Property Due Diligence is a critical procedure that precedes any prudent investment or property acquisition. In Georgia, where the real estate market is developing rapidly, it is common to find properties that appear problem-free on the surface but carry hidden legal, financial, or technical defects. These can include old mortgages, unregistered heirs, overlapping boundaries with neighboring plots, or construction restrictions in cultural heritage zones. Purchasing property without legal due diligence is like playing "Russian Roulette"—you might get lucky, but the risk of losing your investment or getting involved in years of litigation is very high. A professional audit is your "insurance policy" that reveals all potential dangers before signing the contract.
What does the Property Due Diligence service cover?
Our service is a comprehensive investigation that checks the property in four main directions:
- Title Cleanliness: Deep analysis of Public Registry data—is the seller the sole and legal owner? Are there any liens, mortgages, or tax pledges? Are there any registered easements (e.g., right of way)?
- Cadastral and Technical Audit: Comparing electronic maps with the actual situation. Ruling out overlapping boundaries. Checking compliance with red lines.
- Urban and Zoning Analysis: What can actually be built on the plot? What are the building coefficients (K1, K2)? Does the property fall into a protected area or recreational zone?
- Litigation History: Searching the court system—is there ongoing litigation regarding this property, or is it threatened by a dispute (e.g., an owner in the process of divorce)?
- Utility Debts: Checking utility company databases to rule out accumulated debts.
Common Scenarios and Needs
Due diligence is essential in various situations: Buying an Apartment Under Construction: The buyer wants to know if the developer truly has a building permit, who owns the land, and how reliable the company's financial status is. Buying a Secondary Market Apartment: There is a frequent risk that third parties are registered in the apartment or there is a dispute among heirs. Buying a Land Plot: The riskiest asset. Often, a buyer purchases a plot to build a house, but the audit reveals that construction is prohibited there or main utility pipes run underground. Buying a Commercial Object: Here, checking existing lease agreements is crucial, as the new owner is obliged to honor old lease terms.
Georgian Legislation and Regulations
The audit process relies on the Civil Code of Georgia (property rights, easements), the Law on Public Registry (presumption of data accuracy), and the Code of Spatial Planning, Architectural and Construction Activities (zoning and permits). Also important are the Civil Procedure Code regarding disputes and the Tax Code for assessing tax lien risks. The audit also considers municipal decrees on general land use plans.
Step-by-Step Process
The audit begins with receiving the property's cadastral code from the client. The first stage involves gathering and analyzing electronic data (Desk Research). In the second stage, if necessary, physical inspection and measurement works are conducted by partner surveyors. The third stage involves requesting additional information from archives or the municipality. Finally, the client receives a detailed written Due Diligence Report, outlining all discovered risks ("red flags") and recommendations on how to resolve them or whether to walk away from the deal.
Why Legal.ge?
On Legal.ge, you will find lawyers specializing in deep real estate research. We are not satisfied with just a superficial check of the registry extract. Our specialists "dig deep" to find details that are not visible at first glance. Our reports are clear, understandable, and practical, allowing you to make an informed investment decision. Do not risk your capital—check the property with Legal.ge experts.
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