Do Not Rely Solely on the Public Registry Extract — Checking Only the Extract Is Not Sufficient When Purchasing Real Estate

When purchasing real estate, most citizens believe that the public registry extract is a sufficient guarantee to confirm the legal cleanliness of the property. In practice, however, this is often a mistaken and risky approach.

Many buyers make decisions based only on the extract, but in reality, the public registry record does not always provide complete legal security for the transaction.

Why Is the Public Registry Record Not Absolute Protection?

The public registry reflects registered data, but it cannot reveal all legal risks that may be associated with the property.

Main Risks:

1. Forged Power of Attorney or Documentation
It is possible for property to be transferred using a forged power of attorney, falsified identification, or other fraudulent mechanisms. In such cases, even though the owner is formally changed in the registry, the transaction may later be declared void or become disputed.

2. Court Disputes and Contested Ownership
There may be ongoing litigation over the property, a previous transaction may have been appealed, or a third party may have a claim, which is not always fully reflected in the extract.

3. Unregistered Legal Restrictions
In some cases, there are ownership, usage, or other legal restrictions that are revealed only through additional legal due diligence.

4. Fraudulent Schemes
In practice, it is common for individuals to sell problematic property using a temporarily “clean” extract, after which the buyer becomes involved in years-long litigation.

Real Practice

Recently, in my practice, there was a case where a client purchased an apartment whose registry extract appeared to be fully in order at first glance. Later, it was discovered that the apartment had been transferred based on a forged power of attorney, after which it was sold to a bona fide purchaser.

As a result, the buyer faced serious legal risk and their ownership right was threatened by a court dispute.

What Should You Check Besides the Extract?

Before purchasing real estate, it is essential to:

  • Thoroughly verify the owner’s identity
  • Check the authenticity of powers of attorney
  • Analyze the history of previous transactions
  • Research court disputes
  • Study details of liens, mortgages, and restrictions
  • Audit notarial and administrative documentation

The Importance of Professional Legal Audit

Purchasing real estate is often one of the most significant financial decisions. Therefore, relying solely on the public registry extract can be a costly mistake.

Attorney Nikoloz Pkhaladze offers clients a comprehensive legal audit of real estate, which includes:

  • Full analysis of ownership history
  • Legal examination of documentation
  • Identification of fraud risks
  • Assessment of judicial and administrative risks
  • Legal protection of the transaction

Conclusion

The public registry extract is an important document, but not a guarantee of complete security.
Before purchasing real estate, comprehensive legal due diligence is essential to avoid fraud, court disputes, and financial loss.

If you are planning to purchase an apartment, land plot, or commercial space — a preliminary legal audit is your strongest protection.

Attorney Nikoloz Pkhaladze — your legal security in the field of real estate.

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