contract clause in which one party asserts that mortgage debt, collateral pledged, and so on, is correct on the date the agreement was made. This prevents the borrower from claiming differently at a later date. Also called an estoppel clause.
document by which the mortgagor (borrower) certifies that the mortgage debt is a lien for the amount stated. The debtor is thereafter prevented from claiming that the balance due differs from the amount stated.
a document by which the mortgagor (borrower) certifies that the mortgage debt is a lien for the amount stated. The debtor is thereafter prevented from claiming that the balance due differs from the amount stated. In a lease it is a clause whereby the tenant agrees to state that the lease is in effect, there is no known default by the landlord, and the rent has not been prepaid.
Example: The Good Money Savings Association asks Abel to sign an estoppel certificate, which he does. Good Money Savings then sells the mortgage to Baker, who buys with confidence. Abel is laterestopped (prevented) from denying that he owed the money.
