Property Management
In New Mexico, which of the following describes a 'triple net lease with CAM reconciliation'?
AThe landlord pays all CAM expenses
BThe tenant pays a base rent plus estimated monthly CAM charges, with an annual reconciliation to actual expenses✓ Correct
CCAM charges are fixed for the entire lease term
DThe tenant pays only the portion of CAM they can control
Explanation
Most NNN leases with CAM provide for monthly estimates of operating expense contributions, then reconcile annually to actual expenses. If actual CAM exceeds estimates, the tenant pays the difference; if less, they receive a credit.
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