Lease Abstraction Essentials
Leases serve as an foundation for the assets purchased and are the epicenter of the income stream that feeds the property. As we all are aware that accurate and to the point information is crucial for every business. Let us first understand the meaning of the word abstract. An abstract means summation of all important information that a contract or a lease document contains. An abstract is a summary of the important information that a contract or lease contains. In other words we can say that abstraction is the process of making things short and easy. However one must not forget that abstracting data from a lease or a contract is a tough and a time consuming job. The lease abstraction essentials depends on whether the abstract shall be reviewed for acquisition, management or a merger, or for underwriting and lending purposes
What are lease abstraction essentials?
An evaluation of the complete lease document is not only necessary but is also an vital component of the due-diligence procedure. It is important that each lease is reviewed thoroughly and abstracted and it is very important to focus on lease abstraction essentials while abstracting a lease document so that no crucial info is missed. A well abstracted document provides vital info like the commencement and expiry date, term, renewal procedure, termination, etc. It also provides the exact section or clause the reader needs to look at if he needs detailed info about a particular clause. The process of abstraction involves through reading of the entire contract or lease document so as to fetch vital info. The key to efficient contract or lease abstract, is that no important information should be missed.
A contract or a lease document can vary from few pages to hundreds of pages. Most of the info in the contract or the lease is not needed on daily basis. However looking for relevant info from too many pages can be tiring and cumbersome. Abstraction comes in handy in such situations. Abstraction summarizes all the vital info so that it is available at one’s fingertips. A lease abstract is a summary of crucial financial, business and legal information in a commercial lease. In addition to summarizing the typical lease provisions, it should also bring to the reader’s attention any uncommon lease provisions, financial obligations and other important matters.
The abstraction process has gained popularity in the last decade or so. Busy executives have realized that an abstract plays an important role when it comes to decision making. The level of detail that an abstract contains depends on its purpose of review. The details of an abstract can vary according to the purpose like acquisition, management or a merger, or for underwriting and lending purposes. A good abstract usually contains basic lease info like identification of landlord and tenant, description of the premises and the total square footage of the leased property and commencement and expiration date. A professionally abstracted document makes it very easy to review all the needed info without spending hours searching for the same. It also helps in better management and organization.
The contract and lease abstraction team at Complete Legal Outsourcing is proficient in extracting data from a contract or a lease while keeping focused on lease abstraction essentials. Each and every document is thoroughly reviewed so that no important detail is missed. At times, tailor made solutions are provided to the client to ensure that client requirements are met. Strict quality control ensures accurate info is captured and no important information is missed. A strict quality check is adhered so as to see that none of the lease abstraction Essentials is missed.
Like most of the due-diligence process, lease abstracting can be a tedious and painstaking job. But before any decisions about the acquisition, management or underwriting of an asset, a complete understanding of the underlying asset should be obtained. Without a detailed and thorough lease abstract, this understanding can be difficult to achieve. Many offshore service providers undertake the process of abstraction. This saves time. Also outsourcing such jobs result in cost saving as compared to in-house production. Complete Legal Outsourcing has successfully catered to many US and UK based attorneys and real estate industry for their contract and lease abstraction requirements. Complete Legal Outsourcing is well known for delivering quality products within a stipulated time frame.
Complete Legal Outsourcing has been assisting US and UK based real estate companies and lawyers with their abstraction needs and have earned a reputation for delivering concise and accurate abstracts within a stipulated time frame. So if you are looking for the abstraction of contracts or leases, all you need to do is contact Complete Legal Outsourcing for accurate data capturing.