Javascript is required

How to safely conduct a real estate deal in Georgia?

286
2/3/2023

A real estate deal is a serious decision that requires a balanced analysis and careful exploration of the details. The cost of error can be quite high. 
In order to reduce all possible risks and to protect all participants of the deal as much as possible, we will review several effective tools that have proved themselves effectively in practice.

Carefully explore the real estate market

The search for a suitable placement can take quite a long time. In order not to get lost in the variety of choices and speed up the process, try all possible ways of selecting a real estate object. There may be several options here:

  • explore real estate search sites by yourself (for example, myhome.ge, ss.ge);
  • use the services of an agent (in Georgia they are called “brokers”);
  • contact the developer directly (if you want to purchase an object at the construction stage);
  • search for a placement in the city, paying attention to outdoor ads on windows and buildings

During the process of searching, certain difficulties may arise, one way or another, you will have to be patient.
Ads on aggregator sites often turn out to be outdated, a call to the specified number may simply remain unanswered. A similar situation frequently occurs when checking outdoor ads pasted on buildings. Without the help of an interpreter, the conversation may not take place at all, because the owners of the premises mostly communicate only in Georgian. Firstly, it is necessary to carefully check the information received here, and also, if possible, to get contacts of reliable real estate agents, preferably with knowledge of the Georgian language.
Contacting agents will save you from a number of problems, but cooperation with them does not guarantee a quick solution to the issue. The work standards of real estate agents in Georgia may not always meet your high requirements.
When buying real estate at the construction stage, additional risks also arise that require a thorough check of both the object itself and the developer.
Before you start looking for a place to buy or rent, we recommend you to take a few steps.

Get professional consultation about the state of the real estate market

This will help immediately at the search stage to abandon dubious options with illegal registration of the deal, as well as to learn more about the state of the real estate market in Georgia as a whole, about pricing, about the practice of transactions and the specifics of their registration.

Estimate the additional costs when closing the deal

Clarify in advance the issues related to taxation, when the rights to real estate appear and the deal is carried out. There are a number of additional costs in the process of making a deal, the main of which are:

  • assessment of the real estate object with the participation of the bank;
  • payment for the services of a technical specialist to explore the object for its readiness for operation (checking engineering systems and communications, the correctness of their connection in the objects of the secondary and primary real estate markets);
  • payment of registration fees;
  • remuneration of the agent/consultant;
  • additional costs when concluding a real estate lease agreement. It is necessary to remember about the collection of rent immediately for the first and last month of rent, as well as about the possible additional amount as an insurance deposit. An important fact when concluding a lease agreement is the legal status of the landlord. It can significantly affect taxation. For example, if you rent an office from an individual, and the lease agreement is concluded with your company, then in accordance with Georgian law, it is you who will be required to pay personal income tax (25%);
  • legal services.

Think through all the legal aspects of a real deal in advance

To avoid fraud and safely register a real estate deal, strictly adhere to the following rules:

  1. Thoroughly study the documentation to make sure that the seller / landlord is the true owner of the property. The data on the ownership of real estate registered with the national public registry agency must correspond to reality.
  2. Make sure that the property itself is correctly registered in the register, and the boundaries and area of the object correspond to the actual ones. Quite often in Georgia, extensions and additional floors remain unregistered;
  3. Make sure there are no encumbrances on this property;
  4. Before starting the construction of your own facility, study the procedure for issuing permits;
  5. Take care of the competent drafting of the contract, collecting the documents necessary for successful registration.

To minimize all possible risks in real estate deal, you can take just one step.

Contact Jara Accounting to conduct a secure real estate deal in Georgia

We will support you at all stages of preparation and execution of a real estate deal. We will conduct a detailed check of the object, its legal status, and collect the information necessary to identify contradictions.
Based on the results of a detailed analysis, you will be able to make an informed decision about buying or renting property, you will be warned about possible risks.
We consult on the main parameters of the real estate market practice in Georgia, talk about the local peculiarities of deals.
Jara Accounting company provides full deal support when making a purchase of real estate, prepares the necessary documentation, registers your right to own property.
We also provide legal services necessary for the purchase, lease, lease or transfer of real estate in another form.
With Jara Accounting, you can be sure of the legal protection of your property.

Book a free consultation
Learn more about our financial, legal, and business registration services from a Jara Accounting employee. Fill the form to apply.