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. Before you start reviewing, use lextract.io to extract your lease's audit rights clause and deadline language so you know exactly what window applies to your situation.
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Find My OverchargesThis 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.
