Real Estate Inspection Before Buying: Foreign Buyer's Checklist

Georgia is one of the easiest countries for a foreigner to buy a home in: most residential and commercial properties are freely available for sale, and registration is quick. However, speed has its downsides — a deal completed in one day may hide an unsecured mortgage, foreclosure, or disputed property. This checklist shows you what a foreign buyer should check before paying in Georgia.

Start with a public registry extract

In Georgia, property and mortgage obligations are registered with the National Agency of Public Registry, which is under the Ministry of Justice. First of all, get a current extract of the specific property. It confirms who the legal owner is and whether the property has any registered obligations. Request a new extract, issued close to the date of the transaction, and not an old copy provided by the seller.

What should we give you as an extract?

• Registered owner and property cadastral code;
• Any mortgage, lien or seizure;
• seizure, litigation or third party claim;
• Registered area and boundaries of the property.

Check the seller, not just the property

Make sure the person signing matches the owner listed on the extract. If a representative is signing, carefully check the power of attorney — its scope, date, and whether it is valid. In the case of property owned by a company, make sure the company is active and the signatory is authorized to sell.

Check the liabilities that accompany the property.

Some liabilities are attached to the property, not the owner. Ask for proof that utilities, building management fees, and taxes are covered so that you don't inherit debt. If the property is mortgaged, the mortgage should be removed as part of the transaction, not left as a promise.

Special precautions: Land category

Residential properties are generally easy for foreigners to acquire. Agricultural land is a different category and comes with restrictions on foreign ownership in Georgia. If the purchase concerns land and not an apartment, consider the land category as a risky point and have a lawyer check the applicable rules before making a decision.

Foreign Buyer Checklist

• New extract confirming the owner, area and cadastral code;
• There are no mortgages, liens or disputes, or there is a plan to remove them;
• The seller's identity matches the extract; a genuine power of attorney, if signed by a representative;
• Utility, management and tax debts are covered;
• The land category is checked if the transaction concerns land;
• The purchase agreement is reviewed before signing;
• The transfer of ownership is registered in the Public Registry or the House of Justice.

Have the contract reviewed before signing.

The purchase of an apartment is usually quickly formalized with a notary or directly at the courthouse, and it is tempting to sign whatever they give you. Don't do it. The contract should clearly indicate the parties, the cadastral code, the price and currency, the payment mechanism, and the moment of transfer of ownership. If the down payment is made in advance, the contract should determine its fate in the event of a breakdown of the deal. It is much cheaper to have a lawyer read the draft than to correct a flawed contract.

Link payment to registration

The safest scheme is to link your money transfer to the registration of the property in your name. Don't pay the full price in cash only to promise to register it later. If the mortgage is to be removed, arrange for its removal as part of the same transaction so that you receive the property without any encumbrances. Keep all proof of payment — it establishes both your ownership and any possible questions the bank may have about the origin of the funds.

Frequently Asked Questions

Can a foreigner buy property without residency?

Yes — residency is not required to purchase most residential or commercial property. The restrictions apply primarily to agricultural land.

Is it necessary to be in Georgia to complete the transaction?

Not necessarily; the transaction can be made with a notarized power of attorney, but carefully check the authority of the representative.

How quickly does the transfer register?

Registration at the House of Justice is usually quick, often within a day, with expedited options available. It is this speed that makes the above checks necessary.

A deed is cheap insurance. Conducting these inspections, preferably with a real estate attorney, is the difference between a clean title and an expensive surprise.

This material is for general informational purposes only and does not constitute legal advice. For specific transactions, please consult a qualified attorney. - Legal.GE NewsMaker