Property Sale Agreement in Georgia: A Complete Guide
3 minute read | Last Updated 1st November 2025
Written by: Lela Gochitashvili
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Introduction
A property sale agreement is at the core of every real estate transaction, and real estate remains one of the most reliable forms of investment in Georgia. Whether you are buying an apartment, a commercial space, or land, understanding how a property sale agreement works is essential for securing ownership and protecting your investment. In Georgia, property ownership is legally recognized only after registration in the Public Registry, which ensures that the property belongs to you and is safeguarded from third-party claims. This article explains the two main stages of a property sale agreement, the Preliminary and Final Sale Agreements, and outlines key procedures related to registration, taxation, and representation.
What Is a Property Sale Agreement?
A property sale agreement is a legally binding contract between the buyer and the seller that outlines the terms of a real estate transaction. In Georgia, this process typically happens in two stages:
- Preliminary Sale Agreement: signed when the property is still under construction, giving the buyer the right to future ownership.
- Final Sale Agreement: signed after construction is complete, transferring full ownership to the buyer.
Both stages are crucial parts of a property sale and must comply with local registration and legal standards.
Preliminary Sale Agreement
The Preliminary Sale Agreement is the first stage of the property sale and is especially common in new development projects. It grants the buyer the right to purchase a property that is still being built and ensures their future ownership.
Why registration matters:
- Once the preliminary property sale agreement is registered in the Public Registry, the buyer gains legally protected “future ownership.”
- No other rights (such as mortgages or servitudes) can be registered on the property.
- The process increases transparency and gives confidence to both buyers and financial institutions.
Registering the Preliminary Sale Agreement ensures that your investment is secure from the very beginning.
Final Sale Agreement
The Final Sale Agreement marks the completion of the property sale process. Once construction is finished, ownership is officially transferred to the buyer.
This involves:
- Executing the final property sale agreement between the buyer and seller
- Registering ownership rights in the Public Registry
- Officially transferring the property title to the buyer
From this moment, the buyer becomes the full and lawful owner of the property.
Property Sale Agreement via Power of Attorney
If the buyer or seller cannot be physically present in Georgia, the property sale agreement can be completed through a legal representative using a Power of Attorney (PoA).
If the PoA is issued abroad:
- It must be notarized in the foreign country
- Apostilled (if the country is a party to the Hague Convention) or legalized (if not)
- Officially translated into Georgian and notarized locally
In Georgia the transaction must be notarized to confirm that the representative has valid authority.
This ensures that the property sale agreement remains legally binding even when signed by a representative
Registration Procedure
Registering your property sale agreement in the Public Registry is what legally makes you the owner.
Steps include:
- Submitting an application
- Presenting the agreement, ID, and notarized PoA (if applicable)
- Paying the registration fee
- Receiving confirmation from the Public Registry
The registration fees are as follows:
- 4 business days: 150 GEL
- 1 business day: 270 GEL
- Same day: 350 GEL
Once the registration is complete, the buyer’s name appears on the official Public Registry extract as the lawful owner.
Property Tax in Georgia
After finalizing a property sale agreement, every owner in Georgia must pay property tax. This tax supports municipal infrastructure and public services.
- Individuals pay tax based on annual income. No tax if income is ≤ 40,000 GEL (subject to reform). If income is > 40,000 GEL, the rate is 0.05%–1% of the property’s market value, set by the municipality.
- Legal entities pay tax based on property value, regardless of income.
Failure to pay property tax can result in fines.
Conclusion
Buying real estate in Georgia is a straightforward process when the property sale agreement is properly managed. The transaction typically involves two stages: the Preliminary Sale Agreement, which establishes future ownership, and the Final Sale Agreement, which completes the transfer of ownership rights.
By registering the property sale agreement in the Public Registry, you ensure full legal protection and gain peace of mind knowing that your property truly belongs to you. Whether for residential living, commercial development, or investment, a well-executed property sale agreement is your key to safe and reliable ownership in Georgia.
