Works should not start yet.
Without written consent, use rules and risk allocation, works should not begin. Document condition, keys, insurance and allowed measures.
Renovating before registration requires clear rules on keys, consent, insurance, cost risk and reversal if completion fails.
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.
Many buyers want to start renovation immediately after signing. Legally, this is sensitive if registration has not yet occurred or the purchase price has not yet been released.
The contract must then clarify who receives possession, who bears damage, which works are allowed and what happens if the purchase is not completed. Without these rules, the buyer invests in a property without secured ownership.
This article deals with the pre completion investment scenario. It does not replace building law or technical project review.
Two questions show whether documents and contract wording fit together.
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Keys alone do not allow construction works.
Without written consent, use rules and risk allocation, works should not begin. Document condition, keys, insurance and allowed measures.
If consent, insurance, cost consequences and reversal are regulated, the contract can permit a controlled start. Price release and land register completion still need protection.
Anyone investing before registration needs a rule for failed financing, approvals or land register completion. Otherwise costs and works become dispute prone.
Before registration, the buyer is not yet entered as owner. If works start anyway, possession, investment and acquisition of ownership become mixed.
The article on early key handover deals mainly with possession and use. Here the additional issue is investment risk.
Permission should not be general. The contract should describe allowed works, access, liability, site safety and any duty to undo changes.
In apartment ownership, additional consents may be needed. See renovation plans when buying an apartment.
Renovation works may damage the property, neighbouring areas or common parts. The contract should say who insures, who is liable and who bears consequential damage.
The link between benefits, burdens and risk is explained in risk transfer in the purchase contract.
If financing, approval or land register completion fails, it must be clear whether investments are compensated, removed or taken over. Without reversal wording, value and costs become disputed.
Conditions precedent may help. See conditions precedent.
The overview shows which points should not remain open before price release.
| Point | Rule | Risk without wording |
|---|---|---|
| Access Keys and use scope | Unauthorised use | |
| Works Permitted measures | Dispute over changes | |
| Insurance Damage and liability | Costs remain open | |
| Failure Undoing or compensation | Investment lost |
The concrete contract solution depends on the property and available documents.
Careful: The earlier the buyer invests, the more precise the contract must be. A simple key protocol is not enough.
Practical point: Before works start, photographs, handover condition, insurance cover and written consent should be available.
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Only if the contract or a separate agreement expressly allows it. Key handover alone does not automatically permit works.
This must be regulated expressly. Without clear allocation, liability, insurance and consequential costs may be disputed.
The contract should regulate compensation, removal or takeover of investments. Otherwise it remains open who bears the cost.
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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