Property Transfer Based on Leasing Certificate

Introduction and Service Overview

The specifics of the leasing business require that upon a breach of obligation, the process of recovering the property be lightning-fast and minimally bureaucratic. A traditional court dispute means lost time and physical depreciation of the property (such as a car) for the leasing company. To solve this problem, Georgian legislation provides a special, exclusive instrument—the leasing certificate. The property transfer based on a leasing certificate is a legal mechanism that allows a leasing company, based on a special certificate issued by a notary and bypassing the court, to immediately apply to the National Bureau of Enforcement and forcibly recover its property.

This service is designed exclusively for leasing companies and represents the most effective enforcement lever. The leasing certificate acts as a writ of execution. Through it, the goal is not to recover a debt, but to change the possession of a specific physical item (confiscation). Conducting this procedure smoothly and in full compliance with the law requires high legal qualification so that the debtor cannot stall the process due to technical reasons.

What the Property Transfer Based on Leasing Certificate Covers

The service encompasses the complete legal cycle from establishing the breach of contract to the physical handover of the property. The first and mandatory step is sending an official written warning to the debtor (the lessee) regarding the termination of the contract and the voluntary return of the item. The lawyer ensures that this warning is sent in the format prescribed by law and obtains proof of its delivery.

In the second stage, if the debtor continues to ignore the obligation, the lawyer applies to a notary to obtain the leasing certificate. For this, the leasing contract and documentation confirming the delivery of the warning are submitted. After the notary issues the certificate, the service moves to the enforcement bureau. The lawyer files an application with the execution officer, demanding the forced transfer of the property. The service covers coordination with the execution officer, declaring a search for the property (if it is hidden), and attending the actual transfer (confiscation) process so that the acceptance-delivery act is properly drawn up and the company safely receives the item.

Common Situations and Practical Examples

In practice, this mechanism is most often used in motor vehicle leasing. A citizen leased a car for 3 years. In the second year, they stopped paying and stopped answering the phone. The leasing company does not waste time in court. The lawyer sends an official letter, obtains a leasing certificate from the notary within 14 days, and submits it to the enforcement bureau. The bureau declares a search for the car. The police stop the car, and it is transferred to an impound lot, from where the company reclaims it.

Another example involves the leasing of construction equipment and heavy machinery. A company leased bulldozers. Due to debts, the company ceased operations but did not return the equipment, using it on other sites instead. Based on the leasing certificate, the leasing company sends the execution officer to the construction site. The execution officer, relying on the power of the certificate, forcibly confiscates the machinery from the debtor and hands it over to the leasing company's representatives on the spot. This instrument ensures the rapid rescue of business assets.

The Georgian Legal Framework

The rules for issuing a leasing certificate and its enforcement are regulated by the Law of Georgia on Enforcement Proceedings, the Civil Code, and legislation on notaries. The law establishes that a leasing certificate is a document equivalent to a writ of execution. The prerequisites for its issuance are the existence of a leasing contract (even if it is not notarized, the certificate can still be issued according to the rules established by law) and a written warning to the debtor about the breach of obligation.

The legislation strictly protects procedural norms: the debtor must be given a reasonable period (no less than 14 days) to return the item voluntarily. If this procedure is violated, the notary will refuse to issue the certificate. Conversely, if the certificate is issued, the execution officer is obliged to immediately initiate coercive measures to confiscate the property. The debtor has the right to apply to the court and demand the cancellation of the certificate, but filing a lawsuit does not automatically suspend the enforcement, which gives the leasing company a significant advantage.

Step-by-Step Process

The process starts with the breach of the payment obligation. The first stage is the leasing company (or its lawyer) sending an official notification to the debtor demanding the termination of the contract and the return of the property. The second stage is confirming the delivery of this notification and waiting for the legally mandated 14-day period.

In the third stage, if the property is not returned, the lawyer prepares an application and applies to the notary with the evidence. In the fourth stage, the notary examines the documentation and issues the leasing certificate. In the fifth stage, this certificate is submitted to the National Bureau of Enforcement, which opens the enforcement case. The sixth and final stage involves the execution officer physically locating the property, forcibly confiscating it, and physically transferring it to the leasing company (the creditor) via an acceptance-delivery act.

Why legal.ge and the Need for a Lawyer

Enforcement via a leasing certificate is a very fast but technically delicate process. If the warning was sent incorrectly, or if the debtor avoids receiving the mail, the process can reach a dead end. Leasing companies need lawyers who possess skills in alternative delivery methods (e.g., public publication) and swift communication with execution officers so that the property is not lost.

The legal.ge platform is a trusted space in Georgia where the best lawyers specializing in enforcement and leasing disputes are gathered. Through our directory, you can find a professional who will ensure the rapid acquisition of the leasing certificate and the effective protection of your interests at the enforcement bureau. Choose a qualified lawyer on legal.ge and reclaim your business assets promptly and in full compliance with the law.