The Legal Nature of an Apartment Sale Transaction
The sale of an apartment in Georgia takes the form of a contract of sale regulated by the Civil Code. Under Article 477, by the contract of sale the seller is obliged to transfer to the buyer the right of ownership in the property, to hand over the documents connected with it and to deliver the goods. The buyer, in turn, is obliged to pay the seller the agreed price and to accept the purchased property. This is a bilateral transaction: the right of each party is secured by the obligation of the other, and that is precisely why the accuracy of the contract text is decisive.
In the context of an apartment, this means that the transaction must clearly define the specific apartment being transferred, the seller's obligation to transfer ownership of it together with the related documents, and the buyer's obligation to pay the agreed price. If the price is not directly indicated in the contract, the parties may agree on the means of its determination — although in practice a precise and direct fixation of the price in the document is always the safer solution, because it removes any ground for later disagreement.
The Costs of Execution, Registration and Documents
Article 479 of the Civil Code establishes the default rule on the costs of selling an immovable — a land plot or any other immovable, an apartment included: the seller bears the costs of executing the contract of sale, of registration in the public registry and of submitting the documents necessary for it, unless otherwise provided by the contract on the basis of the parties' agreement.
This norm is dispositive: the parties may agree on a different allocation of costs, but if no such agreement exists, it is the seller who carries the costs connected with execution and registration. Before signing, it is therefore important for the parties to settle this question explicitly and record it in the document — otherwise the statutory rule applies automatically, and a misunderstanding discovered later can turn into a dispute.
Selling an Apartment with a Defect: The Seller's Obligations
If the sold item has a defect, then under Article 490 of the Civil Code the seller must either cure the defect or, where the matter concerns a generic item, replace the item within the period necessary for that purpose. In the context of an apartment sale the notion of a defect is broad: it can cover defects that the object has at the moment of the transaction, and the statutory obligation of the seller arises regardless of how the defect is labelled in everyday speech.
The seller is also obliged to reimburse the expenses necessary for curing the defect, including the costs of transportation, road, performance of work and materials. The same article allows the seller to refuse both the cure of the defect and the replacement of the item only where this requires disproportionately large expenses. And where the seller, for the purpose of curing the defect, hands over to the buyer an item free of defects, the seller may demand from the buyer the return of the defective item.
Limiting or Excluding Liability by Contract
Under Article 497 of the Civil Code, the seller's liability for the sale of a defective item may be limited or excluded by the contract — but such an agreement is void if the seller deliberately kept silent about the defect of the item. A clause in the contract that limits liability will therefore not protect a seller who intentionally concealed a defect of the apartment from the buyer.
It is exactly because of this norm that the draft of an apartment sale transaction is a legally significant document: it should reflect which defects the parties know of, for which of them the seller does not answer, and which are the subject of the obligation to cure. Deliberate silence renders such clauses void, while a clear formulation of the conditions makes the risks foreseeable for both parties.
Planning the Apartment Transaction Correctly
Articles 477, 479, 490 and 497 of the Civil Code together create the minimal framework that an apartment sale transaction must take into account: the mutual obligations of the parties, the determination of the price, the allocation of costs, liability for defects and the limits of its restriction. Questions outside this framework — for instance, the detailed procedure for registering ownership — are governed by other provisions of the legislation. A lawyer's participation in the transaction means that all these elements are reflected in the document consistently and in accordance with the parties' interests.
A sale agreement takes effect through registration: the stages of signing, re-registration and the extract are described in detail in the transfer procedures overview.
Frequently Asked Questions
Who bears the costs of executing and registering an apartment sale?
By law — the seller: the costs of executing the contract of sale, of registration in the public registry and of submitting the necessary documents, unless the contract provides otherwise. The parties may agree on a different allocation.
What are the seller's obligations if the apartment has a defect?
The seller must cure the defect or, where the matter concerns a generic item, replace it within the necessary period. The seller also reimburses the expenses necessary for the cure, including transportation, road, work and materials.
Can the seller's liability be excluded by contract?
Liability may be limited or excluded, but such an agreement is void if the seller deliberately kept silent about the defect of the item.
What happens if the seller hands over an item free of defects?
Where the seller, for the purpose of curing the defect, transfers to the buyer an item free of defects, the seller may demand from the buyer the return of the defective item.
What if the price is not directly indicated in the contract?
The parties may agree on the means of determining the price. For an apartment transaction, however, a direct and precise indication of the price is the safer approach.
How We Help on Legal.ge
On Legal.ge you will find real-estate lawyers who will help you prepare and carry out an apartment sale transaction: drafting the contract, formulating the allocation of costs, correctly recording liability for defects and assessing the risks connected with the deal. Choose a specialist by profile and experience and contact them directly on the platform.