Buying Property in Georgia: Step-by-Step Legal Guide, Key Risks and Mortgage Checks
In short
- Order an up-to-date Public Registry extract before you sign anything, and again before you pay.
- Never pay the full price while a mortgage, seizure or other encumbrance is still registered on the property.
- Ownership passes to you only when the sale and purchase agreement is registered with the Public Registry, so the order of payment and registration matters.
Buying property in Georgia is straightforward when the steps are taken in the right order, and expensive when they are not. Most problems come from a few avoidable mistakes: paying before the property has been checked, overlooking a registered mortgage, or relying on an outdated extract. This guide explains what to verify, how to deal with a mortgaged property, and how the agreement is registered with the National Agency of Public Registry (NAPR).
1. Check the Property Before You Pay
Before any money changes hands, confirm that the property is free of legal obstacles. An up-to-date extract from the Public Registry shows the registered owner, the cadastral data and any registered mortgage, seizure or other encumbrance. It can be ordered electronically using the property’s cadastral code.
Even a clean extract is only a snapshot. Refresh it immediately before signing and again before the balance is paid, because new registrations can appear at any time.
What Is a Mortgage, and Why Does It Matter to a Buyer?
Under the Civil Code of Georgia (Article 286), immovable property may be encumbered to secure a claim, so that the secured creditor can satisfy that claim from the property, or take it into ownership, ahead of other creditors. A mortgage may also secure a future or conditional claim, provided the claim can be determined when the mortgage is established.
What matters most for a buyer is that a mortgage follows the property, not the seller. If it is not released, it stays registered and remains enforceable against each subsequent owner on the same terms as against the original owner. A seller’s promise to repay the loan later is therefore not enough: the mortgage must actually be released before the buyer’s ownership is registered.
Additional Checks
- Seller’s ownership and authority: confirm that the seller is the registered owner, whether a co-owner or spouse must consent, and, if someone signs by proxy, that the power of attorney is valid and covers the sale.
- Construction permit: confirms that the building was legally approved.
- Commissioning (City Hall): verifies whether the building has been officially commissioned. Final approval may still be pending, which is common with new-builds.
- Land plot status: confirms whether the land is agricultural or non-agricultural. This is critical for foreign buyers, who are generally restricted from acquiring agricultural land.
- Seizures and disputes: check for any seizure, court dispute or enforcement proceedings involving the property or the seller.
2. If the Property Is Mortgaged: Working With the Bank and the Registry
If the property is mortgaged, obtain a bank guarantee letter confirming that the mortgage will be released immediately once the loan is repaid.
Mortgage repayments are made directly to the bank. Escrow arrangements are not a standard feature of property transactions in Georgia, so the order of the steps, and the agreement itself, must protect both sides. The procedure generally works as follows:
- Repay the existing mortgage. The seller’s mortgage is cleared at the bank before the transfer, with the repayment funds deposited directly with the bank.
- Obtain the release. Using an expedited procedure, the bank can release the mortgage quickly, in practice often within a few hours depending on the bank, and issues receipts confirming the payment.
- Update the extract. Once the mortgage is released, order a new extract. Do not proceed to registration until it shows the property free of the mortgage.
- Register the agreement. With the clean extract in hand, the sale and purchase agreement is submitted to the Public Registry, where ownership is transferred to the buyer.
- Pay the remaining balance. In the structure described here, the balance is transferred to the seller, in cash or by bank transfer, once the agreement has been registered. Any deposit already paid counts toward the total price. The parties may agree a different payment mechanism, but whichever one is chosen should be written into the agreement.
In some bank branches, authorized Public Registry representatives are present, so the agreement can be submitted directly from the bank. In that case, the mortgage release and the registration can be handled at the bank, sometimes on the same day, without a separate visit to the Registry. The details still depend on the circumstances of each transaction.
3. Registration at the Public Registry
The sale and purchase agreement is submitted to the Public Registry for official registration. The state fee depends on the processing time you choose:
| Processing time | State fee |
|---|---|
| 4 working days | 150 GEL |
| 1 working day | 270 GEL |
| Same day | 350 GEL |
Fees are set by NAPR and may change, so confirm the current tariff on napr.gov.ge before filing. An English-language version of the extract is available for an additional fee. After registration, the property is officially in the buyer’s name and the updated extract confirms ownership.
4. Deposit Agreement: Optional, but Put It in Writing
A deposit agreement is optional and is usually needed only if the seller asks for one. If you use one, put it in writing and state the amount, confirm that the deposit counts toward the price, and set out what happens if either party withdraws. Having it notarized is recommended.
Common Mistakes to Avoid
- Paying the full price before the mortgage is released and the registration is complete.
- Relying on an extract that was ordered weeks ago.
- Checking the building but not the status of the land plot.
- Accepting a power of attorney without verifying its scope and validity.
- Agreeing payment terms verbally instead of writing them into the agreement.
Frequently Asked Questions
Can a foreigner buy property in Georgia?
Generally yes, for apartments, houses, commercial space and non-agricultural land. Agricultural land is subject to special restrictions for foreign citizens, so the status of the land plot must be checked before any payment.
How long does registration take?
It depends on the processing option chosen: 4 working days, 1 working day or the same day, at the fees shown above.
What if the seller still has a mortgage when we sign?
The mortgage must be repaid and released before the buyer’s ownership is registered. Use the bank guarantee letter and the sequence in section 2, and do not release the full price until the updated extract is clean.
Do I need a lawyer for a property purchase?
It is not required for every transaction, but a lawyer can check the extract, review the agreement, coordinate the mortgage release and flag problems before money is paid, which is when they are cheapest to fix.
Need Legal Support With a Property Purchase?
SB Legal Solution checks the legal status of the property, reviews and prepares the sale and purchase agreement, coordinates with the bank and the Public Registry, and supports buyers, including foreign clients, through to registration. Contact our team to discuss your transaction.
This article provides general information and does not constitute individualized legal advice. Laws, tariffs and procedures may change; confirm the current requirements before acting.