Purchasing an apartment is a significant event in each of our lives – a new apartment means living in a new environment that is more comfortable, pleasant, and diverse.

At such times, a person faces a choice: whether to buy an apartment in a newly constructed building or an old one, whether it is better to buy an apartment in a building or a private house with its own land plot, whether it is more advantageous to buy an apartment during the construction process or in a completed building, etc. Accordingly, acquiring real estate can be quite a problematic process and requires greater attention to nuances, especially in the legal aspect.

– Purchasing an apartment in a building under construction has many advantages, such as: a lower price, the ability to monitor construction stages, more options, etc., however, there are also certain risks... Therefore, attorney Nikoloz Pkhaladze advises that:

– When acquiring real estate, especially before signing a preliminary sale agreement or the main sale agreement, very detailed scrutiny is necessary.

For example, it is preferable to check the selling company in the entrepreneurial register to determine whether there are any prohibitions or seizures that may cause problems in the future. In addition, it is advisable to check the status of the real estate to be purchased, in order to rule out any restrictions, mortgages, or other obligations to third parties on the property.

Furthermore, to be more specific regarding the apartment under construction – it must have an individual cadastral code, and before you purchase it, the code should be updated prior to signing the contract.

Most often, due to the emotions caused by purchasing an apartment, it becomes difficult to realize the risks that may subsequently result in material damage or restrictions on the use of your own property.

– Is Preliminary Registration of an Apartment Under Construction Necessary?

– As is known, when purchasing real estate, the law requires its registration with the LEPL Public Registry. Especially in the case of an apartment under construction, whether it is a preliminary sale agreement, an installment sale, or any other form – once the agreement is signed, it must be registered with the LEPL Public Registry.

In such cases, the buyer's status and the status of the future owner will be established, which provides maximum protection that the acquired property is legally registered to the buyer and eliminates the possibility of the same property being resold to another person, which, according to Georgian court practice, is very common.

Companies, as a rule, conclude agreements with customers outside the Public Registry, so that in case of changes to the terms of the agreement, they do not have to undergo additional procedures.

– What Should Be Included in the Sale Agreement?

The sale agreement for an apartment under construction must regulate such issues as, for example: the deadline and period for completion of construction, as well as what is considered a completed construction (by agreement of the parties), within what period the building is delivered for use, or what sanction should be imposed on the selling company in case of non-fulfillment of obligations, and so on.

– How Problematic Is a Mortgage Indicated in the Real Estate Extract?

A registered mortgage indicated in the real estate extract is a proprietary right, which implies that in the event of the realization of the real estate, the debt to the mortgagee is covered as a priority.

It should be taken into account that a mortgage, as a restriction registered in the Public Registry, cannot be considered a legal defect, since according to the principle of publicity of the Public Registry, it is assumed that the buyer of the apartment is aware of the information about the mortgage and does not make any claims.

If you have any questions, please contact us.

Attorney Nikoloz Pkhaladze

Law Office "Pkhaladze & Partners"