Understanding Tenant Estoppels and the SNDA

Fee simple absolute title is usually described as “the full bundle of sticks.” Often, in a commercial transaction, the seller does not have the full bundle of sticks to convey. Typically, at least one tenant has the stick of possession via a lease. A purchaser or lender typically requires estoppel letters from every tenant and the landlord in order to determine the status of their rights and obligations under existing leases.