We often have heard about the lease abstraction process from people who rent commercial/ residential properties. For those who are unaware, a lease abstract is a concise form of the lease contract between two parties, which contains all the crucial information about the terms and aspects that are relevant to both parties as the original document may be hundreds of pages long. Searching through it is a quite hectic job; hence lease abstracts serve a pretty important purpose.
Aspects covered in a lease abstract:
Alease abstract covers all the details that will be crucial to both the parties in terms of business, i.e. name of the parties, addresses, rent amount, rent escalation, damages, and other itineraries. Alease abstract must be made after consulting both the parties as no clause that is vital in terms of business aspect is to be left untouched. If dealt recklessly, the whole purpose of getting a lease abstract fails.
Role of reviewing a lease abstract:
After the lease abstract has been finalized, both parties must review it. The review plays a vital role as it ensures that the document has been made up to the standards and no crucial aspect is left untouched. If there is no such mistake or the lease abstract is complete, it can be rendered and made up to the required standards within the due time. A proper review by both parties ensures that they both mutually agree to the terms and clauses mentioned in the abstract.
Review of a lease abstract mitigates and sometimes eliminates the potential risks of potential frauds or injustice, which may arise from an unaddressed clause. A proper lease abstract contains tenant termination rights, tenant’s right of refusal, tenant options of altering the premises, ground leases, taxes, and reimbursements, etc.
As a lease abstract is written in a more comprehensible way, the terms that are ambiguous or unclear can be understood and reframed within due course of time. It must not contain twisted legal terms that a common person with no legal knowledge fails to understand. The document should be such that both the parties should be able to comprehend it easily, otherwise the whole purpose fails.
The review also ensures that there are no hidden clauses or terms that the party/parties are unaware of. With the help of a proper lease abstract, the investor or party will easily compare the property with the rest. Ideally, the lease abstracts should follow the same format but due to various constraints, they differ widely.
Why SKJ Juris should be your choice?
SKJ Juris is a popular lease abstraction service provider with innovative technology and a team of highly experienced professionals that deliver custom lease abstracts, full lease abstracts, and financial lease abstracts to their clients. They ensure that good quality lease abstracts are delivered for both the parties to review it carefully and mutually agree on the clauses of the contract. Therefore, after proper review, the document is handed over to the parties. This ensures that the potential risk of suffering an injustice is duly eliminated. Hence, review of a lease abstract is must to ensure high efficiency.