4 Responses
  1. Most states recognize the covenant of good faith and fair dealings which would allow for an audit of their expenses. One could go back a number of years to audit, based upon the statute of limitations for contract law in that state. In most states, that is 4 years. Why would a tenant restrict its right to audit within 180 days or less after receipt of the statement if they don’t get something in return? That is a big concession for landlords to ask. Tenants must not restrict their right to audit.

  2. Gregg Pasternack

    The problem with relying on a non-contractual right to audit is that without the express right in your lease, you would have to file a lawsuit to enforce it, and it could be prohibitively expensive.

    1. John Sabourin

      Thanks Gregg. I have seen many boiler plate leases that provide only 90 days for the tenant to review and getting 180 days is better than that. I find it difficult to get more than 180 days mainly due to the fact that buildings often sell. A buyer would have a hard time purchasing a building knowing they could be subject to audits from a time prior to their ownership.

Leave a Reply