Possession Handover in an Apartment — A Complete Legal Guide for Buyer and Seller

What is Possession Handover in an Apartment?

Possession handover in an apartment is one of the most critical processes in a real estate sale transaction. It is the moment when the buyer receives physical and legal control of the property from the seller, marking the completion of the full transfer of ownership. This process does not occur in a single moment — it involves precise stages, legal and technical inspections, and agreements between the parties regarding the condition of the apartment and general obligations.

As a boutique law firm specializing in real estate and property law since 2008, we are constantly witnessing mistakes made at this stage of the transaction — mistakes that can cost the buyer substantial legal and financial expenses in the months or years that follow. Proper and lawful possession handover protects both parties.

Why is Legal Possession Handover Important?

Many treat possession handover as merely a technical formality — handing over keys, and primarily checking whether the apartment is clean and intact. However, from a legal standpoint, possession handover is the moment when the buyer transitions from "prospective buyer" to "full legal owner." At this point, the buyer assumes legal responsibility for any defect in the apartment, any unpaid taxes or maintenance fees, and any damage to the apartment that occurs after the handover.

A seller who did not properly clean the apartment or who left hidden defects in it can escape legal liability once the buyer signs the possession handover form. This is why thorough inspection and accurate documentation prior to handover are essential.

When Does Possession Handover Occur?

Typically, possession handover occurs on the date set in the purchase agreement — usually, the date when the legal transfer of the property to the land registry (registration of the property in the buyer's name) is nearly completed, or immediately after its completion. In some cases, possession handover can occur weeks or months before land registry registration, depending on the parties' agreement and "conditions precedent" in the contract.

Stages of Possession Transfer Process — From Start to Finish

The process of transferring possession of an apartment does not happen in a single moment. It involves defined stages, each of which carries legal and practical significance. Understanding these stages protects both buyer and seller alike.

Stage 1: Written Agreement on Transfer Conditions

Before any physical inspection, written agreement must be reached on the conditions under which the transfer will take place. This agreement is typically formalized in the purchase contract itself, but is often supplemented by a separate form or email correspondence between the parties' legal representatives. The agreement should include: exact date and time of transfer; a list of items remaining in the apartment (for example, oven, water heater, light fixtures); the expected condition of the apartment (cleanliness, repairs, furniture removal); which party is responsible for insuring the apartment until transfer; and any special conditions agreed upon between the parties.

Stage 2: Title Registry Inspection and General Obligations

The buyer's attorney (or the buyer themselves, if unrepresented) should obtain an updated copy of the title registry (Tabu) for the apartment. This registry presents all legal obligations imposed on the property — outstanding tax debts, unpaid management fees, liens (such as the seller's mortgage), or other legal notations. If obligations exist, possession transfer should be conditioned on proof that the seller has paid or cancelled them before transfer. This is a critical inspection, and if not conducted properly, the buyer may be registered as the "owner" of an apartment burdened by years of unpaid taxes or management fees.

Stage 3: Physical and Technical Inspection of the Apartment

This is the inspection most people are familiar with. This inspection should take place immediately before possession transfer, or one or two days before, to give the buyer an opportunity to request repairs if defects are found. A thorough inspection should cover:

• Engineering systems: Plumbing (water pipes, drainage), electrical (circuit breaker, outlets), heating and cooling (water heater, air conditioning, boiler).
• Walls, ceilings and floors: Cracks, moisture damage, mold, leaks from above or sides.
• Doors and windows: Proper opening and closing, sealing, broken glass.
• Kitchen and bathrooms: Leaking faucets, malfunctioning toilets, corroded cabinet doors.
• Furniture and items agreed to remain: Check that they are in the agreed condition.
• Legality inspection: If modifications have been made to the apartment (for example, adding a room or expansion), they should be documented in the title registry or official building permit.

It is advisable that the inspection be conducted in the presence of both parties (buyer and seller) or their representatives. Photographs should be taken of any defect found and documented in writing.

Stage 4: Recording Defects and Requesting Repairs

If defects are found during the inspection, the buyer should document them in an official form (often called a "transfer report" or "defects report"). This report should be delivered to the seller, usually through their attorney, and repairs or monetary compensation should be requested. The seller may agree to repair, offer monetary compensation, or object. If there is disagreement, negotiation or, in serious cases, legal intervention may be required.

Stage 5: Cleaning and Furniture Removal

Before possession transfer, the seller must clean the apartment and remove all their furniture and personal items, unless otherwise agreed in writing. "Reasonable cleaning" is a standard legal condition — it does not mean the apartment must be perfect, but it should be free of garbage, excessive dust, and waste. If the seller has not cleaned properly, the buyer may agree to receive the apartment "as is" in exchange for a monetary deduction ("cleaning discount"), or refuse transfer until the apartment is cleaned properly.

Stage 6: Signature on Possession Transfer Form

Once all the above matters have been resolved, the buyer and seller (or their representatives) sign an official possession transfer form. This form confirms that the buyer has received the apartment in certain condition at a certain moment. This signature is a legal signature, and in most cases is binding and difficult to reverse. Therefore, it is crucial that the buyer not sign the form until they are absolutely certain that the apartment is in the agreed condition.

Stage 7: Key Transfer and Access

Following signature on the possession transfer form, the seller transfers all keys (apartment, mailbox, storage, parking, etc.) to the buyer. The buyer assumes full control of the apartment — they become responsible for insurance, maintenance, and payment of management fees and taxes from this date forward.

Essential Inspections Before Possession Transfer

Certain inspections must be conducted before possession transfer to ensure the buyer understands the apartment's condition and all legal implications. Issues not properly inspected can lead to serious legal claims months later.

Title Deed and Legal Conditions Inspection

Before delivery, the buyer's attorney should obtain the most current title deed (Tabo) of the apartment. This document presents all liens, obligations, and legal remarks encumbering the property. Examples of issues that may appear in the title deed: the seller's mortgage still not cancelled (delivery must be conditioned on mortgage cancellation); accumulated tax debt over years; unpaid maintenance fees; or a legal notation due to a claim filed against the seller. If such obligations exist, possession transfer must be conditioned on proof that the seller has paid or cancelled them before delivery.

Maintenance Fees and Taxes Inspection

The apartment's maintenance fee balance throughout all years the seller owned it must be checked. Unpaid maintenance fees can be a legal debt that transfers to the buyer. Similarly, all accumulated taxes (appreciation tax, acquisition tax imposed due to apartment modifications) must be verified as paid. The seller must prove he has paid all such obligations before delivery.

Building Legality Inspection

If modifications were made to the apartment (adding a room, expansion, changing internal layout, or upgrading infrastructure), verify that these modifications are legal and documented. This inspection should include checking the registration office for the existence of an official building permit and ensuring modifications are recorded in the title deed. If modifications were made without a permit, the buyer may be held liable — authorities may require removal of modifications or impose a fine.

Insurance Inspection

Until possession transfer, the seller (or his insurance company) is responsible for apartment insurance. After delivery, the buyer is responsible. Verify that the seller's insurance continues until delivery and that the buyer has purchased his own insurance effective from the delivery date. If there is a gap in coverage, the apartment may be exposed to risk.

Utilities Inspection (Electricity, Water, Gas, Telephone)

Verify that all utilities (electricity, water, gas, telephone, internet) are connected and legal. Check utility bills to ensure no unpaid debts exist. Issues such as illegal electrical wiring or broken water pipes can be costly to repair, and if not inspected beforehand, the buyer may encounter them only after delivery.

Documentation and Required Documents

The process of transferring possession of an apartment involves a substantial amount of documentation. These documents protect both parties and record all conditions, inspections, and agreements made.

Possession Transfer Form

This is the official form signed by the buyer and seller (or their representatives) at the time of possession transfer. The form documents the date and time of transfer, the condition of the apartment at the time of transfer, all items remaining in the apartment, and any special conditions. Signing this form is a legal signature and is typically difficult to reverse. Therefore, it is important that the buyer does not sign until he is completely certain of the conditions.

Inspection and Defects Report

Following a physical inspection of the apartment, a detailed report must be prepared of any defect found. This report should include a description of each defect, its location in the apartment, photographs if possible, and an estimate of the repair cost (if known). This report serves as a basis for negotiations between buyer and seller regarding repairs or monetary compensation.

Updated Taboo Certificate

The buyer's attorney should obtain the updated Taboo certificate of the apartment from the Land Registry Office. This document records all legal liabilities and liens on the apartment. It is important to keep a copy of this document, as it constitutes legal proof of all liabilities that existed at the time of transfer.

Proof of Liability Payments

If there were legal liabilities on the apartment (taxes, management fees, mortgage debt), proof must be obtained that the seller paid or canceled them before transfer. This proof can be bank receipts, letters from legal authorities, or confirmation from the seller's attorney.

Property and Management Documents

The seller must transfer to the buyer all relevant documents: the home page registered in the Taboo, agreements for services (electricity, water, gas), manuals for appliances (water heater, air conditioner, oven), insurance certificates, and documentation of any repairs or upgrades made to the apartment. These documents will help the buyer better understand the apartment and maintain it going forward.

Keys and Access

The seller must transfer to the buyer all keys: the apartment key, mailbox key, storage key (if it exists), parking key (if it exists), and any digital access (codes, passwords for control systems). The termination of this access must be documented in writing.

Comparative Table: Common Scenarios and Coping Methods

The above table presents common scenarios in which issues in the transfer of possession process have led to legal disputes. The best way to avoid these scenarios is through thorough inspection, accurate documentation, and written agreement on all conditions prior to signing the transfer form.

Practical Tips for Buyer and Seller

Tips for the Buyer

• Inspect the apartment before delivery: Do not rely solely on the seller or photographs. Inspect the apartment yourself (or with an architect or construction expert) and document all defects with photos.
• Obtain proof of debt payments: Request from the seller proof that all management fees, taxes, and other liabilities have been paid. Do not rely on verbal assurances alone.
• Review the land registry (Tabu) document: Confirm with your attorney that you have the most updated version of the land registry document and ensure there are no legal encumbrances on the apartment.
• Do not sign a delivery form until you are certain: Signing a delivery form is a legal commitment. Do not sign until the apartment is in the agreed-upon condition and all issues have been resolved.
• Receive all keys and documents: Ensure you have received all keys (apartment, mailbox, storage, parking) and all relevant documents (appliance manuals, insurance certificates, etc.).
• Transfer to your own insurance immediately: Ensure your insurance coverage begins at the moment of delivery. Do not rely on the seller's insurance.

Tips for the Seller

• Pay all debts before delivery: Do not leave management fees, taxes, or mortgage liabilities for the buyer. Pay or settle them before delivery and obtain proof.
• Clean the apartment properly: Clean the apartment thoroughly, remove all your furniture and personal items, and document the cleaning with photos.
• Disclose all known defects: If you are aware of any defect in the apartment (leaks, electrical issues, etc.), disclose it to the buyer in writing. Concealing a defect may lead to legal action.
• Transfer all documents: Provide the buyer with all relevant documents — land registry, insurance certificates, appliance manuals, etc.
• Document key delivery: Ensure the buyer has received all keys and document this in writing or with a signature on a delivery form.
• Agreement in writing on all terms: Before delivery, reach a written agreement with the buyer on all terms — apartment condition, items remaining, delivery dates, etc. Do not rely on verbal understandings alone.