Release of Keys and Trust Letters

Scenario: The Importance of Strict Adherence to Trust Letter Protocols

In a recent transaction, an agent from our brokerage, Greater Calgary Real Estate, released property keys to the buyer's agent under a signed trust letter, with the seller's prior consent, before the official possession date. The trust letter explicitly stated that the keys were to remain in the custody of the buyer's agent and were not to be transferred without express permission from our brokerage or the seller's legal representative.

However, the following chain of events unfolded:

1. Unauthorized Transfer: The buyer's agent, without seeking the necessary authorization, handed the keys over to another agent.
   
   

2. Further Mismanagement: This second agent, also lacking proper permission, passed the keys to a third agent.
   
   

3. Breach of Protocol: Our management team discovered that the initial buyer's agent, who had signed the trust letter, was unavailable, leading to confusion about the keys' whereabouts.
   
   

4. Rectification Efforts: Our manager had to intervene, tracking down the keys and securing a new agreement with the agent currently in possession to ensure the property's security.
   
   

Key Takeaways for Our Agents:

• Strict Compliance: Always adhere to the specific terms outlined in any trust letter. Unauthorized transfer or duplication of keys is a serious violation that can compromise property security and client trust.
  
  

• Clear Communication: If you are unable to fulfill your responsibilities (e.g., due to absence), inform your manager and ensure that proper protocols are followed to delegate duties appropriately.
  
  

• Documentation: Maintain accurate records of key custody and any transfers, ensuring that all actions are documented and authorized in writing.
  
  

• Client Assurance: Our clients trust us to manage their property transactions with the highest level of professionalism. Upholding trust letter agreements is essential to maintaining this trust and protecting all parties involved.
  
  

By learning from this incident, we can reinforce our commitment to best practices, ensuring that such breaches do not occur in the future.