Sales Audit

There is a common provision in leases known as gross turnover and this provision relates to additional rent paid, on top of their base rent, based on a percentage of gross sales. Gross turnover provisions are commonly found in leases of certain commercial spaces such as shopping malls and other multi-tenant retail spaces.

An audited statement of the tenant’s monthly gross turn over for each month is normally required to be submitted to their landlord at the end of the tenant’s financial year. The certification of the tenant’s auditor shall be accepted by the parties as conclusive of the amount of the gross turnover of the relevant period.