Possession day marks an exciting milestone in the real estate journey. This is the day when the buyer officially takes ownership of the property, completing all financial and legal requirements to finalize the transfer.

As a REALTOR^®, there are specific guidelines and responsibilities to follow for releasing keys on possession day to ensure a smooth and secure handover. Here’s what to keep in mind: 

1. Facilitating the key release process 
The buyer’s REALTOR^® is responsible for coordinating the key release with the seller’s representative, whether that’s the seller’s brokerage, the seller, or their lawyer. This step is essential to ensure compliance with legal and contractual obligations for transferring property access securely. 
 
2. Coordinating with the seller’s team 
Before handing over keys, the buyer’s REALTOR^® must obtain confirmation from the seller’s team authorizing the release. In some cases, the lockbox will still be on the property, allowing the buyer’s representative to access the keys after receiving permission. However, if the lockbox has already been removed, the keys will likely need to be picked up at the seller’s brokerage or lawyer’s office. 

3. Managing buyer expectations 
Buyers are understandably eager to enter their new home, but informing them of this process beforehand is crucial to avoid any last-minute disappointments. Letting them know that key release might require some coordination can help manage expectations and make the day smoother. 

Quick tip for seller’s agents

When receiving confirmation from the seller’s lawyer that keys are releasable, pay close attention to how that release is worded. In some cases, sellers might permit their lawyer to allow possession before noon. Still, in the majority of cases, the expectation is that the timing of the contract is followed. Jeff Kahane, with Kahane Law, shares that if the lawyer calls at 10 a.m. and says keys are releasable pursuant to the contract, then that calls for key release at noon. It is important to listen if they state that the keys are releasable at noon. If a seller’s agent is unsure whether buyers can take possession before noon because key release instructions are ambiguous, Jeff advises the seller’s agent to contact the lawyer to clarify. In addition, the seller’s agent can get written instructions from their own client to release the keys early. Given the risk of liability when releasing keys early, caution should always be used.

Once a seller’s agent has the clarity they need, that should be clearly communicated, preferably in writing, to avoid any misunderstanding by the buyer’s agent.

By following these steps and setting clear expectations, you can help make possession day a successful and memorable experience for your clients.

Article updated on October 31, 2024.