The Presumption of Reliability of Registered Data
Legal due diligence of real estate rests on the norms of the Law on the Public Registry, represented here by Articles 5, 6, 7, 10 and 19. The foundation is Article 5: a presumption of reliability operates towards data registered in the public registry unless they are declared no longer in force, void or nonexistent by the procedure established under Georgian legislation. A registry entry is therefore the starting level of truth, overturned only as the law provides.
Due diligence works with this presumption: retrieve the registered data, check their completeness, and identify cases where an entry has been declared no longer in force or void. A seller's verbal assurance cannot replace the presumption — what matters is what the registry says.
The Extract from the Public Registry and Its Content
Article 10 provides that an extract from the registry of rights to immovable property is prepared on the basis of the unified databank of the registries of rights, public-law restrictions, tax liens or mortgages, and debtors, and reflects the data registered in those registries and in force at the moment of preparation. An extract thus combines the full picture of rights, restrictions and obligations as of a given moment.
The extract is issued to any person and prepared together with the decision on registration; where registered data exist, upon payment of the corresponding fee. Especially important: when effecting a transaction or another legal act concerning an immovable — apart from establishing the right of inheritance — the interested person's authority is established only by an extract. In audit practice, verifying the counterparty's authority without an extract is impossible.
Requesting Information and the Period for Additional Documents
Article 6 governs decisions connected with access to information. When a request is made, the registering body may set a 30-day period for additional information or documents where the request's content cannot be understood or the information cannot be identified; where the document or information defined by legislation is not attached; or where another case defined by legislation exists.
While such a period is running, review is suspended and renewed only when the requested information or document is submitted or the ground for suspension is removed. If the materials are not submitted, the application is left unexamined. Refusals, the setting of periods and leaving an application unexamined are each covered by a decision of the registering body, appealable under the established procedure. For an audit this dictates time planning: a defective request can freeze the process for a full month.
The Registry of Public-Law Restrictions and Transaction Safety
Article 19 defines the registry of public-law restrictions as the totality of data on the creation, change and termination of seizures, restrictions on the right of disposal and prohibitions, including registration bans, imposed by a court or other administrative bodies in the manner established by law. Such an entry is a real blockade for a deal: the registration of a public-law restriction precludes the registration of any other right or of the abandonment of ownership over that item, unless the registration document provides otherwise.
The law sets out exceptions — the legal successor of the owner or right-holder, and an act of a court or arbitration in legal force — and defines when a registered seizure or prohibition is declared no longer in force. Where a change contradicting the restriction is requested, the decision connected with the restriction is taken first, then the decision on the other right; the written consent of the initiator of the restriction removes the ground for refusal. Identifying and classifying such restrictions is the core of the audit.
Electronic Administration and Service Rules
Article 7 lays down the general principles of the operation and accessibility of the public registry: the agency is authorised to store as an electronic copy and to issue any document created by it or held with it, and to receive, produce or issue any information or document using unified automated means of administration. The application and attached data may then be submitted, and the document issued, through any territorial registration service or an authorised person.
Data in an issued document may be entered by mechanical or electronic means, and the content and form of the extract are determined by an instruction. Practically, document circulation is not tied to the property's location: retrieval and issuance happen within a unified system, which speeds up the review.
Frequently Asked Questions
Why is the seller's verbal assurance not enough?
A presumption of reliability operates towards data registered in the public registry, and in a transaction the interested person's authority is established only by an extract. The property's status must therefore be checked against the registry's data.
To whom does the registering body issue an extract?
The extract is issued to any person; it is prepared together with the decision on registration, and where registered data exist — upon payment of the corresponding fee.
What happens if the request is unclear or a document is missing?
The registering body sets a 30-day period for additional information or a document; review is suspended meanwhile, and if the materials are not submitted the application is left unexamined.
What is a public-law restriction and how does it affect a transaction?
It is data recorded in the registry about a seizure, a restriction on disposal, a prohibition or a registration ban. Its existence limits or blocks the registration of other rights, unless the registration document provides otherwise.
Where can an extract be requested?
Administration is unified: applications may be submitted through any territorial registration service or an authorised person, and the document is issued electronically.
How We Help on Legal.ge
On Legal.ge we conduct legal due diligence of real estate: we retrieve and assess extracts, identify public-law restrictions, verify the counterparty's authority and prepare a conclusion on the risks. Contact us — we will evaluate your target and plan a safe transaction.