Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The Estoppel certificate offers confirmation by the tenant regarding the terms and conditions of rental agreements. These include the rental amount, security deposit amount, and the agreement expiry. The certificate may also offer opportunities for tenants to state whether they have any claims to make against the landlord in question, affecting the decision of the lender/buyer to execute the transaction that has been proposed.
A few lease agreements or contracts may require tenants to complete these certificates or allow the landlords to complete the same under specific scenarios. Tenants may be regarded as defaulter as per the lease agreement after they fail to adhere to landlord requests for Estoppel certificates. The certificate helps in letting prospective property buyers know about the present landlord they wish to buy from, with regard to having the same mindset regarding lease terms as tenants. This communication comes to tenants if the landlord or owner of the property wishes to sell the same.
