Buying an apartment in a new building in Georgia: risks

Buying an apartment in a new building in Georgia during the construction phase is attractive due to its price and selection, but it carries a real risk: you're paying before the property even exists. If construction is halted or the developer encounters problems, your position depends on the contract and documentation. We examine the risks and inspections that protect the buyer.

Why is it riskier?

The completed apartment can be inspected and registered. During the construction phase, you rely on the developer to complete the project on time, according to specifications, and to transfer clear title. Therefore, the developer's reputation and the quality of the contract are key.

What to check before payment

• Developer - experience, completed projects, financial and legal status;

• Land and permits - does the developer own the site and is there a valid building permit;

• The contract is a payment schedule linked to the stages of construction, the deadline, penalties for late payment, and what will happen if the project is disrupted;

• Registration – how and when your right will be recorded and whether it is possible to protect your interest in the register.

How to protect money

Prefer staged payments tied to actual progress rather than large upfront payments. The contract should clearly describe the project, specifications, and delivery date, with penalties for late or non-delivery. If possible, secure/protect your interest and keep all payment receipts.

Warning signs

• Pressure to pay a large sum in advance with unclear documents;

• Lack of building permit or unclear land ownership;

• The contract has no deadline and no liability for late delivery;

• Unwillingness to put promises in writing.

Frequently asked questions

Is new construction cheaper during the construction phase?

Often yes - but the discount reflects the increased risk before delivery.

What to check first?

The developer's reputation and a contract that ties payment to milestones and protects you in case of disruption.

Is it possible to protect interest before delivery?

Depending on the scheme, your interest may be registered or otherwise protected - please check before paying.

An independent review of the developer and contract before payment is the cheapest insurance against problems with a new building. This article is for general informational purposes only and is not legal advice; protection depends on the contract and applicable law. — Legal.GE NewsMaker