Critical Clauses

You can define critical clauses for all of the options and clauses stipulated in the lease that have specified dates. If a clause does not have any specific dates related to it, you can record it in the Clauses tab.

Once the notice dates are reached for a critical clause, it appears in the Action Center.

By default, the application has certain critical clause types (such as Option to Expand, Option to Renew, and Option to Terminate), but additional types can be added in Admin > Picklist Management > Lease > Critical Clause Type.

To modify or delete an existing critical clause, click in the Actions menu and select the required action.

To add a critical clause:

  1. Click Main > Leases in the application menu and open the required lease.
  2. Click the Critical Clauses tab.
  3. To add and define a critical clause, click to open the Create Critical Clause Type window.
  4. Select a Critical Clause Type.
  5. Click Not Applicable to mark this critical clause as not applicable to the lease. If this switch is enabled, you will be unable to define the critical clause. This option can be enabled or disabled at any time while the lease status is "Draft".
  6. Click Save. The critical clause type appears in the Critical Clause Type table.
  7. In the table, under the required critical clause type, click .
  8. Enter a Rent or Cost.
  9. Optionally select an Exercise Method:
    • Automatic Exercise: To automatically exercise the current critical clause on the Notification Date.
    • Automatic Exercise & Renewal: To automatically create a lease version with the critical clause exercised, and add a future critical clause for the next period (based on Date From and Date To field inputs). The lease version must be manually activated.
    • Manual: To manually exercise the critical clause.
  10. In the Exercised field, select whether this critical clause will be exercised.
  11. If required, set the date range for the critical clause in the Date From and Date To fields.
  12. Enter a Notification Date for the Critical Clause. A notification regarding your critical clause will appear in the action center reminding you that your critical clause is coming to term, and if an email server is configured, you will get notifications by email.
  13. Optionally enter an Early Notice (the earliest date you will notify the landlord that you will exercise the critical clause) or a Latest Notice (the latest date you can notify the landlord if you are exercising the critical clause or not).
  14. Add any additional information and any related notes.
  15. Click Save.

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