Case Study I
LeaseWatch subscriber incurred questionable utility charges.
LeaseWatch audited and reviewed the utility charges, allowing the tenant to recover $92,000 in overcharges.
A LeaseWatch™ subscriber incurred questionable utility charges so they contacted us and we recommended a lease audit. During the lease audit, the tenant was provided with an Estoppel Certificate to sign due to sale of the tenant’s building (an Estoppel Certificate is a document that buyers and lenders require from a landlord to verify that leases are in full force and effect). The tenant’s lease, like most leases, required the tenant to sign any Estoppel Certificate presented by its Landlord within 10 days.
As part of its LeaseWatch™ subscription, the tenant forwarded the Estoppel Certificate to us. That certificate included language, buried in the boilerplate, which would have constituted a waiver of the tenant’s right to recover for improper charges. We identified that language, modified the certificate accordingly, had the tenant sign it within 10 days as required by the lease, and preserved the tenant’s right to recover overcharges.
We then helped the tenant recover $92,000 in overcharges through audit and review of utility invoices and related documentation. Estoppel Certificates almost ALWAYS have unintended consequences, and tenants are typically rushed into signing them. Our job is to help protect our clients against unforeseen consequences, and to save them money.