How to check a developer and a new build's documents in Georgia

Georgia has no escrow accounts and no mandatory buyer insurance: money goes straight to the developer, so due diligence is the buyer's only protection. It takes a day and costs almost nothing.

What to check in the Public Registry

1. Land. The extract for the plot (by cadastral code) should show the developer as owner or as lessee for the whole construction period. A plot pledged to a bank is normal for a construction site, but must be reflected in the contract.
2. Building permit. Issued by the city hall; its number and date should be in the contract. Without a permit sales are illegal, however many floors are standing.
3. Project. The floor count and use in the permit must match what is sold: an "apartment" in a hotel complex and a "residential flat" are different things for residence permits and taxes.

Registry extracts are available to anyone for 15–50 GEL, including online.

What to request from the developer

• Corporate documents and the company extract (Registry of Entrepreneurs).
• A list of completed buildings with addresses — and go and see at least one.
• The construction schedule with photo reports; compare the declared and the actual stage.
• The standard contract in advance, not on signing day.

Signs of a reliable project

• The company has completed several buildings in the same city on time (±1–2 quarters).
• Construction is moving, with machinery and people on site, not just a fence with a render.
• The price is not 30 % below market — very cheap projects most often raise money to finish previous ones.
• Bank project financing or a known hotel operator in the project.

Red flags

Sales without a permit "pending approval", pressure that "the price rises tomorrow", refusal to show registry extracts, a contract without dates and penalties, demands for cash payment.

How we do it

The developer pages collect all of a developer's projects in the catalog — the portfolio shows who actually completes what. Before a deal we request the extracts and the permit and check the contract against the points above.