An apartment sale transaction represents one of the most common yet significant civil legal relationships in Georgia. Selling an apartment is not merely an agreement between a buyer and a seller regarding the price; it is a complex legal process involving the transfer of property rights, financial transactions, and mandatory registration of changes in the Public Registry. Often, citizens believe that a verbal agreement or a simple template contract is sufficient. However, in reality, incorrectly drafted documentation or disregarding legal procedures can lead to serious disputes, financial loss, or the invalidation of the transaction. The real estate market in Georgia is dynamic, which increases the risks of fraud and errors. Therefore, qualified legal assistance is essential to protect the seller's interests, ensure timely receipt of funds, and correctly determine tax obligations.
What does the Apartment Sale Transaction service cover?
Legal services for apartment sales constitute a comprehensive package ensuring the safety and legality of the transaction from the initial stage to the final settlement. Specialists perform the following actions:
- Legal Audit: A thorough verification of the apartment's documents in the Public Registry to rule out seizures, mortgages, or any other encumbrances that might hinder the sale.
- Preparation of Sale Agreement: Drafting an individual contract that protects the seller's rights, defines the payment schedule, responsibilities, and force majeure circumstances.
- Preliminary Agreement: Legally formalizing the agreement on the deposit (earnest money) between the parties, ensuring the buyer does not withdraw from the deal without consequence.
- Negotiations: Communicating with the buyer or their representative to agree on contract terms, ensuring the seller's interests are maximized.
- Control of Banking Transactions: Ensuring the use of secure settlement mechanisms (e.g., escrow accounts or letters of credit) to guarantee payment.
- Handover Act: Preparing a document confirming the actual transfer of the apartment into possession and verifying that all utility bills have been fully paid.
Common Scenarios and Needs
There are many situations where a lawyer's involvement is critically important when selling an apartment:
- Selling a Mortgaged Apartment: When the seller has a bank debt, a tripartite agreement between the bank, the buyer, and the seller is necessary to settle the debt from the sale proceeds and lift the mortgage.
- Sale by Installments: If the buyer pays the amount in stages, strict guarantees must be included in the contract so that in case of payment default, the seller can reclaim the property or receive compensation.
- Co-ownership Issues: When an apartment belongs to several persons (e.g., spouses or heirs), proper formalization of consent from all owners is required to prevent the transaction from becoming disputed later.
- Sale via Power of Attorney: If the seller is abroad and the apartment is sold by a proxy, a precise legal assessment of the validity and scope of the Power of Attorney is essential.
Georgian Legislation and Regulations
The process of selling an apartment is regulated by several key legislative acts of Georgia. Primarily, the Civil Code of Georgia defines the essence of the sales contract, the rights and obligations of the parties, and the rules for the transfer of ownership. According to the Code, the transfer of ownership rights to real estate requires not only a contract but also registration in the Public Registry. The Law of Georgia on the Public Registry establishes registration procedures and deadlines. According to this law, the owner is the person registered in the Registry, not necessarily the one who physically possesses the apartment or holds the contract. Furthermore, the Tax Code of Georgia is significant as it regulates tax obligations arising from the sale of real estate, specifically income tax (for example, if the apartment was owned for less than two years, the seller may be liable to pay 5% on the surplus income). Thorough knowledge of the legislation is necessary for the seller to avoid fines and legal loopholes.
Step-by-Step Process
The apartment sale process with the help of a specialist includes the following stages: First, the legal status of the property is studied, and an extract is updated from the Public Registry. In the second stage, the parties agree on the main terms, and a preliminary sales agreement is signed (if desired), where the deposit is recorded. The third stage involves preparing and signing the main contract, which can be notarized or signed directly at the Public Service Hall. In the fourth stage, the contract is registered in the Public Registry, after which the buyer officially becomes the owner. The final stage involves full payment of the amount (if not done before registration) and the physical transfer of the apartment based on a handover act.
Why Legal.ge?
Legal.ge is a platform connecting you with experienced and verified specialists in real estate law. Through us, you can find lawyers with years of practice in managing complex apartment sale transactions. The specialists presented on Legal.ge ensure the complete legal soundness of your deal, save you time, and avoid financial risks. Trust the professionals and make selling your property a safe and comfortable process.
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