FREQUENTLY ASKED QUESTIONS ABOUT THE PROPERTY IN GEORGIA

If a new building is delivered:

1. Entering into a sale-trade agreement by contract between the seller/the developer company and the buyer.
2. Payment to the current account of the seller in accordance with the contract.
3. Registration of property in the public register.

If a new building is under construction:

1. Entering into a preliminary sale-trade agreement by contract between the seller/the developer and the buyer.
2. Payment to the current account of the seller in accordance with the contract.
3. Registration of property in the public register. However, there are two types of contracts for this type of buildings: a preliminary contract and a main contract.

A preliminary contract includes a main contract and the following conditions:

• • The obligation of the seller company to deliver the property within a certain period and in the condition described in the contract (walls, floor, windows, communication, etc.).
  • The parties’ obligations to sign the main contract in the future. From the moment of signing the preliminary contract until the signing of the main contract – the buyer is registered in the public register as the future owner of the apartment.
  • By the time the main contract is signed, both parties must have fulfilled their obligations under the preliminary contract. The company must to build and deliver the apartment on time and in the agreed conditions, while the buyer must pay the full or part of price of the property.Sometimes, developer-companies ask for an initial payment of 20%-50% of the purchase price. When signing the main contract, the apartment is registered again to the buyer as the owner of his/her new apartment.

Payment for an apartment in a new building is made by bank transfer to the current account of the developer’s company based on the sale and purchase agreement. As a rule, the payment (the first part of payment or 100% payment) is made within 3 working days after signing the contract. In addition, all payments must be made in the local currency – GEL.

A money transfer can be made in the bank upon registration of the property in the register.

Banks have services for the security of purchase and sale transactions.

The service “Secure Transaction” – a joint account of both parties for the transaction of purchase and sale. The bank also draws up a 3-sided contract, fixing the fact of transfer of money, where the third party and the guarantor is the bank. There is also the service “Individual Safe Deposit Box” – you can transfer money and then withdraw it when you need cash.

The fact of transferring money when buying a property from a physical person can also be certified by a notary together with the purchase agreement.

It’s possible to get a loan even for a foreign citizen. However, it might be difficult and inconvenient. Most importantly, there are no restrictions either from construction companies or from the State. Instalments are valid according to the rules established by the company, both for citizens of Georgia and citizens of other countries.

In order to obtain a bank loan, it is necessary to have guarantees valid on the territory of Georgia. The maximum annual interest rate on the loan is 13 %. The loan repayment term for Georgian citizens is up to 15 years, while for citizens of other countries – up to 3 years.

In order to register the contract of purchase, any person must have a document certifying his/her identity and the amount of money required to pay for the property, according to the contract, if it’s not paid yet.

In addition to the previous requirements you will need:

• • Application form that can be electronic. In this case, online application is filled by the receiving operator.
  • Copy of your identity document/passport.
  • Contract of purchase.
  • Copy of the building permit.
  • Document confirming payment of the cost of the registration service.
  • Technical plan of the apartment.
  • Certified layout of individual and common property of the floors.

The cost of services and terms of registration in the public registry take 4 business – 50 GEL, 1 business day – 150 Gel, for a same-day- 200 GEL.

The sale and purchase transaction must be done in two languages – Georgian-official language and the language of the buyer, if he/she is a foreign person. Both copies are legally binding and must be signed by both parties of the contract, as well as by a translator responsible for their identity.

Georgia has one of the most liberal visa regimes in the world. As a result, the tourism and real estate business are growing so fast. The EU, GCC, CIS countries, North America, Australia, New Zealand, South Africa, Japan, South Korea, Malaysia, Singapore, Thailand, Israel, Turkey, Iran and most of South America citizens do not need a Visa. A foreigner will receive a stamp in your passport at Immigration allowing you to stay in the country up to 1 year.

Electricity – 0.05$ per 1 kw/h

Gas – 0.18 $ per 1 m^3

Water – 0.12 $ per 1 m^3

Garbage – 1.1 $ per month/person

Internet (Cable/ADSL with unlimited data) – 14 $ per month