Audit Rights
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
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