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Additional-Rent Reconciliation
Issues can arise in the context of additional rent reconciliations that occur pursuant to the provisions of a commercial lease. We examine herein specific concerns from both landlord and tenant perspectives relating to over- and under-payments of rent, improper charges, supporting documentation and auditing procedures, as well as potential bars to claiming recoveries.
In particular, we discuss the following issues: 1) The additional rent reconciliation process and thoughts on the interpretation of annual statements; 2) Matters relating to access, disclosure and audit rights and accompanying drafting considerations; and 3) Timing issues for recovery or overcharged or undercharged amounts in the context of the Limitations Act, S.O. 2002, c. 24 Sch. B (the LA) and the Real Property Limitations Act, R.S.O. 1990, c. L.15 (the RPLA).
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