How Can CLM Improve Efficiency in Property Document Workflow?
Incorporating AI-powered tools throughout a contract’s lifecycle can enable real estate firms to accelerate property transactions and achieve better results. A smart CLM software can empower real estate professionals to create and close deals faster by adding efficiency to the documentation process.
A real estate contract management software can automate the different stages of real estate contract workflow, starting from contract initiation and going up to its storage and renewal.
What Is the Need For Contracts In the Real Estate Industry?
In real estate transactions, two parties come together in order to agree on each other’s terms and conditions by abiding by a contract. The contract serves as proof of the transactions that have occurred over the property, including the ownership details, sale deed, leasing agreement, etc. A contract also ensures that no change can be made on the property until another party agrees. CLM software can provide an array of benefits for realtors to manage their property contracts.
According to reports, the market size of the real estate industry in India is valued to reach 1 trillion dollars by 2030. This gives us a glimpse of the colossal contracts and documents that are required for these transactions. Hence a digital approach to Contract Lifecycle Management (CLM) is essential for real estate professionals dealing with properties, big or small.
The Drawbacks of Manual Contract Management For Property Transactions
- Complexity: Physically managing contracts related to a large number of property deals is a cumbersome task. It requires a high level of attention, and a lot of time needs to be spent on any particular contract.
- Low Contract Visibility: Lack of visibility of contracts across the different personnel involved in the real estate deal makes manual contracts less suitable for property deals which usually involve multiple parties.
- Inefficient Contract Version Control: Due to the absence of software that can display updates to the property contracts in real-time, managing them becomes inefficient throughout their series of amendments.
- Risk of Security: Physically managed contracts pose a higher threat of security risks as there is little to no security to the properties and the buyers’ and sellers’ sensitive information, making manual contract management less preferable for real estate transactions.
- Time Consuming Procedure: Without an automated CLM software, it becomes necessary to manually administrate property contracts, making the process highly time-consuming.
- Low Level of Predictability: Since manual contract management comes with potential time delays, it adds a sense of unpredictability to the real estate business process.
How Can CLM Automate Document Lifecycle Management For Property Deals?
A Smart Contract Lifecycle Management (CLM) system can offer a wide range of benefits for property-related transactions. A real estate document management software brings about a centralized contract data storage system, improved insights into any deviation from approved contract terms, as well as simultaneous archiving of documents and property records.
Built-in modules in the real estate deal management software can help realtors streamline property buying or selling processes. The automated feature of CLM makes managing property documents easier for real estate professionals, thereby reducing their workload.
The advantages of implementing a smart real estate contract management software are many. Listed below are some of the key benefits of using CLM for real estate documentation procedures:
Inbuilt Deployment of Property Deal Compliance:
An automated contract lifecycle management software ensures that all the compliance tasks related to an asset transaction are followed without any discrepancies.
Secure Contract Repository:
CLM offers centralized storage space for the different contracts related to a property. CLM houses all the contracts and associated documents in a repository that would be available to all the necessary personnel 24/7.
Deviation From Pre-Approved Terms Is Minimized:
The activities and updates happening on any contract are notified at all times, ensuring no parties deviate from the pre-approved contract terms. In addition, features like clause locking also enable realtors to make sure that the terms of the contract are being followed duly.
Convenient Tracking:
Once a contract has been created and executed, it does not mean the task is done. Continuous monitoring and archiving of property documents and records, along with tracking all the ongoing transactions, is crucial. CLM offers an easy way for real estate businesses to do this automatically.
Contract Lifecycle Management Process Flow
- Contract Initiation: A contract request is initiated.
- Quick Contract Drafting: Pre-existing templates and industry-specific terms are used to design the contract.
- Contract Term Negotiations: Online negotiation allows parties to align themselves with the contract’s terms and conditions.
- Contract Approval: Following the conclusion of negotiations, contract approval is processed through the company hierarchy for approval.
- Contract Authentication: The approved contract is eSigned, tying all parties to the agreement together. The contract is also eStamped to ensure its legality.
- Contract Analytics Tracking: The contract’s performance is tracked all through its lifecycle to ensure compliance.
- Contract Storage: The contract is stored in a digital repository that allows for quick retrievals for purposes like amendments and renewals.
CLM for Real Estate: The Bottom Line
Documents are the bloodline of real estate businesses as they provide a complete picture of the transactions happening over an asset. An approach to automating documentation in this field can aid in faster deal closures.
By incorporating tech-based tools throughout the lifecycle of the contract, real estate companies close property deals faster and achieve better results. An automated process for contract creation, negotiation, and execution provides a well-organized tool for real estate professionals and guides them to make decisions quickly. In addition, the utilization of real estate contract software for property document workflow can increase the agility of the business in the real estate industry.
Automated document workflow software solutions such as CONTR.ACT by SignDesk can help real estate businesses introduce efficiency to their document lifecycle workflows. It offers a smart platform for businesses to automate their contract procedures and enable them to draft and execute contracts instantly.
Contact one of our sales professionals to learn more about how our contract lifecycle management works.
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