Glossary
Legal & Compliance
Statute of Limitations
The maximum period during which a legal claim can be filed after a cause of action arises. For CAM overcharge disputes, the statute of limitations for written contract claims typically ranges from 3 to 6 years depending on the state.
Firm impact
The statute of limitations defines the outer boundary of the recovery window. Even if the lease permits a broader lookback, claims time-barred by the statute are unrecoverable. Firms that understand state-specific limits advise clients more accurately on the scope and urgency of each engagement.
How this gets abused
A Texas tenant discovered in 2024 that they had been overcharged since 2018. Under Texas's 4-year statute of limitations, they could only recover back to 2020. Two years of overcharges, totaling approximately $90,000, were time-barred.
Practitioner note
Key state statutes for written contracts: California 4 years, Texas 4 years, New York 6 years, Florida 5 years, Illinois 10 years. The discovery rule may toll the statute in states that recognize it for contract claims.
Related terms
FAQ
Questions about statute of limitations
Should my firm advise clients to act urgently rather than waiting?
Yes. The legal clock runs from each year's charge. Each delay can shrink the recovery window. A CAMAudit review helps your firm choose what to audit first.
Does the statute of limitations differ from the audit rights window?
Yes. The audit rights window is a contractual deadline in the lease (often 60 to 180 days from receiving the reconciliation). The statute of limitations is a legal deadline imposed by state law. Both limits constrain recovery, and the shorter of the two governs.
You know the term. Now check the math.
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