Momentum: Diligen Launches AI Contract Assistant for Real Estate Documents
Written By Konrad Pola, Co-Founder and CEO
We are excited for today’s launch of Diligen Real Estate, an extension of our AI contract platform with the addition of over 60 new provisions to help identify clauses important to real estate law practices. This will allow customers to build a competitive edge through automated, intelligent lease abstraction.
Based on feedback from our client base, we continue to look for opportunities to extend the value of AI to improve the manual and tedious process of contract review which is a huge pain point for lawyers. Lawyers working on real estate transactions in particular are still completing lease abstractions manually (slow, tedious work). By making contractual obligations easily accessible and quickly searchable, lawyers are able to gain negotiating power through better data, without incurring the significant cost of traditional due diligence.
Diligen is trained to accurately identify over 60 provisions most commonly found in real estate transactions which lawyers can use to identify high priority documents for review. In speaking with lawyers who focus on lease abstraction, here are some of the reasons why they’re excited to use Diligen for real estate.
Understanding Co-Tenancy Requirements
Shopping centres often contend with leases that stipulate a tenant will only lease a property if other anchor tenants (co-tenants) will do so too. A clause of this nature being included in a lease may put a shopping centre landlord in a difficult negotiating position. The new co-tenancy and Continuous occupancy provisions available in Diligen allow landlords to instantly check whether existing tenants in the center have agreed to open and operate before agreeing that a new tenant may terminate if they don’t.
Identifying Exclusive and Permitted Uses
Tenants will sometimes only lease space on the condition that the Landlord won’t lease any other spaces to the tenant’s competitors. This requires the parties to draft an exclusive use provision to define the tenant’s core business and allow only the tenant to conduct that business. An exclusive use provision is one of the most important provisions in a lease, and for a Landlord to know exactly what they can agree to they will need to first know the core businesses of their existing tenants. Diligen has Exclusive use and Permitted use provisions to allow a Landlord to quickly extract the key information about what their existing tenants are permitted to use their retail spaces for, and whether any tenants have the exclusive right to a business use. Being able to quickly find the right information during lease negotiations saves time and cost, and allows lawyers to draft a clear and unambiguous provision that protects both parties.
Identifying The Priority Interests In A Property
Landlords involved in commercial leasing will often require financing from lenders who need to conduct due diligence of their own. For a lender who is considering financing a landlord in exchange for security in a leased property, it’s important to know what priority the mortgage will take over any existing leases in the event of a landlord's default. Diligen has developed Subordination, Attornment, Non-disturbance agreement and Recordation provisions to help lenders to be able to quickly determine the priority of interests in a property, and identify whether their interest would take priority over any others before deciding to lend. The ability for a lender to find this information quickly and with high accuracy could have positive implications for both Landlord and Lender, increasing certainty and decreasing transaction time and cost.
These are just a few of the 60 new provisions we’ve added to support real estate transactions.
We’d love to schedule a demo if you are interested in hearing more. More information can also be found in today’s press release found at:
http://www.globenewswire.com/news-release/2018/08/01/1545338/0/en/Diligen-Launches-AI-Contract-Assistant-for-Real-Estate-Documents.html