Stop in the Name of Title Insurance & Estoppel Letters

You're all set to close on that file you have been working so hard on, you go over your closing checklist one more time. Mortgage payoff letter obtained and the good through date duly noted, check! Association estoppel letter requirement met, check! Wait a minute...are you sure? A common source of post closing problems involve the lack of estoppel letters for all associations having jurisdiction over the property and all types of assessments. Can there be more than one association and more than one source of assessments? Absolutely, and failure to pay all assessments due to all applicable associations can result in a claim. Your title agent should always collect and remit to the applicable association whatever amount is shown on the estoppel certificate. Any dispute regarding the amount shown on the estoppel in any transaction must be resolved prior to closing and any change in the amount due reflected in a new estoppel obtained by the agent directly from the association or its management company.

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