When buying real estate in Georgia everyone have to be very careful and take into account several important details. Otherwise people may see financial loss and get into a lot of trouble. What should anyone consider when buying an apartment, house or commercial space? – We will answer this question.
Based on article 149 of Civil Code of Georgia Real estate (immovable property) includes – a plot of land with or without a building on it, a building (under construction, built or demolished), a building unit (under construction, built or demolished) and a linear building.
In order for a person interested in property to have the right of ownership, its registration in the public register is mandatory. Registration of ownership of a real estate means the registration of data on the origin of this right in the relevant register, making a decision on registration.
The public register is a set of data on the origin of rights, seizures and tax liens / mortgages on property and intangible property, their change and termination, as well as the origin and change of abandonment of ownership of immovable property.
The right of ownership of a real estate is considered to have arisen from the moment of issuance of the decision on registration of this right; From the moment of registration of ownership of the immovable property, the owner is entitled to dispose of (alienate, mortgage, etc.) the immovable property. More on this topic: What to consider when purchasing an apartment in Georgia
What are the requirements for ownership registration in Georgia?
The registration procedure after agreeing on the terms of purchase of real estate in Georgia is not as complicated as in other European countries. For example, in Portugal, where the process may end after months.
To register a property right on the basis of a purchase agreement, both parties should address the House of Justice or the territorial office of the National Agency of Public Registry and bring the following documents:
- Application (electronic application is filled in by the receiving operator);
- Their identity documents;
- Properly certified purchase agreement;
If you are a representative of an interested person, then additionally present a duly certified document of representation (POA) and your identity document;
In specific cases, any additional documents or information necessary for a decision may be required.
How long does it take to transfer a property ownership in Georgia?
As already mentioned, registration procedures are not complicated and lengthy. A person can choose to complete the registration on the same day, 1 business day or 4 business days.
The deadline starts on the day following the registration of the application and ends with the expiration of the last day of the deadline. If the last day of the period coincides with a holiday or a day off, then the last day of the period is the next working day.
There is no additional percentage of property value tax for property registration in Georgia. The only thing the parties have to do is charge a registration fee, which depends on what time you request to consider the matter and make a final decision.
The seller of land and other real estate bears the costs of concluding a purchase agreement, registration in the public register and submitting the necessary documents. The parties may mutually amend the above terms.
Duration of service | Service Fee |
4 working day | 75 GEL |
1 working day | 220 GEL |
The same day | 300 GEL |
Legal general advice on property purchase contract?
Before concluding the purchase agreement and paying the purchase amount, it is necessary to legally analyze this agreement and check the terms.
Based on the article 477 of the Civil Code of Georgia,
1. Under a contract of sale, the seller shall transfer to the buyer the title to the property and the documents relating to it and deliver the goods.
2. The buyer shall pay the seller the agreed price and accept the purchased property.
If the contract does not explicitly specify the fee for the subject of the purchase, the parties may agree on the means of determining it. The price of purchase is nor the only main thing to consider while purchasing real estate.
Before buying real estate you should definitely see an official extract from the public register.
However, this should be an updated extract: for 1-2 months, or a week ago you should not trust the extract. Also do not trust an oral agreement – sometimes the parties agree and the buyer pays the money in advance.
To be insured, the buyer must verify again before the registration process that this property is neither foreclosed nor re-registered. This should happen in those minutes because an apartment checked one or two days, or even a few hours ago, may be seized, or mortgaged.
If its former owner has a mortgage, you should contact the bank and find out everything in detail.
What is the procedure?
A transaction with the same content may be certified by the Public Registry or different territorial offices of the House of Justice and such transaction (both copies in writing at the same time) will be considered as a basis for registration.
For example, the seller will sign the purchase agreement with the operator of the Tbilisi House of Justice, and the buyer will sign the second copy of the agreement with similar content with the relevant operator at the Kutaisi House of Justice. However, both signatures must be duly certified.
Real estate can be registered in two ways – in the public register and with a notary. The public registry service is quite cheap: you only have to pay 75 GEL to register an apartment, but one misunderstanding arises: sometimes the seller demands that the buyer pay as soon as the apartment is re-registered, but the buyer refuses and waits for an extract, which is perfectly justified.
We had a case where the buyer paid the amount but the landlord had tax liabilities and the apartment was seized. The relationship with a notary is more secure because of this: if you sign a contract with a notary, this contract can be submitted to the public registry in a week, or a month, simply, the fee with the notary is higher.
This is the key principles and details you should know while registering real estate property right in Georgia.
We hope you benefited from this article and will invest in Georgia to flourish your future prospects. If you have any questions or if there is a specific topic that interests, then leave a comment below and we’ll make articles about most requested topics for you.
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