Importance of lease abstraction in identifying critical dates


Going through voluminous books and records of a lease agreement is indeed very hectic, which is easily eradicated through lease abstraction. Lease abstraction is a process of reproduction of the quintessential and useful information, buried in hundreds and hundreds of pages of the agreement. This document or lease abstract can be easily customized as per the request of both the parties, containing whatever information they deem important such as rental terms, notice periods or even critical dates.
What are the critical dates?
In layman’s tone, those dates which are of high importance to either of the parties can be termed as critical dates. They include any commencement date, renewal date, termination date, or even a rent payment date. Failing to take respective actions on these dates may result in the imposition of heavy penalty and even legal suits. Hence, they are termed as critical dates.
Types of critical dates:
For a very efficient and effective real estate, business and corporate planning paying importance to critical dates play a pivotal role. To do so, highly comprehensible and classic lease abstraction is required. Some of them always find their place in the majority of the lease abstracts and are also critical dates.
  1. Possession Date: This signifies the date on which the property or the real estate was acquired and lays the foundation for the lease abstraction.
  2. Expansion Option: This is the period under which either the property or the estate can be expanded or the duration for which the extension can opt. It also entertains the clause of terms and conditions about expansion.
  3. Lease commencement: Date on which the lease starts or commences or the lease commencement date finds its place in the topmost critical dates.
  4. Lease Expiration: The date or duration on which/ after which the lease for the rented property expires, should be given due care of, even if the extension needs to be demanded.
  5. Lease Renewal: The lease renewal dates are given more emphasis as failing to this may lead eviction from the place and relocation of business along with unexpected expenditure as a penalty and/or relocation.
  6. Rent Repayment: A single delay in rent repayment can make the ties between tenant and owner bitter. Hence rent repayment dates should be given the utmost care to avoid any jeopardy.
  7. Rent Commencement: The date from which the rent starts to be given to the landlord is termed as the rent commencement date. This date also finds its way in the critical dates of the lease abstract.
  8. Security deposit: Sometime after the notice period ends the security deposit for the rented property needs to be returned to the tenant after deducting any damage recovery fees, if any.
The relevance of critical dates in a lease abstract:
A good lease abstract always pay heed to all the critical dates, due to the impact they have on the businesses. A good lease abstract is also the one which can be customized as per the demands of both the parties on mutual agreement, which also includes the addition of customized critical dates. Not paying heed to these dates result in penalties and administrative headaches which are a severe loss to the organization in terms of their business operations. With a compact, precise and best lease abstract, no critical date will be lost or unattended.

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