---
title: "Free Transfer and Direct Sale of State Property"
url: "https://legal.ge/en/service/civil-law-en/free-transfer-and-direct-sale-en"
field: "Civil Law"
description: "Free transfer of Georgian state property to displaced persons, the 3-month contract deadline, movable distribution and direct sale rules. Legal.ge."
updated: "2026-10-14"
publisher: "legal.ge"
---

# Free Transfer and Direct Sale of State Property

> Source: legal.ge, https://legal.ge/en/service/civil-law-en/free-transfer-and-direct-sale-en

## Free Transfer and Direct Sale — What the Law Regulates

Free transfer into ownership and direct sale of state property belong to those forms of disposal of state property which differ from the auction: what is decisive here is not bidding but a decision of a state body and the special grounds provided for by law. The norms operative in this field regulate issues grouped into three clusters: special cases of determining the initial privatization amount, free transfer of property into ownership, and direct sale on the basis of competitive selection.

Each of these forms shares a common feature: the decision-making body is the Government of Georgia, while the concrete procedural details — the procedure for determining amounts, the conditions of initiation and remuneration — are often established by Government decrees or ministerial orders. Therefore, when planning a specific transaction, it is necessary to study the respective legal acts together with the law itself.

The full text is available on legal.ge after signing in: https://legal.ge/en/service/civil-law-en/free-transfer-and-direct-sale-en

### To whom may state property be transferred free of charge?

By decision of the Government of Georgia, state property may be transferred free of charge into ownership to internally displaced persons from the occupied territories. Movable property may, by decision of the State Property Agency with the ministry's consent, be transferred to a municipality, a public-law legal entity, a non-commercial legal entity, or an enterprise created with 50% or greater state equity participation.

### Within what period is the free-transfer contract concluded?

Within 3 months of the adoption of the respective Government act, a contract must be concluded between the State Property Agency and the acquirer. If it is not concluded within that period, the Government act loses force.

### May the initial privatization amount be set below the market price?

Yes, but only in defined cases: at an auction announced with conditions the initial amount may, under a procedure set by a Government decree, be below market value, and for unleased agricultural land — below the value established by law.

### Who decides on direct sale by competitive selection?

The decision is taken by the Government of Georgia, which is entitled, in individual cases, to entrust this power to the Minister of Economy and Sustainable Development.

### What limitation period applies to disputes over privatized immovables?

The limitation period for a disputed issue connected with a privatized immovable item is 3 years, so claims must be brought to court in a timely manner.