The Basis of the Expropriation Right and the Court's Decision
Deprivation of property for reasons of essential public need is permissible, in conformity with the Constitution of Georgia, only through expropriation. The granting of the right of expropriation rests on the Minister's order and a court decision: the Minister's order determines the inevitability of the expropriation and the subject to whom the right may be granted, while the decision on expropriation is taken by the court — it establishes the state organ, municipality or public- or private-law legal person to whom the right is granted.
The court's decision must also contain a detailed description of the expropriated property and an appropriate indication of securing the owner's preliminary, full and fair compensation. The matter is heard by the district (city) court, to which the interested person applies with a statement; the statement is accompanied by a detailed description of the project, the relevant order of the Minister, a detailed description of the property and a document confirming the publication of information. The decision is executed under the procedure for immediately enforceable decisions.
The Pre-Court Stage: Negotiating Agreement and Valuation
The expropriator who has received the right agrees in advance with the owner on the procedure of compensation and takes all appropriate measures to acquire the property by agreement. Before negotiations begin, it values the property at its own expense with the assistance of an independent expert and determines the approximate compensatory sum or other property corresponding to the market value; the owner is likewise entitled to engage another independent expert at his own expense.
The compensation offered must be preliminary, full and fair and must not be less than the amount determined by the expropriator's valuation; transfer of other property as compensation is admissible only with the owner's consent. The valuation is presented in written form with indication of the grounds for determining compensation, and the compensation is free from any tax or fee. Hindering the negotiations and any coercive action against the owner are prohibited; the proposal must also cover compensation for connected property that is insignificant or less valuable but unusable without the acquired property.
The Dispute Over Market Value and Compensation
If the parties fail to agree on the market value and the compensatory sum or on the property offered as compensation, each party is entitled to bring an action before the court of the relevant jurisdiction. The expropriator's action is accompanied by a detailed description of the property, documents confirming the public need, project documents and the district (city) court decision granting the expropriation right. On the basis of a party's reasoned motion the court is empowered to determine itself the form of compensation.
Court Valuation and Expertise
For the purpose of valuation the court appoints an independent expert under the procedure established by civil-procedural legislation. Within the defined term the expert presents a conclusion on the market value both of the expropriated property and of other property offered as compensation, and on the basis of the conclusion and the parties' evidence the court makes the final assessment of the compensation. At this stage the owner's own valuation and his expert's conclusion play the decisive role.
The Expropriator's Obligations and Dispute Strategy
The expropriator is obliged to pay all costs incurred by the parties, including the costs of the proceedings, as well as the costs connected with the valuation and the transfer of the property. It should be noted that this service focuses on the procedural-compensatory dimension of expropriation; the general issues of alienation of immovable property are covered on Legal.ge by a separate service, and the two directions complement each other.
The compensation strategy is two-sided. From the owner's standpoint the central task is timely preparation of his own independent valuation and its comparison with the expropriator's proposal, since the law prohibits compensation below the valuation; from the expropriator's standpoint it is the documentation of the negotiation stage, so that the court can confirm that all appropriate measures were taken. In both cases the dispute is won where the numerical evidence — conclusions, comparable transactions and costs — is arranged in a single system.
Frequently Asked Questions
Who grants the expropriation right and how?
The Minister's order determines the inevitability and the potential subject, while the decision is taken by the district (city) court with a detailed description of the property and an indication of compensation.
What requirements govern compensation?
It must be preliminary, full and fair, not less than the independent expert's valuation, free of taxes, and granted in the form of property only with the owner's consent.
What happens absent agreement?
Each party brings an action in court; the court appoints an independent expert who values the market value, and the decision is taken by the court.
Who bears the costs?
All costs — proceedings, valuation and transfer of the property — are imposed on the expropriator.
How We Help on Legal.ge
The Legal.ge team assists at every stage of a compensation dispute: verifying the valuation, the negotiation position, preparing the action and representing you in court. Write to us — we will protect your property interests in the expropriation process.