What if my landlord won’t give an estoppel certificate?
A landlord who refuses or delays an estoppel certificate is a genuine closing risk, since neither the buyer nor their lender can otherwise confirm the lease’s true terms independently. The usual fallback is a detailed certificate from the seller instead, backed by an indemnity, while pressing the landlord and building extra time into the closing schedule.
Unlike consent to an assignment, most commercial leases do not actually obligate a landlord to provide an estoppel certificate at all, which is a large part of why refusal or silence happens more often than buyers expect going in.
Why a landlord might not cooperate
Some landlords have no contractual duty to provide one and decline as a matter of policy. Others are slow because it simply is not a priority for them, or because their own records — the rent ledger, notices sent, side arrangements — are not in order enough for them to certify cleanly. Reluctance itself is sometimes worth investigating rather than dismissing.
A seller’s certificate is the usual substitute
Where a landlord will not provide one, buyers commonly ask the seller to represent and warrant the same facts directly in the purchase agreement — current rent, remaining term, any default, side agreements — backed by an indemnity if something later proves wrong. It is a weaker substitute than an independent landlord confirmation, but it shifts the risk of an inaccurate answer back onto the party who actually knows the lease’s history.
Some leases can be read to require one anyway
Check the lease itself before assuming there is no leverage at all. Some commercial leases include a clause obligating the landlord to provide a certificate on reasonable request within a set number of business days, turning what looks like a discretionary favour into an enforceable obligation worth pointing to directly.
Build the delay into your timeline
Because this is a common reason a closing date slips, request the certificate as early as possible, ideally alongside the landlord-consent conversation, rather than waiting until the rest of the deal is otherwise finished, so a slow landlord does not become the single item holding everything up.
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canada Revenue AgencyGovernmentSelling a business
- 02Treadstone LawLegal commentaryGetting a Landlord Estoppel Certificate When Selling a Business in Ontario
- 03Treadstone LawLegal commentaryGetting Landlord Consent to Assign a Commercial Lease in an Ontario Business Sale
- 04Treadstone LawLegal commentaryConditions Precedent to Closing in an Ontario Business Sale Agreement
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