Risks when buyers receive keys before registration and how the Austrian property purchase contract can secure use, costs and return.
BRANDAUER Rechtsanwälte
Salzburg law firm for real estate, property and corporate law
Every matter is handled by a coordinated team of lawyers, legal staff and specialists. In property purchase matters we look at the contract, land register, escrow and tax consequences together.
Buyers sometimes want to renovate, deliver furniture or use the property before registration. Early key handover is practical, but legally sensitive. The buyer is not yet registered owner, but may already carry costs and responsibility.
This post explains what should be regulated when use begins before land register registration. The focus is possession, risk, charges, insurance, rescission and escrow.
Early handover is not automatically wrong. It needs a clear agreement so a practical step does not turn into a dispute.
Answer two short questions on documents and the contract clause.
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Without the documents it is not possible to check whether the draft contract covers the issue properly.
First request the contract draft, current land register extract and property related documents. Without them it is not possible to assess reliably whether payment, handover and registration are safely prepared.
If documents and draft contract match, the starting point is better. Still review maturity, escrow, evidence, handover and consequences of delay.
If the point remains open, the contract should be tightened before signing. Depending on the issue, a condition, retention, withdrawal right, warranty or clearer maturity rule may be appropriate.
Signing the purchase contract prepares the acquisition, but does not complete it. Ownership passes only upon registration in the land register. Until then the seller remains registered owner.
If the buyer receives keys and use before that moment, there is an interim phase. It must be clear whether the buyer may only prepare, renovate, live there or rent out the property.
This distinction belongs in the contract or a separate handover agreement. A mere delivery of keys is not enough.
From actual handover, charges for electricity, heating, municipal costs or maintenance may practically move to the buyer. The contract must state from which date benefits, burdens and risk pass.
Insurance is especially important. If a fire or water damage occurs during the interim phase, the parties need to know which policy responds and who must notify the loss.
Read more in the post on benefits, burdens and risk transfer and on handover and possession.
The earlier use begins, the clearer the agreement should be.
| Point | Recommended clause | Risk if missing |
|---|---|---|
| Use Scope defined | Renovation, storage or living separated | Dispute over permitted use |
| Costs Cut off date named | Accounts remain clear | Open charges |
| Damage Condition recorded | Evidence of changes | Unclear cause |
| Insurance Cover checked before handover | Damage allocated | Coverage gap |
| Rescission Return rules agreed | Property can be returned | Investment without security |
Early use should not bypass escrow or registration.
Important: Early key handover does not replace registration or escrow release. Clarify condition, use and return before keys are delivered.
Every early handover should be documented in a protocol. It should list meter readings, keys, visible defects, inventory, photos and open works.
Return rules matter if the contract fails because financing, approval or another condition is not met. The agreement should state when the buyer leaves, who bears investments and in what condition the property is returned.
The post on the handover protocol for house and apartment purchases offers a practical starting point.
Only if the seller agrees and use, insurance, costs and return are clearly regulated.
No. Ownership is acquired only by land register registration.
Meter readings, keys, visible defects, inventory, photos, open works and the exact time of handover.
When buying property, the contract and the land register decide. Call us directly or send an email, callback within one business day.
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BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg
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+43 662 6280000