What Is an Estoppel Certificate?
When a Florida condo or HOA property is being sold, the title company needs to know exactly how much the seller owes the association. The estoppel certificate provides that answer. It is a snapshot of the seller's account, certifying all amounts currently due.
The estoppel is legally binding on the association. Once issued, the association is "estopped" (legally prevented) from later claiming the seller owed more money than what was stated in the certificate.
What the Estoppel Contains
- Outstanding Assessments — Any unpaid regular monthly/quarterly assessments.
- Special Assessments — Any pending or approved special assessments (often the most significant hidden cost).
- Late Fees and Interest — Accumulated penalties on overdue payments.
- Fines — Any outstanding violation fines imposed by the association.
- Attorney's Fees — If the association has referred the account to its attorney for collection, those fees are included.
- Capital Contributions — Some associations charge a "transfer fee" or "capital contribution" when a unit is sold.
Florida Law Requirements
Under Florida Statute 720.30851 (HOAs) and Florida Statute 718.116 (condos), the association must deliver the estoppel within 10 business days of the request. The fee for the estoppel is capped: $250 if delivered within 10 business days, plus $100 for expedited (3 business days) or delinquent accounts.
Related Terms
- Assessments — The primary charges disclosed in the estoppel
- HOA — The entity that issues the estoppel
- Closing Costs — The estoppel fee is a closing cost
Barnes Walker HOA Closings
Barnes Walker's real estate attorneys review estoppel certificates for every Florida HOA and condo closing, identifying hidden special assessments, undisclosed fines, and inflated transfer fees that could surprise our buyer clients after closing. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC