Off-plan property purchase is one of the most popular yet risky transactions in the Georgian real estate market. This process involves buying property before the building is physically constructed or commissioned. Buyers often choose this route due to lower prices and flexible payment terms (internal installments), but legally, this is an obligation to purchase "future property" rather than an existing asset. It is critically important for the buyer to correctly assess the developer's reliability and sign a contract that protects their interests in case of construction suspension, missed deadlines, or quality discrepancies. Involving a lawyer in this process minimizes the risks associated with buying "air" and ensures your investment is legally protected.
What does this service cover?
Legal services for off-plan property purchases are comprehensive and include the following stages:
- Developer Due Diligence: Checking the construction company's financial status, the land plot status (whether it is mortgaged), the validity of the building permit, and construction coefficients.
- Analysis of Preliminary Purchase Agreement: Detailed review of contract terms: handover deadline, condition (black, white, or green frame), penalties for delays, and force majeure circumstances.
- Registration Support: Mandatory registration of the preliminary purchase agreement in the Public Registry, protecting the buyer from double sales.
- Verification of Bank Guarantees: Determining whether the developer has a bank guarantee or insurance for construction completion.
- Negotiation of Terms: Modifying standard contract terms in the buyer's favor (e.g., adjusting the payment schedule or increasing penalties for the company).
Common Real-World Scenarios
In practice, buyers often face serious problems such as:
- Construction Suspension: The developer failed to mobilize funds, and construction stopped indefinitely. If the contract is not drafted correctly, the buyer struggles to get their money back.
- Area Discrepancy: After construction, the apartment's square footage turns out to be less than agreed. With legal help, compensation or price recalculation can be claimed.
- Double Sales: An unscrupulous company sold the same apartment to two different people. This happens when the preliminary agreement is not registered in the Public Registry.
- Mortgaged Land: The building is finished, but the buyer cannot register ownership because the developer has pledged the land to a bank and cannot repay the debt.
Georgian Legal Framework
Off-plan property purchases are regulated by the Civil Code of Georgia and the Law on Public Registry. Legislation explicitly requires a written preliminary purchase agreement for property under construction, which must be registered in the Public Registry. This registration grants the buyer priority rights over other creditors. Also important is the Law of Georgia on Protection of Consumer Rights, which provides certain guarantees to individuals against unfair terms in standard contracts. Regarding construction quality and safety, the Code of Spatial Planning, Architecture and Construction Activities of Georgia applies.
Process: How does a specialist work?
The process begins with vetting the developer. The lawyer requests an extract from the Public Registry regarding the land plot and checks the building permit in the City Hall database. Then, the draft contract is processed — the lawyer marks risky clauses with "red lines" and proposes alternative wording. Once an agreement is reached, the lawyer attends the signing process at the Public Service Hall to ensure registration is successful. After construction is complete, the specialist assists the client in signing the handover act and registering the final ownership right.
Why Legal.ge?
Legal.ge is a platform that connects you with experienced real estate law experts. Buying an off-plan apartment is a significant financial risk, and trusting a developer "on their word" often ends in disaster. Our specialists will help you see hidden dangers, verify the developer's reputation, and sign a contract that allows you to sleep peacefully. Find your trusted advisor on Legal.ge and invest safely.
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