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.
Audit rights clauses typically specify: (1) the window to initiate an audit after receiving the reconciliation (commonly 60–180 days); (2) notice requirements; (3) the records the landlord must produce; and (4) whether the audit must be conducted by a CPA. Some leases include "binding and conclusive" provisions that extinguish audit rights if not exercised in time.
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.
Treat the audit window as a hard deadline. Immediately upon receiving a reconciliation statement, send a written acknowledgment to the landlord noting the delivery date. If you suspect overcharges, send a formal audit notice before the deadline even if your analysis is incomplete.
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Start Free AuditThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.