Property purchase agreement in Georgia: what to include, payment, mortgage, registration

Property purchase agreement in Georgia: a short text that decides everything

A property purchase agreement in Georgia usually runs to a few pages, and it is registered at the Public Registry on the same day it is signed. A short text does not mean a simple one: anything not written in it is later settled by the general rules of the law or in a dispute. So we write into the agreement what the parties agreed verbally: how and when the money moves, when the keys are handed over, who pays the utility debts and what happens if registration is suspended. The more detailed the agreement now, the fewer grounds for a dispute a year later, when nobody remembers the details of the conversation.

What the agreement must contain

• the parties with passport details, and for a company an extract and the signatory's authority;
• the apartment with its cadastral code, address and area as registered;
• the price and the currency of payment;
• the payment procedure: how much, when, to which account, after what event;
• the seller's assurance that the apartment is free of mortgages, attachments and third-party rights;
• the date and procedure for handing over the keys and the apartment against a certificate;
• who settles debts for electricity, gas, water and building maintenance;
• who pays the registry and notary fees.

Money: before signing, at signing or after registration

Most often the parties agree on payment on the day of signing with same-day registration. If a representative is selling, the money still goes to the account of the owner named in the extract, not to the representative's account. Keep the confirmation of every transfer with the agreement; it will be useful for the tax office and for a future sale.

An apartment with the seller's mortgage

Apartments in Batumi are quite often sold while a loan is still outstanding on them. This can be handled: the agreement states that part of the price goes straight to the bank to repay the loan, the bank files the application to remove the mortgage, and the seller receives the balance. The amount owed is confirmed by a bank statement on the day of the deal. We advise against signing an agreement where the mortgage is simply "known to the parties": such wording does not say who will remove it and when.

The condition of the apartment and hidden defects

Under the Civil Code the seller must hand over the apartment without hidden defects and free of third-party rights, but agreements often change these rules. We write in what condition the apartment is handed over and what furniture and appliances remain, and attach an inventory. If you found a defect during the inspection and agreed a discount, that too goes into the agreement; otherwise it is hard to prove later what was discussed. What problems are most often found before a deal is on the risks of buying property page.

The agreement with a developer

For a new build the agreement is different: the apartment is not yet in the registry, and you are buying a future property. In such an agreement the key points are the completion date, the condition of the frame, the area and how it is recalculated, the penalty and refunds. Ownership of the apartment is registered later, after the building is commissioned, and the deadline for that registration is also worth writing down. If the agreement contains only the completion date, the apartment can remain unregistered for years. How to check the developer before signing is on the developer check page.

Language, signing and registration

The agreement is drawn up in Georgian, a foreigner needs a translation alongside it, and an interpreter is usually present at the signing. It is signed at the Public Service Hall or before a notary. A notary is mandatory if someone acts under a power of attorney issued abroad: since 20 October 2023 such transactions are registered only in notarial form. After signing, the agreement is filed with the registry straight away; more on the Public Registry registration page.

If time is needed before the main deal

When the apartment needs checking, a bank decision is awaited or the money is still being gathered, a preliminary agreement with a deposit is signed first. It fixes the price and the deadline for the main deal and answers the question of what happens to the deposit if the deal falls through; more on the preliminary agreement page.

How much drafting the agreement costs

Drafting the purchase agreement with a translation into your language costs from 660 ₾. A preliminary agreement with deposit terms from 480 ₾, full legal support for the transaction with checks and registration from 2 220 ₾, arranging the power of attorney and translations from 390 ₾. Registry and notary fees are paid at their own rates. The final cost is set after reviewing the transaction and agreeing the scope of work.