Abstracting of contracts and leases is fast gaining an edge over all the prevalent data management activities. With new laws making it mandatory to document all activities,even small companies are adopting the practice of abstraction for effective data management. The process of abstraction begins with the signing of a contract. A contract contains both important and irrelevant information. The abstraction process helps to summarize the important information so that it can be easily reviewed. The abstract should summarize selected information from the lease, and show the reader where to look for further information. Additionally, all the financial terms of the lease deal are documented in the abstract, which makes it useful for property investors or lenders and the process of the lease abstract is known as Lease Abstraction.
Abstracting-The New Word For Effective Data Management[/caption]
A contract or a lease can contain hundreds of pages. Most of the information contained in such documents is not needed for periodic review. Hence, searching the whole document for relevant clause or info can prove to be a tedious task. The process of abstraction steps in here to make this job simpler. Abstraction provides a summary of important info thus making it easier to keep track of important and relevant points. he lease abstract provides a method to capture and present lease information in a summarized, at-a-glance format. Because leases are usually lengthy and difficult to read, the lease abstract provides lease administrators with a short reference that is referred to more frequently. Lease abstract is a condensed document that is in a simplified format that normalizes the terms, language and length of the document to an easily consumable and understandable form that enables deriving better insights.
Each business,whether big or small enter into many contracts for the smooth functioning of the business. Hence reading the entire contract so as to locate certain piece of information becomes a burdensome task. For Eg. If a business needs to know how much material it needs to needs to ship for ten different clients each month,then flipping endless pages of ten long contracts every month to locate this small piece of information itself becomes a full time activity. The process of abstraction steps in here to make the job simpler as it provides the quantity to be shipped each month in a tabular format so that one is able to view this important info in a few seconds instead of spending long hours looking for the same. Commercial leases are comprehensive documents that can be hundreds of pages in length; they take a long time to read, interpret and/or find information that may be buried, hidden or otherwise not immediately apparent when it is needed. A lease abstract contains all of this information in a one or two page summary. These are internal, proprietary documents used primarily for billing and operational purposes.
Abstracting brings out the important details marking the legal significance of a particular contract or a lease. It also provides insight to crucial data like the governing law, the arbitration process in case of dispute, important dates for renewal, process of termination, etc. which makes it stand apart from all other techniques of data management that were used by businesses worldwide in the past.
Lease abstraction process helps realtors keep up to date on payment histories, renewals, and terminations. However, lease abstraction is often a very time-consuming process, and it therefore helps to have a lease abstraction company on your side to extract the valuable data you need from contracts and other paperwork so that you do not have to. The process of abstraction has gained momentum as businesses have realized its importance and have implemented the same which has resulted in growth and profits. A contract or a lease that has been accurately and effectively abstracted provide great ease of access, stability, and performance to the data management life cycle.
Outsourcing lease abstraction projects have gained much popularity over the last decade. Real estate companies have realized the importance of getting their leases abstracted so as to gain easy access to the crucial information of the leases. Abstraction also helps in better management and acts as a growth tool as no important information is missed. However, one should not forget that abstraction can be a time consuming and monotonous task that can prove to be a obstacle as busy executives do not wish to invest such time which can be fruitfully utilized elsewhere. To overcome this obstacle, many offshore vendors have come up in countries like India who offer lease abstraction services at a very competitive cost and deliver quality abstracts within a stipulated time frame. Complete Legal Outsourcing being one such vendor that has been offering lease abstraction services to its US and UK based clients over the past five years now. Share your abstraction projects with Complete Legal Outsourcing and leave the rest to us.