Draftomat for real estate contract management
Real estate companies manage large office portfolios rent substantial number of units. This means loads of MoUs/terms sheets and lease agreements. The companies usually have templates or model document which they customize. Customization means inserting data (unit address, size, rent price etc), selecting one alternative over another and making elections that depend on the parameters of the specific transaction. However, that only partially addresses the workload issue.
Problem # 1 Inefficiency
Manual preparation of contractual documentation for a large real estate portfolio can be overwhelmingly time-consuming.
Problem #2 Inaccuracy
Whether the company has templates or not, the drafter usually resorts to "contract recycling" or "contract cloning." This means taking an existing contract and using it as a starting point for a new transaction. The process typically involves making changes to certain terms and clauses to reflect the specific details and requirements of the new transaction. As a result, it often happens that old data from the previous contract is inadvertently left in the new document. Furthermore, the old document may reflect a choice of an alternative that was appropriate for the then transaction but is not appropriate or best for the present transaction.
Problem #3 Inconsistency
Even if one starts from a fresh template, selecting one option over another usually triggers the need for other changes within the template. This may escape the attention of the drafter. The result is an inconsistent document.
Problem #4 Difficulties with collaboration
Things get even more complicated when multiple people need to work on the same document. It may be difficult to track who changed what and who is authorized to change what. Exchange of multiple documents get create a mess.
With Draftomat, real estate company can automate its templates relating to leases. Automation means uploading the template on the software and linking variable in the template to a corresponding question and guidance for the person in charge of producing customized documentation.
An automated term-sheet/MoU or lease agreement is customized by answering intuitive questionnaire and following the guidance on what to take into account or whom to consult when answering a particular question.
The answer has to be given only once and it is automatically applied throughout a set of documents. For example, the answers to the questions on the rent and service charge amounts are automatically applied in both the MoU/term sheet that the company needs immediately and in the draft lease agreement that it may need later.
The full set of documentation is ready in just a few clicks.
The software automatically applies data provided once to all fields that require such data. This reduces the risk of typing errors.
Moreover, contract recycling becomes obsolete, which resolves the risk of piggybacking unwanted contents from old contracts.
Draft document can be circulated within the organization thanks to the document share function of Draftomat. The company can designate in the software who needs to OK which change or selection in the template. The company can also monitor on the portal whether the internal contract origination procedure is being followed.
-Significant time savings . What used to take 60 minutes can be reduced to 10 minutes.
-The focus of legal department can shift from mundane tasks to more valuable work.
-Reduced risk of typing errors .
-Reduced risk of inadvertent content .
-The process is guided to ensure correct answers and selections are made within the documents.
-Promotion of organizational discipline and collaboration .