Verify the Title at the Public Registry
Start by checking the official property record. The National Agency of Public Registry (NAPR) maintains a database of all titled property. You or your lawyer must obtain a fresh extract for the specific property. This document provides the definitive record of ownership.
The extract confirms the legal owner's name and personal ID number, the exact size of the property in square meters, and its unique cadastral code. It also lists any active mortgages, liens, tax seizures, or legal disputes registered against the title. If the seller is not the registered owner on the extract, resolve that discrepancy before proceeding.
Investigate Outstanding Debts
While liens are registered on the title, utility and condominium debts are not. In Georgia, significant debts for electricity, gas, water, or building maintenance can attach to the property, not the previous owner. You could become responsible for these after purchase.
Before closing, demand proof from the seller that all utility balances are zero. Obtain clearance letters or statements directly from utility providers (e.g., Telasi, Georgian Water and Power) and the building's management company, if one exists. Do not rely on the seller's verbal assurances.
Scrutinize the Developer for Off-Plan Purchases
Buying a property off-plan or under construction involves trusting the developer to finish the project. Due diligence here focuses on the company, not only the property. Start by researching their history. How many projects have they completed? Visit one of their finished buildings and speak to residents if possible.
Ask the developer for the construction permit number for your specific project. This permit is issued by the municipal architecture service and can be verified. Also check the ownership of the land the building sits on. Is the land owned outright by the developer, or is it leased? A development on leased land carries a different risk profile. Understand these implications.
Assess the True Physical Condition
Property condition in Georgia is often described as 'Black Frame', 'White Frame', or 'Renovated'. These terms lack legal definition and vary in meaning between sellers. 'White Frame' could mean plastered walls and a concrete floor, but it might lack basic electrical wiring or plumbing connections.
For any property, especially resales or those in older buildings, consider hiring an independent technical inspector. For a few hundred GEL, a professional can identify structural problems, dampness, illegal modifications, or issues with electrical and plumbing systems. This report provides a basis to renegotiate the price or withdraw from a purchase.
Confirm Land Status and Zoning
Georgian law prohibits foreigners from directly owning land designated as agricultural. This rule has few exceptions. A common issue is buying a house on land still classified as agricultural.
The Public Registry extract will state the land's designated use. If the status is 'agricultural', a foreign individual cannot legally own the land. Changing agricultural zoning to residential can be complex, expensive, and uncertain. Ensure the property you intend to buy has a 'non-agricultural' land designation from the outset.
Using a Power of Attorney (PoA) for Remote Purchases
It is common for foreigners to purchase property remotely using a PoA. This document grants a trusted person in Georgia, usually a lawyer, the right to act on your behalf. The PoA requires preparation, notarization, and apostille (or legalization) in your home country.
Never use a generic or overly broad PoA, especially one provided by the seller or developer's agent. Your independent lawyer should draft the PoA to be highly specific. It should name the exact property, the maximum purchase price, and the precise actions your representative is authorized to take. This ensures funds are used only for the intended purchase and protects against misuse.
FAQ
Do I really need a lawyer to buy property in Georgia?
While buying property is possible without a lawyer, it is highly advisable, especially for first-time foreign buyers. A good lawyer acts as your independent representative, performs due diligence, and ensures contracts protect your interests, not solely the seller's. Their fee represents a worthwhile investment for security.
What are the typical closing costs if there is no purchase tax?
There is no purchase tax or stamp duty. However, you should budget for notary fees, Public Registry fees (which vary for standard 4-day or expedited 1-day service), potential bank transfer costs, and legal fees if you hire a lawyer. These typically amount to a very small fraction of the property price.
How do I get a property officially valued for the $100,000 residency permit?
The market price you pay is not automatically accepted for the investment residency program. You must hire an appraiser accredited by the national accreditation body. They will produce a formal valuation report, which is then submitted with your residency application to prove the property's value meets or exceeds the $100,000 threshold.
What's the difference between Black, White, and Green Frame?
These are informal developer terms. 'Black Frame' is a basic shell, lacking interior walls, utilities, or finishes. 'White Frame' typically adds interior partitions, basic plastering, and floor screed, with utility lines brought to the apartment door. 'Green Frame' is a newer term, implying a higher state of finish, close to turnkey but often without final fixtures, furniture, or appliances.
This article is for informational purposes only and does not constitute legal or tax advice. You should consult with a qualified professional for advice specific to your situation.
