CAM charges cover maintenance, insurance, taxes, and management of shared areas, allocated among tenants by proportionate share. Disputes involve includable categories, allocation methodology, and reconciliation accuracy.
Audit rights permit tenant verification.
Alternative Names:
CAM Dispute|CAM Reconciliation Dispute
Why it Matters?
Capital expenditures improperly included in operating expenses are the most common dispute, since a roof replacement is a capital item that should be amortized rather than charged in full to a single year's CAM. Gross-up provisions and administrative fee percentages are separately contested. Audit rights with defined procedures and time limits are what enable tenants to test the reconciliation before the objection period lapses.
Frequently Confused with
Related terms
Frequently asked questions
What is the most common CAM dispute?
What enables tenant verification?
