Payoff Letter
Know exactly what's owed to the association at closing
A payoff letter (also called a payoff statement or estoppel letter) provides an official accounting of all amounts owed by a homeowner to the association as of a specific date. This includes regular assessments, special assessments, late fees, fines, legal fees, and any other charges. Title companies and closing attorneys require this document to ensure all association debts are settled at closing.
Who Needs This Document?
What's Included
Frequently Asked Questions
What's the difference between a payoff letter and a resale certificate?
A payoff letter focuses solely on the financial balance owed to the association. A resale certificate is a broader disclosure document that includes the payoff amount plus association governance, insurance, legal, and financial health information.
How long is a payoff letter valid?
Most payoff letters are valid for 30 days from the date of issuance. After that, a new statement may be needed as additional assessments or fees may accrue.
Can I order a payoff letter if I'm not the homeowner?
Yes. Title companies, attorneys, real estate agents, and other authorized parties can order payoff letters on behalf of the homeowner with proper authorization.
What if there's a discrepancy in the amount?
Contact the management company directly to dispute any charges. The payoff letter reflects the association's records as of the date of preparation.