Digital Signatures Eliminate Fraud and Misunderstandings in Lease Deals

Technological advances that provide security and convenience for users are being made in leaps and bounds, and even the traditional commercial real estate industry is benefitting—most recently, from digital signature software. Traditional methods of executing leases and related documents—that is, ink-on-paper signatures—leave the door open for potential misunderstandings and even fraud. Digital signatures are a game changer—protecting both office and retail owners and tenants from the inherent flaws of traditional lease signing.

But don't make the mistake of completely eliminating the "human" aspect of your lease deals. Meetings can be one way to build trust. The nature of the landlord-tenant relationship is unique because owners want tenants to have a level of respect for their space and take care of it, and tenants rely on the trustworthiness of the owner of the space where the tenant is conducting their livelihood. There are high stakes for each party, but the bond that can be built through face-to-face meetings that allow each party to get a feeling about the intentions of the other are important.

The safest and smartest way to handle a commercial lease is to create a hybrid deal where documents themselves are preserved digitally online, and owners and tenants have as many face-to-face meetings as geography and budgets allow. For what you need to know about using the digital signature method for your leases, and how you can convince your prospective tenants to use it in your deals with them, see "Use Digital Signatures to Streamline Lease Deals," available to subscribers here.