Property Title Examination is the most critical stage in the real estate acquisition process, aimed at determining the legal "cleanliness" of a property. In Georgia, although the Public Registry is electronic and transparent, simply viewing an extract is often insufficient to fully rule out risks. A thorough title examination involves investigating not only the current status but also the property's history, past transactions, inheritance issues, and hidden liabilities. This service is essential for a buyer to avoid severe consequences such as the annulment of the purchase agreement, loss of the property, or inheriting someone else's debts. An examination conducted by a qualified lawyer is the main guarantee for protecting your investment.
What does this service cover?
The property title examination service is comprehensive and includes several important components:
- Analysis of Public Registry Data: Detailed study of not just the fresh extract, but also the registry of applications and cadastral map to determine if there are any registered liens, mortgages, or easements.
- Historical Research: Investigating the property's ownership history back to the "original source" (e.g., privatization documents) to rule out past errors or illegal alienations.
- Litigation Check: Verifying whether there are ongoing court disputes against the owner or the property itself, which may not yet be reflected in the Public Registry.
- Corporate Document Review: If the seller is a legal entity, verifying the director's authority and minutes of the partners' meeting regarding the sale.
- Marital Status Analysis: If the property was acquired during marriage, checking the necessity of spousal consent to avoid future disputes over co-ownership.
Common Real-World Scenarios
In practice, there are many cases where superficial checks have harmed the buyer. Here are some examples where this service is essential:
- Hidden Heirs: Upon purchasing an apartment, it turned out that the seller inherited the property, but the process ignored another heir living abroad who later claimed their share.
- Risk of Seizure: The property appears "clean" in the extract, but there is an ongoing lawsuit against the seller for another obligation, and seizure is only a matter of time.
- Properties Under Construction: A developer is selling an apartment that has not yet been commissioned. It is necessary to check the land status, building permit, and whether this specific unit is already burdened by a bank mortgage.
- Area Discrepancy: According to registry data, the apartment is 100 sq.m., but actual measurement reveals that part of it is a common hallway or attic, legitimizing which is problematic.
Georgian Legal Framework
Property title examination relies on the Civil Code of Georgia, which defines the concepts of property acquisition, transfer, and the bona fide purchaser. Crucially, the Law on Public Registry regulates the rules for registering rights to immovable things and the presumption of publicity. Although the registry record is considered accurate until proven otherwise, there are exceptions (e.g., transactions concluded through fraud or duress) that the Civil Code recognizes as void. The Law on the Rule of Performance of Notarial Acts is also relevant, especially regarding inheritance certificates.
Process: How does a specialist work?
Working with a lawyer begins with providing the cadastral code. In the first stage, the specialist requests an updated extract and archival documentation from the Public Registry. Simultaneously, the seller's legal status is checked (whether they are solvent, or listed in the debtors' registry). If the seller is a company, the lawyer studies its charter and partners' decisions. After completing the analysis, the lawyer prepares a written Legal Opinion detailing the property status and identified risks. If necessary, the lawyer provides recommendations on insuring risks or inserting special protective mechanisms in the contract.
Why Legal.ge?
Real estate is often the largest purchase in a person's life. On Legal.ge, you will find real estate law experts who have access to necessary databases and experience in researching properties with complex histories. Our specialists do not rely only on superficial data and investigate every detail "in-depth." Do not risk your capital — check the property with professionals on Legal.ge before closing the deal.
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