What Artificial Intelligence can do for real estate lawyers
by Marketing Team | January 25, 2021
Artificial Intelligence has been on the legal scene for a few years now – but it’s still uncommon to find legal technology solutions focused solely on property law.
There are AI-powered solutions that range from legal research to contract management but they haven’t been designed to cater to the needs of a particular legal niche. This is critical, because different legal sectors have their own set of challenges and requirements.
On the other hand, Proptech is a growing sector, with innovative AI-powered technology designed for improving the management and development of real estate. But again, only few PropTech solutions take lawyers into account. More often, PropTech focuses on maintenance and management of premises – though a fusion of IoT and AI capabilities. Little attention has been given to the legal “side” of every property business: negotiation, due diligence, deal management, monitoring of the contracts portfolio.
Neglected both by PropTech and LegalTech, real estate lawyers needed our support. We could not remain indifferent.
And in all truth, there are a number of ways real estate lawyers can benefit from the untapped potential of Artificial Intelligence. To name a few: automating the document review process, extracting relevant information, and ensuring compliance with existing regulations by speeding up their review, identifying relevant obligations and legal amendments, flagging discrepancies with existing corporate policies: all activities that lawyers have to carry out, in high volumes, repeatedly.
Agreements are the bread and butter of real estate lawyers and attentive document review, during a due diligence process, negotiation or sales process is both time consuming and error prone. Artificial Intelligence-powered document review allows for a faster, more-attentive analysis of the document and summarises the results in an easily digestible format.
Cognitiv+ intelligent document review technology is trained to read contracts and recognise major data insights from main contract models. Our technology can also extract obligations and rank them on the basis of their severity.
A lease abstract is a document that real estate lawyers know pretty well: an easily navigable document which includes the most relevant legal and financial information included in a lease agreement: basically a summary of the lease, with the most important data outlined for easy and quick review.
Sophisticated artificial intelligence technology like Cognitiv+ makes it possible to create accurate lease abstracts automatically and at scale.
AI lease abstraction technology is trained to recognise major data insights within lease agreements such as:
- Names of the tenant(s) and landlord
- Address and square footage of the space
- Ground rent
- Service charges
- Whether the tenant has right of first refusal
- Termination Clause
- Rent indexation
- Real estate taxes
- And many other Covid-19 relevant clauses
Knowing the relevant regulations that are going to impact on the real estate sector – – is essential.
This means being able to navigate complex regulatory instruments looking for the provisions that apply to your case: for instance the Coronavirus Act 2020 contains a large number of sections of which only a handful impact, albeit strongly, the real estate sector.
The Cognitiv+ Artificial Intelligence technology has been trained to review and identify relevant obligations from existing regulations. The neural translation system makes it possible to translate from 50 other languages into English, allowing you to process and understand foreign legislation.
Being able to analyse particular documents and extract only the clauses and provisions that matter for your business is equally important. With our machine learning annotator, real estate lawyers are able to easily train the software to identify and extract only the data they need.