Estoppel FAQs

Attorney Kistemaker is a voting member of the Florida Bar Condominium & Planned Development Committee and as such, serves as Co-Chair of the Education Sub-Committee and additionally, serves on and the Senate Bill 4D/154 Substantive Legislative Committee Task Force and Board Certification Course Committee.

1. What are the statutory estoppel requirements for a condo association?

An estoppel letter/certificate is used to facilitate a closing by providing a snapshot of the fees or assessments that a seller may owe to their association. Property owners who live within a community association must contact the association to get an estoppel letter when they sell their home or condominium unit (usually through title company or attorney).

The association is obligated by statute to provide an “estoppel certificate” within 10 working day of receipt of a written request. 

At closing assessments will be prorated per the estoppel and both the buyer and seller will contribute and pay (similar to taxes). 

If the title company does not verify the amount of assessments that may be due, the new owner becomes liable for all past due assessments and could then make a claim against the title insurance company for contribution.

When the association represents that a certain amount of money is due for a unit, the title company and the closing agent rely on that number in calculating the closing adjustments and issuing title insurance. In other words, when the association responds that a certain amount is due, it is “estopped” from later claiming some other amount is due, because the parties have relied upon the numbers provided. That is why it is important to be very careful in preparation of these documents, which under current law, also require the provision of additional information not related to assessments, such as if the if the property is in violation and the following items:

• The monthly, annual or quarterly association dues;
• Any outstanding payments and fines;
• The name of the management company or association that payments need to be made payable to;
• Any parking space, storage unit, or dock space that comes with the unit;
• Whether the subject condo unit or HOA property has any violations imposed against it;
• The amount and frequency of any special assessments;
• Whether the association has the right of first refusal;
• Any transfer taxes or other fees that must be paid at closing;
• Whether association approval is required and whether it has already been applied for; and
• If there are any other associations that need to be contacted for an estoppel statement (such as a master association).

The Condominium Act, the Cooperative Act, and the Homeowners’ Association Act, all regulate the amount the associations can charge for “estoppel certificates.” Lawyers can charge more. 

2. Whose responsibility is it to pay the estoppel fees? Seller pays for these fees 

• For non-delinquent accounts, the association may charge no more than $299.
• For delinquent accounts, the association may charge up to an additional fee of $179.
• If the estoppel certificate is requested on an expedited basis, the association may charge an additional fee of $119.

3. What are the obligations of condo Association when an estoppel is requested? The association is obligated by statute to provide an “estoppel certificate” within 10 working day of receipt of a written request. 

At closing assessments will be prorated per the estoppel and both the buyer and seller will contribute and pay (similar to taxes). 

If the title company does not verify the amount of assessments that may be due, the new owner becomes liable for all past due assessments and could then make a claim against the title insurance company for contribution.

So, when the association represents that a certain amount of money is due for a unit, the title company and the closing agent rely on that number in calculating the closing adjustments and issuing title insurance. In other words, when the association responds that a certain amount is due, it is “estopped” from later claiming some other amount is due, because the parties have relied upon the numbers provided. That is why it is important to be very careful in preparation of these documents, which under current law, also require the provision of additional information not related to assessments, such as if the if the property is in violation and the following items:

• The monthly, annual or quarterly association dues;
• Any outstanding payments and fines;
• The name of the management company or association that payments need to be made payable to;
• Any parking space, storage unit, or dock space that comes with the unit;
• Whether the subject condo unit or HOA property has any violations imposed against it;
• The amount and frequency of any special assessments;