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Focus area · Property purchase

Handover & possession.

Between signing the contract and ownership in the land register lies the handover. We explain when possession, use and risk pass and how to secure the effective date, condition and protocol.

BRANDAUER Rechtsanwälte
Your law firm

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.

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In a property purchase three steps must be distinguished. The purchase contract forms the title, that is the legal basis. You acquire ownership, however, only with registration in the land register as the mode of acquisition. Separate from this is the actual, physical handover, by which possession and use of the property are granted to you.

This distinction has tangible consequences. With handover you hold the property, draw its benefits and, from that moment, also bear the risk of accidental loss or deterioration. You only become owner in the legal sense once the land register records your registration. Anyone who confuses the two easily overlooks the necessary insurance cover or the correct accounting date.

This page orders handover, possession and the passing of risk and shows what matters for the protocol, the effective date and the vacated condition. The guide below helps you assess your situation, but does not replace an examination of the individual case.

Assess your handover

Where do you stand between contract, handover and ownership?

Answer one or two questions about status and condition. You will receive a first, non-binding assessment of your situation.

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01 Question 1

How far has your property purchase progressed?

In a property purchase three steps must be distinguished: the contract as the title, the physical handover (transfer of possession) and the registration of ownership in the land register as the mode of acquisition.

All paths at a glance

Overview of all answers.

01

The handover is well prepared. Record the condition cleanly on the effective date.

If the effective date, the vacated and unencumbered condition and a handover protocol are agreed, the essentials are covered. With handover, possession, use and the risk of accidental loss pass to you; ownership only passes once you are registered in the land register. Check that from the effective date benefits and burdens, that is operating costs, charges and any income, are accounted for correctly.

At handover, document meter readings, keys and the documents handed over. Clarify whether part of the purchase price is retained until proper handover or steered through the escrow account.

02

Before handover, open points on condition, encumbrances and the effective date must be clarified.

If the vacated or unencumbered condition is not secured, later disputes about the condition at handover may arise. Agree a clear effective date, the vacated and, where desired, unencumbered condition and a handover protocol. Only with handover do possession, use and the price risk pass to you; ownership only with registration.

It is often sensible to retain part of the purchase price until proper handover or to tie payment under the escrow arrangement to the handover. Have the wording checked before signing.

03

With handover you have possession and use; ownership follows with registration.

After handover you hold the property as possessor and draw its benefits; you become owner only with registration in the land register. From handover you bear the risk of accidental loss or deterioration, which is why seamless insurance cover matters.

Make sure benefits and burdens are accounted for correctly from the agreed effective date and that registration is obtained promptly. Insist on the full handover of keys and documents and on the documented remedy of any defects recorded in the protocol.

04

If handover fails, default can trigger separate rights and a leverage retention.

If handover is delayed or fails to happen, the defaulting party falls into default. As long as the property is not handed over, possession, use and the price risk have not passed to you. Set a reasonable grace period and, where the contract provides for it, retain part of the purchase price until proper handover or steer payment through the escrow arrangement.

Depending on the agreement, performance with the consequences of default or a withdrawal may come into play. The requirements must be examined carefully in the individual case before you take a step.

The key concepts at a glance

Handover, ownership, risk, protocol and effective date

Handover and acquisition of ownership are two different steps in a property purchase. The overview below contrasts the central concepts and shows what to watch for in each case.

Central concepts around handover and possession in a property purchase
Element Meaning What to watch
Title and mode Actual handover vs. registration Transfer of possession grants possession and use; ownership only arises with registration in the land register Keep both steps clearly separate and secure both in the contract
Risk Passing of risk With handover the risk of accidental loss and deterioration passes to the buyer Ensure seamless insurance cover from the moment of handover
Evidence Handover protocol Records condition, meter readings, keys, documents handed over and any defects found Sign it jointly and provide for it as part of the contract
Accounting Effective date for benefits and burdens From the effective date you bear operating costs and charges and receive any income such as rent Set the effective date clearly and document the apportionment
Condition Vacated and unencumbered condition The property must be handed over vacated and, where agreed, free of registered encumbrances Retain part of the price until proper handover or tie it to escrow

The overview offers a first orientation. The specific structuring of the effective date, condition and escrow handling belongs in the contract and does not replace an examination of the individual case.

Possession and ownership are not the same

With the actual handover you receive possession and use of the property: you may enter, live in or let it. You do not, however, become owner in the legal sense by this alone. The purchase contract only provides the title; ownership passes only with registration in the land register, the so-called mode of acquisition.

This separation protects you, provided it is reflected cleanly. Until registration, the escrow arrangement usually secures the purchase price. Anyone who knows the difference between the transfer of possession and the acquisition of ownership in the land register avoids false assumptions about their own legal position.

The passing of risk with handover

With handover the risk of accidental loss and accidental deterioration passes to the buyer (see sections 1048 to 1051 ABGB). If the property is damaged after handover without anyone being at fault, for example by a storm, the risk in principle falls on you as the purchaser, even though ownership is not yet registered.

This is why seamless insurance cover from the moment of handover is central. Clarify in good time whether existing building insurance transfers or must be taken out anew, and align the start of cover with the moment of handover.

Handover protocol and accounting date

A handover protocol records the condition of the property at the moment of handover: meter readings, keys handed over, documents provided and any defects. It creates evidential certainty and should be signed by both sides and provided for as part of the contract.

The effective date for benefits and burdens determines from when you bear operating costs and charges and receive any income such as rent. It is usual to tie this to the handover. A clear effective date avoids disputes about the apportionment of ongoing costs and income.

This page offers a general overview of the Austrian legal position (legal status June 2026) and does not replace advice in an individual case. The specific structuring of handover, effective date and escrow depends on the respective contract.

Frequent questions

Handover and possession.

Am I already the owner of the property after handover? +

No. With handover you receive possession and use, but ownership only arises with registration in the land register. The purchase contract only forms the title, registration the mode of acquisition. Until then, the escrow arrangement usually secures the purchase price.

Who bears the risk if damage occurs after handover? +

With handover the risk of accidental loss and deterioration passes to the buyer (sections 1048 to 1051 ABGB). Accidental damage after handover therefore in principle falls on you, even though ownership is not yet registered. For this reason, ensure seamless insurance cover from the moment of handover.

What is a handover protocol for? +

The handover protocol documents the condition of the property at the moment of handover, including meter readings, keys, documents handed over and any defects found. It creates evidential certainty for both sides and should be signed jointly and provided for as part of the contract.

What can I do if handover does not take place? +

If handover fails, the defaulting party falls into default. You can set a reasonable grace period and, where the contract provides for it, retain part of the purchase price until proper handover or tie the escrow payment to the handover. Depending on the situation, performance or withdrawal may come into play; the requirements must be examined in the individual case.

In depth

Concepts on this focus area

Transfer of possession

What the physical handover achieves and why it must be kept separate from the acquisition of ownership in the land register.

Handover protocol

Content and function of the protocol: condition, meter readings, keys, documents and any defects recorded.

Purchase price maturity

When the purchase price becomes due and how the escrow arrangement interacts with handover and registration.
Related topics

This might also affect you.

Escrow and purchase price

Secure handling of the purchase price through attorney escrow: escrow account, payout conditions and protection for buyer and seller.

Warranty and defects

Warranty when buying property, hidden defects, warranted qualities and dealing with clauses such as “bought as seen”.

Condominium and tenancy rights

Buying condominium property, parification values, the owners association and assumed tenancy and lease relationships.

Handover planned or watching the effective date?

In a property purchase, handover, the effective date and escrow are decisive. Call us directly or write to us, with a callback within one business day.

+43 662 6280000 [email protected] Book initial consultation (72 euros)
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BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg