The purchase contract for property in Georgia: what to check before signing

1. The parties and their authority

The seller data in the contract is checked against the passport and the registry record: the owner is the one selling. If a representative acts, a notarised power of attorney authorising the sale of this specific property is required. When buying from a company, its registration data, the signatory authority and the absence of bankruptcy are checked; when buying from a developer, that the contracting party matches the land owner.

2. Subject and floor area

The property must be unambiguously defined: cadastral code, address, area by the registry and by the project. For a new build the contract fixes the project area and a rule for recalculating the price if the measured area differs. An area discrepancy with no such rule is a common source of surcharges.

3. Price, currency and settlement

The contract fixes the price, the currency it is expressed in, and the order and timing of payments. It is safer to settle through a bank — a letter of credit or a transfer after registration is confirmed — rather than cash against a receipt. For installments, a payment schedule is attached.

4. Deposit and grounds for refund

The key clause: under what conditions the deposit is returned and under what conditions it is kept, and how much. A refund should be tied to verifiable facts (title not confirmed, deadlines missed by the developer), not left to the seller discretion. Read this clause before signing, not after.

5. Deadlines and liability of the parties

The contract should hold not only the buyer liable for late payment but also the seller or developer for missing the transfer or handover date. One-sided penalties that apply only to the buyer are a signal to revisit the terms.

• The date for handing over the property or commissioning the building, and what counts as a breach.
• Penalties and their caps for both sides.
• Warranties for hidden defects and how they are remedied.
• Termination terms and their effect on money already paid.

6. Registration of title

The contract is the basis for registering the transfer of title at the Public Service Hall; without a record in the public registry, title does not pass. The contract should state who files the documents, within what time and at whose expense. How registration works is covered in a separate guide.

What the buyer representative does

GeoTrust reads the contract on the buyer side: it checks the parties and authority, the subject and area, the settlement, deposit and refund terms, the symmetry of liability and the registration procedure. Disputed wording is negotiated before signing. The fee is reduced by any documented seller commission.