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Leading real estate companies have discovered that deploying technology tools throughout the contract cycle leads to more success. Automating this documentation process through tools like contract software can not only help you save time but can also make sure every detail is noted and accounted for on each file. By incorporating AI-powered tech tools throughout a contract's lifespan - from inception through negotiation and execution - you can get a complete picture of every deal without the manual heavy lifting.
Incorporating CLM or Contract Lifecycle Management Software into your day-to-day operations will allow you to be more organized and provide better support during negotiations, letting you focus on closing deals instead of paperwork. Contract management software offers the opportunity to align contracts seamlessly with an organization’s needs because it is customizable to a business' specific workflow, tailoring itself in order to provide users with a streamlined experience based on their particular needs.
Listed below are some of the key benefits of using CLM for real estate documentation procedures:
1. Secure Contract Repository
CLM houses all the contracts and associated documents in a repository that is made available to all necessary personnel 24/7. Data is truly the bloodline of commercial real estate. Even before making the pitch to a client for the leasing or disposition of commercial real estate, a broker gathers tax records, nearby traffic counts, past or current marketing brochures from competitors, and several other documents to develop a complete picture of the asset. Often that data is scattered throughout the broker’s computer, laptop, and smartphone; contract management software helps centralize the storage of all of those documents and allows other team members to quickly find necessary contract data. A study from the Aberdeen Group indicates that best-in-class enterprises can cut contract creation and approval cycle times by 15% to 20% through several initiatives, including the use of contract management software to centralize contract data.
2. Faster creation of contracts
Keeping hard copies of contracts or digital documents on a laptop frequently leads to contract templates that might no longer be legitimate or that can also encompass clauses that are solely relevant to every other client. The contract management software program solves this hassle by housing all of your contracts, related documents, and information in an impervious centralized repository, which is always available to team members 24/7 with an Internet connection. With contract management software, you can create a library of each contract template and clause. The contracts and clauses can be categorized by geography and other criteria so that those responsible for creating contracts can access the appropriate contract data. A centralized library of clauses would allow the salesperson to make changes, all of which can be tracked by using the contract management system.
3. Track Contracts
Once a contract has been created and executed, it does not imply the assignment is done. Continuous monitoring and archiving of property files and records, while also monitoring all the ongoing transactions, is crucial. Most CLMs offer dashboards to ensure that the appropriate level of information and visibility is available for managing key risk factors such as upcoming expirations, exception-based clauses/language, obligations, and other information associated at the Counterparty, Contract, or Property Level. CLM gives a convenient way for real estate agencies to do this automatically.
4. Collaboration
Get everyone to participate, collaborate and negotiate in a secure environment. Real estate agencies can negotiate the terms with the parties from within the software instead of doing it manually. CLM ensures configurable access controls for safeguarding sensitive information and also accesses the comprehensive audit trail, version management, and side-by-side version comparisons during negotiation. Once the terms are accepted by both parties it can then also be sent out for approval.
5. E- sign
Completed contracts can be sent out to parties for electronic signatures, which is time and cost-effective. E-signatures are secure, and arguably more secure than traditional signatures. Unlike wet ink signatures, e-signatures cannot be forged or applied by any person other than the intended recipient. Documents signed with E-signatures are accompanied by additional layers of security and authentication in the form of an audit trail and proof of transaction, which make it easy to establish, among others, the time and place of signing. Due to these security features, these signatures are easy to authenticate in the event that they are ever challenged.
Scribe Zero CLM enables organizations to streamline all contract management processes helping minimize risks and design a better compliance management framework by storing all contract agreements within a centralized and secure repository. Key benefits of using CLM software in real estate are faster creation of listing agreements, improved insight into deviations from pre-approved contract language, built-in deployment of compliance tasks, and ongoing archiving of documents and records.
