The 95 525i does NOT use a key with integrated keyless entry...only the e34 V8 used EWS technology (like on the e39/e38/e46) which also has a chip embedded within the key's head which is a "passive" immobilizer.
If your key looks like the one below...the previous owner just paid lots of money to have a key cut (to the car's VIN) but the keyless entry functions will not work (so the buttons on the key head are useless):
But there is a general "illuminated" key...which looks like the one below (which is also attached to the keyless entry fob used on the 1995 525i):
Click the following link to see the keys that were available for the 1995 525i (also note the mfg date of your car for correct key usage). If the part number in the diagram is NOT listed in the part number index below the diagram...then that part is not available for your car. BTW, I used info for my car and mfg date (11/95)...you may want to enter your car's VIN for a more accurate diagram if your build/mfg date is prior to 1/1995.
Key diagram and part numbers for the 1995 525i