A Lease Estoppel Certificate Constituting The Exercise Of A Renewal Right

Introduction

Almost all commercial leases contain a provision that the landlord can call for the tenant to sign a document or certificate detailing and confirming various lease related particulars. These are commonly required by purchasers and lenders. They are often referred to as estoppel certificates.

An estoppel certificate is founded on the principle of promissory estoppel, the theory being that a party that executes an estoppel certificate is thereafter "estopped" from being able to assert a fact inconsistent with what is set out in the certificate. The case law around estoppel certificates generally deals with whether or not the signing of an estoppel certificate by a tenant has achieved the intended result for the purchaser or lender.