Under the standard terms and conditions of an REIQ contract, a seller is required to deliver to the buyer at settlement the keys for all locks and security systems on the property. The seller can discharge this obligation by authorising their agent to release the keys to the buyer which is usually the case. So what happens if the keys are not at settlement and the seller’s agent does not hold the keys with an authority to release them to the buyer after settlement? Strictly speaking the seller is in default and the buyer may be able to terminate the contract. In reality, this rarely happens because in practical terms, the buyer and seller are both anxious to complete the transaction.
