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13 Detection Rules: What CAMAudit Checks in Your CAM Statement

Every CAM reconciliation statement runs through 13 forensic checks. Errors appear in roughly 30% of commercial reconciliation statements reviewed, according to data from tenant-side auditors. Six rules perform deterministic math calculations against your lease terms: they compute exact dollar overcharges for management fees, pro-rata share, gross-up, CAM cap, base year, and estimated payment true-up. Seven rules use AI classification to identify charges that violate lease exclusions or exceed permitted categories. Together they catch the overcharge patterns that most tenants miss entirely.

Definition

forensic CAM audit

A forensic CAM audit is a systematic review of a CAM reconciliation statement against the lease terms that govern it. It compares each expense line item against what the lease permits, checks the math used to calculate the tenant's share, and identifies recoverable overcharges with documentation. CAMAudit automates this process in under 5 minutes.

Math-Based Rules

Five of these rules calculate exact dollar overcharges using your lease terms and reconciliation figures. Results are deterministic: given the same inputs, the calculation always produces the same answer. The sixth, Gross-Up Violation, is advisory: CAMAudit identifies whether gross-up was applied incorrectly, but quantifying the dollar impact requires the landlord's internal cost allocation data.

3
Math-Based Rule

Management Fee Overcharge

Calculates the maximum management fee your lease permits and flags the exact dollar overage when the actual fee exceeds that cap.

4
Math-Based Rule

Pro-Rata Share Error

Verifies your pro-rata share fraction against your lease and calculates overcharges caused by an incorrect denominator or numerator.

5
Math-Based Rule

Gross-Up Violation

Checks whether required gross-up adjustments were applied to variable expenses when building occupancy fell below your lease threshold.

6
Math-Based Rule

CAM Cap Violation

Compares year-over-year CAM charges against your lease cap and calculates the exact dollar amount charged above the permitted increase.

7
Math-Based Rule

Base Year Error

Detects understated base year expenses that inflate every subsequent CAM reconciliation charge for the life of your lease.

18
Math-Based Rule

Estimated Payment True-Up Error

Verifies the reconciliation true-up matches expected amount after subtracting estimated payments already made.

That covers the math. Here is where classification comes in.

Classification Rules

These seven rules use AI to classify expense types and compare them against your lease exclusions and permitted categories. Findings identify charges that violate your lease terms and require documentation review to confirm.

1
Classification Rule

Gross Lease Charges

Flags CAM charges billed to tenants whose gross lease already covers those costs in their all-in rent.

2
Classification Rule

Excluded Service Charges

Identifies expense categories your lease explicitly prohibits from CAM pass-through, such as capital costs, executive compensation, and bad debt reserves.

9
Classification Rule

Insurance Overcharge

Classifies insurance line items and flags specialty or executive coverage types that are not eligible for CAM pass-through under your lease.

10
Classification Rule

Tax Overallocation

Checks whether real estate taxes were allocated to the correct parcel and flags special assessments not authorized by your lease.

11
Classification Rule

Utility Overcharge

Detects utility costs for individually-metered tenant spaces or non-common areas that should not appear in the shared CAM pool.

12
Classification Rule

Common Area Misclassification

Uses AI classification to identify capital improvements, leasing costs, and construction work disguised as routine maintenance in CAM.

13
Classification Rule

Controllable Expense Cap Violation

Identifies controllable expenses per your lease definition and flags both reclassification tricks and annual increase overages.

Frequently asked questions

Next Best Step

Use the rules as proof, then move back into the audit flow

Detection rules are supporting evidence pages. The next step is to see how findings appear in the report, then start the audit.

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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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