In a lease relationship, the moment at which the property changes hands is the source of the greater part of the disputes that arise. Where the parties separate without committing to writing the picture they saw at that moment, intractable arguments arise months later as to who caused the damage or on what date the keys were handed over. The key handover record is precisely the document that serves to fix that picture and to secure the position of both parties.
In this briefing note we examine the legal character of the record, the stage at which it should be drawn up, a model text that may be used in residential leases, and the procedure to be followed where the handover is carried out through a notary public.
Legal Character of the Key Handover Record
The key handover record is a document of ascertainment drawn up at the moment the leased property is transferred to the tenant or to the landlord, fixing in writing the conditions in which the handover took place. By means of the document, the physical appearance of the property at that moment, whether the keys were handed over in full, and the parties’ statements on these matters are all placed on record.
Viewed from a legal standpoint, the record performs the function of strong evidence in any contention that arises subsequently. Where a disagreement arises under such heads as allegations of damage, fixtures left missing, or the date on which the handover took place, the existence of the document becomes decisive for the purposes of proof. It is therefore important that the text be drafted free of vague expressions, in sufficient detail, and so as to bear the signature of both parties.
The Moment at Which the Record Should Be Drawn Up
The time at which the record is to be prepared is the moment the property actually changes hands. In practice that moment arises either at the stage where, the lease relationship having been established, the tenant moves into the property, or at the stage where, on expiry of the lease term, the property is given back to the landlord.
Carrying out the ascertainment simultaneously with the handover ensures that the state of the property at that moment is placed on record in full. Arguments over damage, deficiencies or the date of handover that might otherwise arise later are in this way forestalled from the outset.
Model Key Handover Record
Key Handover Record
This record has been drawn up between the landlord and the tenant for the purpose of ascertaining and reducing to writing the matters relating to the handover of the leased property.
At the moment of handover the property was inspected jointly by the parties; the condition of the floors, walls, doors and windows, together with the present state of the electricity, water and, where applicable, natural gas installations, was assessed. The fixtures present in the property and the damage and deficiencies ascertained have also been entered in the record.
The state of the property at the moment of handover having been examined jointly by the parties:
- Fixtures: ………………………………………………………..
- General condition of the property: …………………………………………
- Damage and deficiencies ascertained: …………………………………..
The parties accept that the property has been handed over and taken over in the condition set out above. It is accepted, declared and undertaken by the parties that the keys to the property were handed over in full on the date of handover specified.
This record has been prepared in two counterparts and signed by the parties after being read by them. …/…/…..
Landlord Tenant Signature
Carrying Out the Handover Through a Notary Public
The transfer of the keys may be carried out by means of a record signed by the parties, or equally through a notary public. Where there is contention between the parties, or where there is doubt as to proof of the handover, the notarial route constitutes the safer option.
Where recourse is to be had to this method, the tenant or the landlord applies to the notary public and notifies the position. The notary public may prepare a formal notice concerning the handover, or may place the parties’ statements on record in official form. The method most frequently preferred in practice is for the tenant to inform the landlord through a notary public that the tenant is ready to hand over the keys.
Should the landlord refuse to accept the keys, the tenant notifies the landlord by notice served through a notary public that the property has been vacated and that the tenant wishes to hand over the keys. At this stage it is possible to deposit the keys with the notary public, or to have readiness to hand them over officially placed on record before the notary public. The tenant is thereby placed in a position to prove that the vacation has been effected and that the obligation of handover has been performed.
Independent Legal Assessment
A significant proportion of disputes over the failure to return the deposit or over compensation for damage to the leased property stems from the moment of handover not having been documented. Where there is no concrete record on which the court can rely, the proceedings turn into an uncertain process conducted on the basis of witness statements and indirect presumptions. In planning the handover stage, we recommend that the following points be observed:
- Drawing up the record at the property itself and at the same moment as the handover
- Entering the meter readings in the text in figures
- Listing the fixtures individually with their quantities, rather than being content with general expressions
- Supporting the damage ascertained with dated photographs
- Signing two counterparts and leaving one copy with each of the parties
- Turning to the notarial route should the other party refuse to sign
Independent Legal provides advisory services and conducts disputes throughout the process, from the establishment of the lease relationship to the stages of vacation and handover.