Is your critical data buried in contract spreadsheets, PDFs, Word docs, so-and-so? It’s time to stop operating on stale information, and switch to modern technology.
Imagine: you have a pile of contracts to abstract, which will cost quite a penny and take a week to complete. With contract data extraction powered by OCR and AI, you can automatically analyze your contracts, getting the key points and terms in mere minutes, saving yourself from sticker shock.
From renewal dates, parties involved, to pricing and fees, every important detail is systematically extracted. This paves the way for better contract management, risk mitigation, and informed decision-making for both digital files and paper documents.
In this article, we explore how OCR contract data extraction automates manual work and optimizes the key aspects of real estate contract management.
OCR (Optical Character Recognition) scans paper and digital contracts and structures extracted data into a machine-readable text format.
What is OCR in Contract Management?
A recent study found that issues with document management accounted for 21.3% of all productivity loss in the workplace. OCR easily converts images, scans, and other document formats into data that is processed by a computer in just a few clicks.
Additionally, it’s common for 7.5% of contracts to be lost and 3% to remain misfiled. With advanced OCR contract extraction software, brokers and managers can store all necessary contracts in a server minimizing chances of human error.
OCR plays a key role in improving data accessibility in real estate, facilitating document digitalization and data extraction. Real estate has always been a paper-heavy industry, so many documents are still in paper format and are covered with dust in old archives. OCR technology can make them digital and editable, further enhancing storage and management. Also, thanks to OCR metadata extraction, real estate professionals can make more informed decisions and automate data entry.
OCR contract data extraction is a cutting-edge solution for the professionals in the real estate industry. Let’s look at real examples where OCR contract software offers swift and accurate solutions.
Commercial real estate agents and property managers often deal with many lease agreements for office spaces, retail outlets, and industrial facilities. OCR contract data extraction simplifies the extraction of key terms:
This enables agents and managers to quickly analyze lease agreements, identify critical clauses, and track important dates for proactive lease management.
Contract Summary AI
Investors and developers acquiring commercial properties must review numerous legal documents, including purchase agreements, title deeds, and property surveys. OCR contract tool optimizes the extraction of key data:
This automation speeds up due diligence, mitigates risks, and supports informed investment decisions.
Contractors and construction managers involved in real estate projects rely on various contracts. OCR contract software enhances the extraction of important contract details:
This allows contractors to efficiently manage project finances, track progress, and ensure compliance with contractual obligations.
Real estate brokerage firms and individual brokers need to manage brokerage agreements effectively. OCR contract data extraction helps by retrieving key terms:
This streamlines the brokerage process, enhances transparency, and ensures compliance with industry regulations.
Commercial property owners and listing agents use sales and listing agreements for property sales and leasing transactions. OCR contract software automates the extraction of main terms:
This enables efficient management of listings, effective property marketing, and negotiation of favorable terms with buyers or tenants.
As you can see, OCR contract data extraction automates tedious tasks and speeds up manual data entry. The perfect final addition is to integrate OCR contract findings with your CRM.
Here are step-by-step instructions that explain the work of OCR contract data extraction.
To start the OCR contract data extraction, one must upload a document or an image. Note that the decent quality of the file is important. OCR usually pre-processes files and increases recognition accuracy.
The OCR contract extraction software retrieves data from various types of commercial real estate documents, including:
In the preprocessing stage of OCR contract data extraction, the focus is on preparing documents for accurate data extraction. Please note that initially, physical contracts are scanned into high-quality digital formats.
The OCR preprocessing steps involve:
Once the image is preprocessed and cleaned, OCR contract data extraction is applied to identify relevant document sections, from commission rates and client details to contractual terms.
The OCR contract extraction keeps files structured. The technology dissects the document into different parts to locate important characters or identifiers, ensuring accurate text recognition.
Performing these preprocessing steps, OCR contract data extraction effectively prepares the document for the subsequent phase of data extraction. This makes it easier for real estate brokers and firms to smoothly retrieve crucial contract information.
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Once the documents are prepared, OCR contract data extraction compares each part of the text to a database of known characters. It figures out which letter or number each part represents.
This step is like matching puzzle pieces – the software looks at the shapes of the letters and numbers to understand them. It helps to recognize different writing styles, like fancy fonts or handwritten notes, and pick out important details like dates, numbers, and amounts accurately.
In general, OCR contract data extraction can extract the following data:
During the OCR contract data extraction process, it’s crucial to identify uncertain elements for maintaining data accuracy.
AI-powered OCR contract extraction tools excel at identifying ambiguous elements in analyzed documents, such as:
When the OCR contract extraction system detects these uncertainties, it alerts the user and highlights the areas that need validation.
In real estate contracts, where accuracy is crucial due to legal and financial implications, this approach greatly enhances reliability. By addressing potential inconsistencies in real-time, OCR contract extraction tools optimize the data entry process and prevent costly mistakes, ensuring that all contractual information is precise and trustworthy.
In the postprocessing stage of OCR contract data extraction, the following key steps are performed to ensure accuracy and usability of digitized documents:
Once OCR contract extraction recognizes each character, it turns them into text that computers can understand. This makes it simple to store and manage the documents. In practical terms, if your company’s workflow mandates contract approval checks, the system quickly identifies who needs to receive these documents and where they should go. This makes it easy to find and analyze the documents when needed.
In essence, postprocessing ensures that the digitized contract documents are accurate, well-organized, and easy to access for efficient management and analysis.
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At the final stage of OCR contract data extraction, you can add the retrieved data directly into your CRM. Additionally, you can convert extracted data into downloadable formats like PDF or XLS for future use. The Ascendix team can talk the technical talk and show you how OCR contract data extraction automates the manual workflow.
Book your free consultation today and explore how we can automate your contract data entry processes together.
AI Data Entry Tool by Ascendix
OCR contract data entry and manual data entry are two methods utilized for processing critical contract data in real estate. While the latter has been the traditional approach, OCR, an advanced competitor, offers benefits such as improved accuracy, faster processing, and cost-effectiveness. Below, we’ll compare OCR contract data extraction and manual data entry, focusing on how each method impacts brokers, investors, and realtors.
| Aspect | OCR Contract Data Entry | Manual Data Entry |
|---|---|---|
| Accuracy | Advanced algorithms that interpret text with fewer errors compared to human data entry, which is prone to mistakes. | Relies on human input, making it susceptible to errors due to typing or inputting inaccuracies. |
| Speed | OCR can process large volumes of data quickly, processing thousands of pages in minutes, whereas manual data entry can be slow and time-consuming, taking days or weeks to complete. | Manual data entry is limited by the speed at which the person can input data, making it slower compared to OCR, especially for processing large volumes of data. |
| Cost | While OCR requires an initial investment in software and hardware, the ongoing costs are minimal. | Manual data entry can incur higher costs due to labor expenses, training, and potential errors, making it less cost-effective compared to OCR in the long run. |
OCR’s smart technology guarantees accurate results, speedy data processing, and long-term cost savings, making it the go-to option for reliable contract data management that’s both efficient and dependable.
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Nevertheless, OCR contract data extraction has some limitations to be aware of. For example, as the OCR technology relies on pattern recognition of scanned text, factors as image quality or document formatting can impact accuracy.
Integrating AI into the OCR system can decrease the impact of OCR limitations on the outcome. AI will flag the parts that cause uncertainties or do not fit into the context for further human review. As a result, contextual awareness allows AI-OCR solutions to achieve far greater accuracy than traditional OCR alone.
OCR has been a staple in contract management for many years, providing the ability to scan and convert paper documents into digital text. While this has significantly streamlined document handling and storage, the advent of AI and Natural Language Processing (NLP) has taken this technology to the next level.
With AI and NLP, the process goes beyond simple text recognition. The document is not just scanned; AI literally understands the content. This means:
Ascendix has been a leader in business automation since 1996, with extensive experience in the real estate industry spanning over two decades. Over the years, we have closely monitored the evolution of AI technology and have specialized in property technology development and developed our own contract abstraction framework tailored specifically for real estate businesses. This means you won’t need to start from scratch with development or rely on generic tools that may not meet the specific needs of real estate documents.
Why choose Ascendix as your partner for contract data extraction?
How Ascendix can help you in contract data extraction:
Book a free consultation today to explore how we can help you automate your contract processing workflows.
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Contract management uses OCR technology within specific software. OCR contract management extracts the key data from scanned or digitally uploaded contracts. Incorporating OCR contract management allows real estate professionals to efficiently index, search, and report on contract information.
Retrieve, summarize, highlight the crucial data and more with contract abstraction tools. You can easily outline, find, and work with the key information in the contract documents, such as essential terms & conditions, timelines, clauses, obligations, etc.
Darina is an expert in property and AI technology. In her content, she shares insights on how technology can optimize real estate workflows, along with proptech news and handy resources.
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