Leveraging GenAI to Draft a Residential Property Lease
Three Ways For Legal Professionals To Use AI in Your Law Practice To Improve Productivity -- PART 1 DIRECT DRAFTING
In an era where technology continually reshapes professional landscapes, the legal field stands on the brink of transformation. The advent of Generative AI and its wide accessibility has introduced a new horizon for efficiency and innovation. We hear so much about what this technology can do for us as lawyers, but not nearly enough about how to actually use GenAI. In this three-part article. I’ll show you three ways to draft a residential property lease using GenAI.
Document generation represents a prime area for this technology's application in your law practice. For purposes of this article, I’ve employed ChatGPT 4 as my GenAI platform. The same approach will work with other platforms. The important thing is that using AI, blending traditional legal expertise with cutting-edge AI capabilities will transform your practice, making you more productive and efficient
In this 3-Part Article we will go through how to use three different methods to produce a residential lease agreement using AI:
Part 1. Direct drafting the lease agreement in ChatGPT
Part 2. Iterative Collaboration
Part 3. Mirroring an existing lease agreement.
As lawyers we are known for liking to be in control. This resonates with me, as I’ve learned to rely on my judgment. I like to think for the most part I am aware of what I’m capable of, and what I need help with. I cringe when I see lawyers who get sanctioned over innocent mistakes. In recent months we’ve seen several examples of lawyers who have used AI without sufficiently understanding it, and have been sanctioned. The more you use AI, the more you will understand it and its uses. And the more familiar you are with it, the less likely you are to be caught in a pitfall for using it inappropriately.
And that’s where AI For Lawyers comes into play. We’ll demystify using AI in various different ways, starting with drafting a residential property lease.
METHOD 1 -- DIRECT DRAFTING WITH YOUR AI MODEL
This approach involves leveraging your AI Model to draft a lease from scratch. Start by providing the AI with a comprehensive overview of your requirements. Type the specifics into your user interface. Information such as the duration of the lease, whether pets are allowed, any additional rental fee for pets, the security deposit, the jurisdiction where the property is located, special requirements for things like association rules, late fees, inspection of the property, any jurisdiction-specific legal mandates, any particular clauses you deem necessary, and the property details. Your GenAI model can then generate a draft lease agreement that adheres to these guidelines.
Advantages:
Efficiency: Quickly produces a foundational document that covers general lease aspects.
Customization: Tailors the lease to specific state laws and property details from the outset.
No Original Document Required: You will draft a document from start to finish, so you do not need to have a solid document to start with.
Disadvantages:
This could require a significant amount of your time drafting. However, it can perhaps get you to a working draft. In addition, you will then have a draft that you can refine for future needs.
Best For:
This method suits those looking to generate a comprehensive document rapidly, serving as a starting point for further refinement.
Here’s What That Process Might Look Like:
ME: Hi I am drafting a lease for a condo. The address is 555 Anywhere Street, Grimes IA 50111. Since it is in Iowa, I need it to be in the format typical for Iowa, if you know what that is. The condo has 3 bedrooms, 2 bathrooms, and includes a washer and dryer. And it includes a 1 car garage. Please leave a blank space for the monthly rental amount, and the security deposit amount. Please include a clause that no pets are allowed. It should also state that tenants are responsible for the utilities, and will need to switch all utilities to their names. Please also leave blank spaces for the start date and end date of the lease. Please include a section with several blank lines for a list of every person who will be living in the unit. Also include a signature line for Tenant(s). The Property is owned by XYZ Properties LLC, so please also include a line for a signature by XYZ Properties' representative, Amy Swaner.
ChatGPTBelow is a draft lease agreement tailored to the specifications for a condo in Iowa, including details about the property, tenant responsibilities, and relevant clauses. Please review and adjust according to your specific legal requirements or consult with a legal professional to ensure compliance with local laws and regulations.LEASE AGREEMENTThis Lease Agreement ("Agreement") is made effective as of ________ (the "Effective Date"), by and between XYZ Properties ("Landlord"), and ________________________________________________________________________ ("Tenant(s)").PROPERTY ADDRESS: 555 Anywhere Street, Grimes, IA 50111 ("Property").1. LEASE TERM: The lease begins on ________ (the "Start Date") and ends on ________ (the "End Date").2. RENT: Tenant agrees to pay the Landlord a monthly rent of $________, payable on the first day of each month. The first month's rent is due upon the execution of this Agreement.3. SECURITY DEPOSIT: Tenant agrees to pay a security deposit of $________, due upon execution of this Agreement. The security deposit will be returned within 30 days after the Termination Date, subject to the condition of the Property.4. PROPERTY DESCRIPTION: The Property is a condo with 3 bedrooms, 2 bathrooms, and includes a washer, dryer, and a 1 car garage.5. UTILITIES: Tenant is responsible for transferring all utility accounts into their name(s) and is responsible for all utility charges, including but not limited to electricity, gas, water, sewer, trash, and internet services.6. NO PETS: No pets are allowed on the Property at any time.7. OCCUPANTS: The Property shall be occupied strictly by the following individuals:8. MAINTENANCE AND REPAIRS: Tenant agrees to keep the Property clean and in good condition and will notify the Landlord of any necessary repairs.9. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa.10. SIGNATURES: This Agreement, entered into at Grimes, IA, is signed on the date first above written.Tenant(s) Signature: __________________________________ Date: __________Landlord's Representative Signature: Date: __________Please ensure that all blank spaces are filled out accurately and that both the Tenant(s) and the Landlord's representative review all sections carefully before signing. This draft is a basic template and may require adjustments based on specific needs or legal advice.________________________________________________I’m guessing you would agree this is pretty bare-bones. It has saved me time (or the time of my legal assistant) in preparing a draft, but there are a couple of glaring errors – when was the last time you drafted a contract without an integration clause? I could have given it more specific details. I could also tell it that every time I draft a contract, I want an integration clause, and time is of the essence clause. So let’s do that.
ME: For the draft of the lease that you gave me, could you please add an integration clause. I would also like a "time is of the essence" clause. Please include an integration clause in every contract that I ask for your help drafting. And if the contract includes real property, please also always add a "time is of the essence" clause. Let me know if you are not aware of what something I've asked for is. Please provide a new draft of the lease with these additional clauses.
ChatGPTCertainly! Below is the revised draft of the lease agreement for the condo in Iowa, now including an "Integration" clause and a "Time is of the Essence" clause as per your request. These additions will ensure the agreement is comprehensive and aligns with common contractual practices.LEASE AGREEMENTThis Lease Agreement ("Agreement") is made effective as of ________ (the "Effective Date"), by and between XYZ Properties LLC ("Landlord"), and ________________________________________________________________________ ("Tenant(s)").PROPERTY ADDRESS: 555 Anywhere Street, Grimes, IA 50111 ("Property").1. LEASE TERM: The lease begins on ________ (the "Start Date") and ends on ________ (the "End Date").2. RENT: Tenant agrees to pay the Landlord a monthly rent of $________, payable on the first day of each month. The first month's rent is due upon the execution of this Agreement.3. SECURITY DEPOSIT: Tenant agrees to pay a security deposit of $________, due upon execution of this Agreement. The security deposit will be returned within 30 days after the Termination Date, subject to the condition of the Property.4. PROPERTY DESCRIPTION: The Property is a condo with 3 bedrooms, 2 bathrooms, and includes a washer, dryer, and a 1 car garage.5. UTILITIES: Tenant is responsible for transferring all utility accounts into their name(s) and is responsible for all utility charges, including but not limited to electricity, gas, water, sewer, trash, and internet services.6. NO PETS: No pets are allowed on the Property at any time.7. OCCUPANTS: The Property shall be occupied strictly by the following individuals:8. MAINTENANCE AND REPAIRS: Tenant agrees to keep the Property clean and in good condition and will notify the Landlord of any necessary repairs.9. INTEGRATION CLAUSE: This Agreement constitutes the entire agreement between the parties pertaining to its subject matter and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written, of the parties. No amendment or modification of this Agreement shall be binding unless in writing and signed by both parties.10. TIME IS OF THE ESSENCE: Time is of the essence in this Agreement. All deadlines and time frames specified in this Agreement shall be strictly adhered to by the parties.11. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of the State of Iowa.12. SIGNATURES: This Agreement, entered into at Grimes, IA, is signed on the date first above written.Tenant(s) Signature: __________________________________ Date: __________Landlord's Representative Signature: Amy Swaner, for XYZ Properties LLC Date: __________This updated draft includes both the "Integration" and "Time is of the Essence" clauses as requested. Remember, it's important to review the draft with a legal professional to ensure it meets all legal requirements and fully protects your interests._________________________________________________I love that ChatGPT (Open AI)’s lawyers are worried about legal liability, making sure to tell me to talk to a lawyer. I can respect that.
This should get you started on using this method. Remember this was just a brief example. Just like I asked for integration and “time is of the essence” clauses, you can ask for a number of other clauses. You can either ask your AI tool to draft those clauses, or you can take over drafting from here and add in the provisions you feel are missing.
Also keep in mind that you can even copy and paste your final draft into your GenAI tool and ask it to check for spelling, grammar, or if it’s missing any important clauses. Although you cannot rely completely on this method—no technological solution will absolve your obligation to produce high-quality legal work—I’ve started doing this for all my writing.
Check back for Part 2 of this Article.