Closing a Transaction — What It Means Under Georgian Law
Closing a real estate transaction describes the process by which an agreed deal reaches legal completion: the contract is concluded in the required form, the signatures are affixed, and the right is registered in the public registry. The Georgian system is built on the registration principle: ownership under a transaction passes only at the moment of registration.
Article 183 of the Civil Code provides that the acquisition of an immovable requires the conclusion of the transaction in written form and the registration in the public registry of the acquirer of the ownership right defined by that transaction. These elements — form and registration — together constitute the complete cycle of closing, and omitting either leaves the transaction incomplete.
Written Form — the Requirement of the Disposal Contract
The form requirement is set at two levels. Under Article 323, a contract by which one party undertakes to transfer ownership of an immovable to another or to acquire it requires written form — this is the level of creating the obligation. At the level of transfer of ownership, the rule of Article 183 applies: the transaction is concluded in writing and registered.
The procedure for submission to registration is set by Article 311-1: a transaction concluded in written form must be submitted, and the transaction or the authenticity of the parties’ signatures must be certified in the manner established by law. An alternative exists: where the parties sign the transaction at the registering authority in the presence of an authorised person, certification of authenticity is not required. In cases provided by law, transactions enter into force from the moment of the registration of the rights they define — that moment is the endpoint of the closing.
The Registry Presumption — the Reliability of the Basis
At closing the parties rely on the data of the public registry, and the Code gives those data a special status: a presumption of authenticity and completeness operates with respect to registry data — registry entries are deemed correct until their inaccuracy is proven.
For the acquirer the protection is even broader: in favour of a person who acquires a right from another on the basis of a transaction, where that right was registered in the name of the alienor, the registry entry is deemed correct except where a complaint has been filed against the entry, or the acquirer knew the entry was inaccurate. And further: where the owner alienates or encumbers immovable property, demanding the consent of a co-owner at the conclusion of the transaction is inadmissible if that co-owner is not registered in the public registry — in the acquirer’s interest, the alienor is deemed the sole owner where it is so registered, unless the acquirer knew that another co-owner exists.
The Content of the Sale — Constituent Elements of the Closing
Closing is not exhausted by formalities: the basis of the transaction is the sale contract. Under Article 477, the seller must transfer to the buyer the right of ownership in the property, the documents connected with it, and deliver the goods; the buyer must pay the agreed price and take delivery of the purchased property. The price, where not directly indicated, may be agreed by way of determination means.
The practical checklist of closing grows out of these frames: the contract precisely describes the property, the price and the payment method; the transfer of documents and delivery is documented; and the registration is completed with the participation of all parties. The delivery act — with keys, a description of condition, meter readings — is the concluding document of this cycle.
How We Help
We carry real estate transactions through the full cycle of closing: verifying the registry and the seller’s rights, preparing the contract and the delivery act, fixing payments, and accompanying the process to registration. Contact us — a properly closed transaction needs no subsequent defence.
Frequently Asked Questions
Below we answer the questions most frequently raised about this field.
What is required to acquire ownership of immovable property?
Conclusion of the transaction in written form and registration of the acquirer in the public registry — together they constitute the complete fact of acquisition.
How is a transaction registered?
A written transaction must be submitted, and the transaction or the authenticity of signatures certified. Signing at the registering authority before an authorised person replaces certification.
What force does a registry entry have?
A presumption of authenticity and completeness: the entry is deemed correct until its inaccuracy is proven. The acquirer’s protection lapses only where a complaint is filed or the acquirer knew of the inaccuracy.
Is a co-owner’s consent required?
Only where the co-owner is registered in the registry. Demanding the consent of an unregistered co-owner is inadmissible — unless the acquirer knew of their existence.
How We Help on Legal.ge
The practical checklist of closing consists of three blocks. First — verification of the registry: the seller’s right, encumbrances and restrictions, the registration of co-owners. Second — the quality of the contract: a precise description of the property, the price and payment schedule, the date of delivery. Third — the registration process: the correct form of certification and the presence of the parties.
Passing these three blocks in sequence leaves the closing free of risks: the registry presumption protects the buyer only where the registry has been read without omissions, and ownership does not pass without registration. A closing built by our team rests precisely on that sequence.