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The Guide to Real Estate Deals in Georgia

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The main thing about Georgia that foreign real estate buyers need to know is that there are no significant restrictions for foreign owners. The additional costs are small. And transactions are concluded very quickly, as Georgia is one of the world leaders in terms of ease of property registration. Nevertheless, the Georgian real estate market has a number of features you should know about.

The basic algorithm for buying real estate in Georgia is simple: choose a real estate object, check legal purity of it (if the property is actually registered to the person who is represented by the seller), whether there are any encumbrances on the property (mortgage, arrest).

You need to find out how the seller purchased the property, whether there are any legal claims on it, including from the previous owner. This information is not always publicly available and requires independent research.

It is important to check the status of the seller, such as their marital status. For example, a property can be acquired during a marriage, and the ownership is registered to one of the spouses. The consent of the second spouse to the transaction is not required under the legislation of Georgia, but there is no guarantee that the second spouse will not contest the transaction after learning about the sale.

See the list of properties available for the purchase in Georgia:

Step 1. Making a Sales Contract

If the property is clean, you can enter into a contract of sale and register the transaction in the public register. The contract must be drawn up in a language that is understandable to both parties to the transaction, plus in Georgian. Most often contracts with foreign buyers are bilingual. You will need a presence of Georgian interpreter at the House of Justice. Not a certified one necessarily. As long as they speak fluent Georgian, they suit. The interpreter also signs the contract, confirming that the translation was performed correctly.

There are two ways to sign a contract:

  • directly in the House of Justice (directly (buyer – seller) or via authorized representatives);
  • at the notary's office, after which you need to submit a signed document to the House of Justice. Many notaries in Georgia have access to the public register and the right to accept documents for registration.

If this is a simple transaction between parties who speak the Georgian language (without installments, mortgages), you may not even have a ready-made contract of sale, the form will be given to you in the house of justice. In this case, the document is filled in manually with the details of the seller and buyer, the terms of the contract, and signed in the presence of the Registrar. After that, the transaction is immediately processed.

But! If the transaction is made with deposits, advance payments, installments, mortgages, it is important to draw up a contract in advance indicating all the features of the transaction, preferably with the involvement of a notary. In this case, it is important to insist on your way of things and fix all the nuances on paper, without fallinf for persuasions a la "everything will be fine, we will solve everything". Ideally, you should not only seal the contract with signatures, but also take it to the House of Justice to register encumbrances on the property.

When do I need a notarized contract?

When you need additional guarantees that all the terms of the transaction are fulfilled. In particular, when a material obligation arises under the contract and there is a risk of its non-fulfillment.

If you sign a contract in a simple written form directly at the House of Justice, in case of failing obligations you will receive an order of procedure only by a court decision. And given that the courts in Georgia are very busy, it will take a long time to wait for the trial and the court act.

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Become a Property Owner in Turkey in 5 steps
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Step 2. Making a Deposit

Just like everywhere esle in the worl, in Georgia the buyer makes a deposit to book a real estate object. But there are no fixed conditions, everything depends on the agreement between both parties. Advance payments and installments are often used.

The deposit is made, if the property is very interesting or profitable at the price. It is used as a way to secure monetary obligations in favor of both the seller and the buyer. If the buyer cancels the transaction, the deposit will not be refunded. If the contract is terminated by the seller, they are obliged to return the amount in double amount. This is a recommendation, you can specify other conditions in the contract.

By the way, the procedure for registering a deposit agreement is very simple and fast. There are two options: submit the document for registration after signing with a notary, or visit the local House of Justice to sign the contract in the presence of the Registrar. At the same time, the parties signing the agreement may be located in different cities of Georgia. You can also sign a document within two days using the registration number by picking up the first signature from the electronic database of the House of Justice.

After registration of the contract, an encumbrance is imposed on the property, which is visible to any interested person in the column "Mortgage by cadastral number of the property". If the owner can re-sell this housing, then only with the current encumbrance.

Georgia

Step 3. Making a Payment

You do not have to open an account in a Georgian bank. However, you may need to pass the currency control procedure in the country from which you send money. The risk of choosing a payment method lies with the seller. You should first think about the probability that your bank will not approve the transaction. Usually, there are no questions.

Of course, it is more convenient to make payments between two Georgian accounts, especially if you have the same bank. In this case, the transfer of money takes a couple of seconds. But keep in mind that each bank has its own limit for transferring funds. When the amount is large, it is possible that the procedure will take more than one day. Clarify this point before proceeding the payment.

By the way, opening an account in a Georgian bank is a matter of one day. If you create a premium account (like "Solo" in the Bank of Georgia or "Status" in the TBC), you will not have any restrictions on the amounts transferred.

You can also pay in cash. In this case, the transfer of funds is confirmed by a warranty bill of sale in simple written form or made in the presence of a notary or witnesses.

It is very common to buy real estate via instalments. But taking a credit in Georgia is not an easy task, and the percent is not low, especially in comparison with other countries.

Mortgages are taken either for cheap properties, since the buyer can not afford to buy an apartment immediately, or luxury real estate, especially if the future owner has a good credit history in the bank. In the second case, there are situations when the Bank offers a more favorable interest rate due to the client's high trust rating.

As for new projects, banks offer installments until the end of construction. And in connection with recent events, developers have agreed to even more loyal terms and are ready to provide interest-free installments for a longer period.

Also read: The Top-5 Countries with Cheap Real Estate by the Sea

Step 4. Closing of a Sale

Personal presence when buying real estate is optional. It is possible to conclude a transaction on the basis of a notarized power of attorney. You can use a power of attorney to carry out all stages of the transaction: selecting a property, negotiating with the developer, concluding a purchase and sale agreement, performing calculations, registering ownership in the public register, even registering with the tax authority and conclude contracts with utility providers.

The real estate purchase procedure itself can take half a day. To transfer ownership from the seller to the buyer in the public register, it is enough to submit a contract of sale of real estate. It is the entry in the public register that confirms the ownership right. You can get a corresponding document on request, but this information is open: knowing the cadastral number of the real estate property, you can enter it on the website of the public register and find out both the name of the owner and the encumbrances available on it.

Photos: pixabay.com

Quoting conditions of Prian.info materials

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