Below is a list of commonly asked questions about the Closing Clarity Tool. If you don't see the answer to your question, please reach out to kwright@lssoftwaresolutions.com!
What is the Closing Clarity Tool Feature?
This new feature leverages Artificial Intelligence to read and interpret sales contracts that you upload. Its primary function is to quickly and accurately determine who is responsible for paying transfer taxes based on the terms outlined in the document – whether it's the buyer or the seller(split is not yet supported). This eliminates the need for manual review, saving you time and reducing errors.
How does the AI determine who pays transfer taxes?
The data model we use is/are trained on a vast dataset of real estate sales contracts and legal clauses. When you upload a contract, the AI uses Natural Language Processing (NLP) to understand the text, identify key entities (like buyer and seller), and locate specific clauses related to transfer taxes. It then interprets these clauses to determine the payment allocation.
Currently, the feature is designed to analyze standard real estate purchase contracts. We recommend uploading documents in common formats like PDF for optimal accuracy, but the feature can also support DOCX and TXT formats. We are also able to read addendums, so you can upload those now as well.
How accurate is the AI's analysis?
While our AI is highly accurate and continuously learning, it's important to remember that it's a tool to assist you. AI can significantly reduce human error and speed up the process, but human oversight remains crucial for legal interpretations. We recommend reviewing the AI's determination for the contracts uploaded.
What are the fees/taxes does this feature detect?
At this time we are only detecting transfer taxes and its variations as applicable to certain states. Please see below the fees that we detect as transfer taxes:
Deed Tax, Grantor Tax, Mortgage Intangible Tax, Mortgage Tax, Land Bank Tax, Mansion Tax, Deed Yield Tax, Mortgage Yield Tax, Deed Recordation Tax, Mortgage Recordation Tax, San Jose Real Property Transfer Tax, Sales Disclosure Tax, Luxury Tax
Will it auto populate the data fields?
No. You will need to click on “Export to Encompass” and it will export the transfer tax data to Encompass.
Does the cure guarantee apply to this feature?
Yes! The cure guarantee does apply when using this feature.
Is my data secure when I upload contracts?
Yes! Your data in secure within our system. We do not store the uploaded contracts in our system. We only store the file name, source text used, to determine who pays the transfer taxes, and the result generated.
Do I need EPC to use this feature?
Yes. We do require EPC to enable this feature on Encompass. The feature will not work within SDK.
Will my uploaded contracts be used to train the AI for other customers?
No. Your uploaded sales contract data and the resulting analysis are kept confidential and are not shared with other customers. While we may use anonymized and aggregated data (data stripped of any personally identifiable information) to improve the overall accuracy and performance of our AI models, your specific contract content will never be used for training purposes for other users.
Can we turn the feature on for only certain users?
No. At this time, we only have the ability to turn the feature on/off for the account.
Does this tool support addendums?
Yes! We do support addendums. If multiple contracts are uploaded, we will select the latest contract uploaded and all addendums uploaded.
Does the eFolder document containing the purchase/sales contract have to be named "Purchase Agreement" or can we customize the name of the document?
The eFolder is fully configurable. You are not restricted to the "Purchase Agreement" label; the tool can be mapped to recognize any file name used by your organization.
Will the tool work with any transaction type?
The tool will work as long as a sales contract exists in the eFolder for any transaction type.
Does this tool have support for terms like county taxes, city taxes or all transfer taxes as opposed to only specific terms like 'State - Deed Tax"?
Yes, we do support terms by jurisdiction. We are still working on support for the following term: "All Local Taxes".
Is there a way to trigger the same functionality to get the tool's recommendation via the API?
We are currently working on this and we will have an update for you very soon. Please reach out to support@lssoftwaresolutions.com to get the latest update on this feature.
What is your privacy policy?
Please refer to your sales contract that was signed between your company and Lodestar. If you would like a copy, please email billing@lssoftwaresolutions.com.
How much does this feature cost?
It is $2.00 per use for this feature. We are currently offering a one month free trial to our lender clients.
How do I get started with the AI Contract Analysis Feature?
