Avoid Costly Risks: The Importance of a Key Handover Agreement When Buying Property in Curaçao

A key handover agreement when buying property in Curaçao may seem like a simple formality, but in reality, it’s an essential document that protects both the buyer and seller from serious legal and financial risks.

When purchasing a home, it’s tempting to receive the keys before the official transfer of ownership at the notary. You might want to start cleaning, furnishing, or renovating early. However, early key handover—also known as early possession—can lead to major problems. Without clear written terms, a small misunderstanding can result in significant costs or even legal disputes.

In this article, we’ll explain exactly what a key handover agreement is, why it’s common practice in Curaçao, and how to draft it correctly to avoid unnecessary risks.

What Is a Key Handover Agreement?

A key handover agreement, sometimes referred to as an early possession agreement, is an additional legal contract made after signing the purchase agreement but before the official property transfer at the notary.

It allows the buyer to take possession of the property—receive the keys—before the deed of transfer is executed.

This means that the buyer can access and use the home, while the legal ownership still belongs to the seller until the notary finalizes the transaction.

Without such an agreement, there is a legal “gray area.” Questions arise such as:

Who is responsible for damage to the property?
Who pays for utilities or maintenance costs?
And what happens if the sale doesn’t go through after all?

A properly drafted key handover agreement clearly defines each party’s rights and responsibilities, preventing misunderstandings and potential claims.

Why Is This So Common in Curaçao?

In Curaçao, early possession occurs quite frequently—especially with vacation homes and second residences. Many of these properties stand empty before transfer, so giving the buyer early access often seems harmless.

Buyers often wish to:

• clean or repaint the property before moving in,
• arrange deliveries or renovations,
• or start decorating in advance.

For the seller, it may appear as a small favor: “The purchase contract is already signed, what could go wrong?”
But until the notarial transfer takes place, the seller remains the legal owner and therefore legally responsible.

Without a formal agreement:

• the buyer could damage the property,
• the deal might fall through,
• or an insurance company could refuse to cover damages.

In short: while common in Curaçao, early key handover is legally risky without a clear written agreement.

The Risks of Early Key Handover

Allowing the buyer early access to a property can lead to serious problems for both sides.

Here are the most common risks:

• Property damage: If a fire, flood, or other damage occurs, who is liable? The buyer is using the property, but the seller still owns it.
• Liability: If someone gets injured on the premises, the current legal owner (the seller) may be held responsible—even if the buyer has already moved in.
• Insurance issues: Most home insurance policies only cover damage while the insured remains the legal owner. Insurers may refuse claims if the buyer is already in possession.
• Utility bills and taxes: Who pays for electricity, water, and property tax before the official handover?
• Failure to complete the sale: If the buyer withdraws or fails to secure financing, the seller is left with a property that’s been occupied or altered.

A key handover agreement defines who is responsible for each of these points—protecting both parties in advance.

What Should a Key Handover Agreement Include in Curaçao?

A well-drafted key handover agreement sets out clear, legally binding arrangements between the buyer and seller.
In Curaçao, it’s often prepared by a licensed real estate agent or notary, familiar with local real estate law.

The key elements to include are:

• Date of key handover: The exact date and time when the buyer receives access to the property.
• Use of the property: What the buyer is allowed and not allowed to do, such as light cleaning, painting, or minor repairs. Major renovations are typically not permitted.
• Costs and utilities: From which date water, electricity, maintenance, and property taxes become the buyer’s responsibility.
• Liability and insurance: Which party is liable for damage, accidents, or losses during the interim period.
• Penalties: Financial consequences if either party breaches the agreement.
• Termination: Procedures to follow if the sale is canceled or delayed.

Tip: Always include a clause requiring the buyer to take out temporary liability and property insurance during this early access period.

What Can Go Wrong Without a Key Handover Agreement?

There are countless real-life examples in Curaçao of what can go wrong when buyers and sellers skip this step.

• Buyer loses financing: The buyer gets the keys, but the bank refuses the mortgage. The seller is stuck with a property already accessed by someone else.
• Unauthorized renovations: The buyer starts painting or remodeling without consent, causing damage not covered by insurance.
• Delays or unexpected events: The buyer becomes ill or even passes away before the transfer—yet the property has already been occupied.
• Insurance disputes: The seller’s insurance refuses to pay because the buyer was already living in or using the property.

Such cases can quickly escalate into legal disputes, costing thousands of guilders or dollars. A written agreement prevents this.

The Safest Solution for Both Parties

The simplest way to avoid problems is also the most effective:
the legal transfer and physical handover should occur on the same day.

That means:

• the notarial deed is signed,
• payment is made in full,
• and then, the keys are officially handed over.

If early access is unavoidable, make sure to sign a formal key handover (early possession) agreement.
Always have it drafted or reviewed by a qualified notary or real estate professional in Curaçao to ensure compliance with local law and insurance terms.

Checklist for a Safe Early Handover

1. Always sign a written key handover or early possession agreement.
2. Clearly define what the buyer can and cannot do inside the property.
3. Specify who is responsible for potential damage or loss.
4. Ensure both parties have adequate insurance coverage.
5. Include a penalty clause for breaches of contract.
6. Schedule a final inspection before the hand over of the keys.
7. Seek professional advice from a local Curaçao real estate expert.

Frequently Asked Questions About Key Handover Agreements in Curaçao

1. What is the purpose of a key handover agreement?
It defines each party’s rights and responsibilities before the official property transfer. It clarifies liability, costs, and permitted use of the property.

2. Is a key handover agreement mandatory in Curaçao?
It’s not legally required, but highly recommended. Without it, buyers and sellers face potential financial and legal risks if something goes wrong.

3. Who prepares the agreement?
Usually a real estate agent or notary public in Curaçao drafts the agreement to ensure it aligns with local real estate and insurance law.

4. Can the buyer renovate before transfer?
Only if explicitly allowed in writing. Typically, buyers may clean or furnish but cannot make structural changes before official transfer.

5. Who is liable for damage before the handover?
Without an agreement, the seller remains liable as the legal owner. With one, liability can be properly assigned to the buyer.

6. What happens if the sale falls through?
The agreement will specify how keys are returned, how damages are handled, and whether penalties apply.

Conclusion: Don’t Take Chances With Early Key Handover in Curaçao

A key handover agreement when buying property in Curaçao is not just a formality—it’s essential protection for both sides.
It prevents disputes, clarifies obligations, and ensures a smooth and safe transaction.

Always consult an experienced notary or real estate professional to prepare or review your agreement and guarantee that your property transaction is legally sound and risk-free.

Need Expert Help?
If you’re planning to buy or sell property in Curaçao and want professional guidance, contact International Fine Living Curaçao.
We ensure everything is handled correctly—from the purchase contract to the key handover.

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