Common use of Owner’s Right to Audit Clause in Contracts

Owner’s Right to Audit. Upon reasonable notice and during normal business hours, Owner shall have access to Manager’s books and records relating to the Property and shall have the right to audit such books and records during the period of this Agreement and for a period of five (5) years after termination of this Agreement. Owner also reserves the right upon reasonable notice and during business hours to perform any and all additional audits relating to Manager’s activities either at the Property or at Manager’s office located at 0000 Xxx Xxxx Xxxx, Xxxxx 000, Xxxxxxxxx, Xxxxxxxxx. If Owner’s employees or appointees discover either weaknesses in internal control or errors in record keeping, Manager shall correct such discrepancies either upon discovery or within a reasonable period of time. Manager shall inform Owner in writing of the action taken to correct such audit discrepancies. Any and all such audits conducted either by Owner’s employees or appointees shall be at the sole expense of Owner. However, if an audit reveals any errors in record keeping or any misappropriation of funds by Manager, its agents or employees or if the audit reveals that the net cash flow from the Property for the period audited exceeded the net cash flow reported by Manager in the Monthly Reports for such period by 3%, the cost of the audit shall be borne by Manager. Owner’s right to require Manager to pay the cost of audit under these circumstances shall be in addition to any other rights or remedies that Owner may have under this Agreement or in law or equity.

Owner’s Right to Audit. Upon reasonable notice and during normal business hours, Owner shall have access to Manager’s books and records relating to the Property and shall have the right to audit such books and records during the period of this Agreement and for a period of five two (52) years after termination of this Agreement. Owner also reserves the right upon reasonable notice and during business hours to perform any and all additional audits audit tests relating to Manager’s activities either at the Property or at any office of Manager’s office located at 0000 Xxx Xxxx Xxxx, Xxxxx 000, Xxxxxxxxx, Xxxxxxxxx. If Owner’s employees or appointees discover either weaknesses in internal control or errors in record keeping, Manager shall correct such discrepancies either upon discovery or within a reasonable period of timeperiod. Manager shall inform Owner in writing of the action taken to correct such audit discrepancies. Any and all such audits conducted either by Owner’s employees or appointees shall be at the sole expense of Owner. However, if an audit reveals any fraudulent or intentional errors in record keeping or any fraudulent or intentional misappropriation of funds by Manager, its agents or employees Manager or if the audit reveals that the net cash flow from the Property for the period audited exceeded the net cash flow reported by Manager in the Monthly Reports periodic reports for such period by three percent (3%), the cost of the audit for the Property shall be borne by Manager. The right of Owner’s right Representative to require Manager to pay the cost of audit under these circumstances shall be in addition to any other rights or remedies that Owner may have under this Agreement or in law or equity.