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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10237
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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Am I liable to pay to a retail property without seeing the

Customer Question

Am I liable to pay for improvement to a retail property without seeing the work order/invoice when I have agreed to pay for 22% of work done on a common area bill that is sent to me 10 months after signing the lease. I requested the work order/invoice but was turned down
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 5 months ago.

Dear Customer,

Thank you for using our forum. My name is ***** ***** I hope to assist you today.

What you are working with are "CAM" fees (also referred to as "Triple Net" fees), in commercial leases, these fees can be broken down in several different ways, the 3 most common are described here: http://www.nuwireinvestor.com/howtos/how-to-deal-with-common-area-maintenance-cam--a-62775.aspx

So depending on how your commercial lease is drafted, you may be required to pay a larger amount per month than the actual current expenses in order to pay for larger anticipated future costs (for example dealing with inclement weather or other expected costs).

While a landlord is not required to provide copies of a maintenance invoices or receipts, many landlords will simply because it encourages greater cooperation with their tenants.

If there is a dispute between the parties and the matter is forced into litigation (either party sues), then the landlord is required to produce these documents in the course of civil discovery. (So again, it is usually in the landlord's best interest to produce these documents, although there isn't a mechanism to force them to do so outside of litigation).

Some leases can be drafted to require the landlord to produce documentation supporting their CAM or Triple Net charges, but as a default provision, this usually is not included.

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