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Legal & Compliance

Audit Rights

Last updated: May 2026

A lease provision granting tenants the contractual right to inspect, review, and verify a landlord's CAM records and reconciliation calculations. Audit rights define the timeframe and procedure for initiating a CAM audit.

Firm impact

Your firm's CAM audit engagement is anchored in the client's audit rights clause. Confirm the window length, notice requirements, and record-production obligations before you begin. A missed window can bar the entire recovery.

How this gets abused

A lease specified a 60-day audit window. The landlord delivered the reconciliation on December 26, during the holiday period. The tenant missed the January 24 deadline. The landlord subsequently invoked the binding-and-conclusive clause to block a $45,000 overcharge dispute.

Practitioner note

Check whether the lease requires the audit be conducted by a CPA. Some clauses restrict audit rights to CPA firms. When your firm qualifies under this restriction, it is a direct marketing advantage: only a CPA can perform the audit the lease permits.

Related terms

CAM ReconciliationAudit DeadlineLookback Period

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Recovery of past CAM overcharges depends on your specific lease terms, including any audit rights deadlines or 'binding and conclusive' provisions, and on applicable state law.

State statute of limitations periods apply to written contracts and range from 3 to 10 years. Your actual lookback window may be shorter based on your lease.

CAMAudit is a document analysis platform, not a law firm, and nothing on this site constitutes legal advice. Consult a licensed real estate attorney before initiating any dispute or legal proceeding.

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