{"id":17519,"date":"2026-08-26T12:38:44","date_gmt":"2026-08-26T09:38:44","guid":{"rendered":"https:\/\/residence-estate.ge\/?p=17519"},"modified":"2026-08-26T12:38:46","modified_gmt":"2026-08-26T09:38:46","slug":"how-to-check-a-developer-in-georgia","status":"publish","type":"post","link":"https:\/\/residence-estate.ge\/en\/guides\/how-to-check-a-developer-in-georgia\/","title":{"rendered":"How to check a property developer in Georgia"},"content":{"rendered":"

An attractive rendering, a recognisable brand name and a bustling sales office \u2013 all of these create an impression of reliability, but do not confirm the legal soundness of a specific project. A brand may have been in existence for years, whilst the individual project company set up for that specific development is only just starting work. The land may be mortgaged. The planning permission may have been granted on terms different from those promised in the advertising. The contract may be drafted in such a way that the buyer bears all the risks, whilst the seller bears almost none.<\/p>\n\n\n\n

A developer\u2019s reliability cannot be confirmed by a single document or a single review.<\/strong> It is necessary to cross-check several independent sources: the NAPR Register of Entrepreneurs, the cadastral extract, planning permission documents, the actual track record of completed projects and the text of the contract. Only by combining all this data can a reliable picture be obtained.<\/p>\n\n\n\n

This article is a practical guide to vetting a property developer and a new-build property in Georgia. It covers four levels of due diligence: the company, the land, the planning permission and the contract. This material is for information purposes only and is not a substitute for an individual legal review of a specific transaction.<\/p>\n\n\n\n

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Short answer<\/h3>\n\n\n\n

No document, bank or well-known brand can guarantee that a house under construction will be completed on time. However, you can significantly reduce the risk before making an advance payment by: verify the seller\u2019s legal status, check the title to the land and any encumbrances, ensure that the valid planning permission matches the advertised project, examine the actual progress of previous and current construction projects, and agree on a contract with phased payments and clear consequences for late payment.<\/p>\n\n\n\n

Do not pay a deposit<\/strong>, if the developer fails to provide the cadastral code, does not supply a copy of the current planning permission, does not explain the relationship between the landowner and the seller, or suggests making a payment to a person not named in the contract. A single red flag does not always indicate fraud, but any discrepancy must be explained in writing before payment is made.<\/p>\n<\/blockquote>\n\n\n\n

What exactly needs to be checked<\/h2>\n\n\n\n

A common practical mistake is to reduce the verification process to a single step, such as reviewing a single statement. In practice, the verification process is divided into four distinct stages, each of which addresses its own category of risks.<\/p>\n\n\n\n

The first level is a legal entity.<\/strong> It is the specific party that signs the contract, receives the payment and bears responsibility. This may not necessarily be the same as the brand, the group of companies or the company that built the previous projects.<\/p>\n\n\n\n

The second level \u2014 the plot of land and any encumbrances.<\/strong> Who is the owner, on what basis is the developer using the plot, are there any mortgages, charges or other restrictions, and how do these affect the flat being purchased?<\/p>\n\n\n\n

The third level \u2014 project permissions and settings.<\/strong> Is there a valid planning permission in place, what exactly has been approved under it, and do these specifications match what is shown in the advert?<\/p>\n\n\n\n

The fourth level \u2014 the contract, financing and the procedure for registering the right.<\/strong> How does the payment scheme work, who receives the money, what is the procedure for lifting the encumbrance, and how are the buyer\u2019s rights secured before the building is commissioned?<\/p>\n\n\n\n

It is essential to distinguish between: property developer\u2019s brand<\/strong> \u2014 this is a trade name; group of companies<\/strong> \u2014 is a group of legal entities with different functions; project developer<\/strong> \u2014 a specific company that has been granted authorisation; landowner<\/strong> \u2014 may be an individual; a company that accepts money<\/strong> \u2014 may not correspond to any of those listed. Understanding this structure is the top priority.<\/p>\n\n\n\n

Subject of the audit<\/th>What to install<\/th>Where to look<\/th>Main risk<\/th><\/tr><\/thead>
The selling company<\/td>Legal name, ID, signatory\u2019s authority<\/td>NAPR Register of Entrepreneurs<\/td>The contract was signed by a person without authority or by a non-existent company<\/td><\/tr>
Land plot<\/td>Owner, encumbrances, intended use<\/td>NAPR public register, cadastral extract<\/td>Mortgage, seizure or non-compliance with the permitted use<\/td><\/tr>
Planning permission<\/td>Holder, details, validity period<\/td>Local authority, planning permission<\/td>The authorisation has expired, was issued for different parameters, or has been revoked<\/td><\/tr>
Actual progress of the construction work<\/td>Construction progress, adherence to deadlines<\/td>Site inspection, completed projects<\/td>Construction freeze, failure to deliver on promises<\/td><\/tr>
Contract<\/td>Liability of the parties, terms of payment, registration of title<\/td>Analysis of the contract text, independent solicitor<\/td>A loss of money without any real protection of the buyer\u2019s rights<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Rapid risk assessment<\/h3>\n\n\n\n
Level<\/td>What has been discovered<\/td>Decision<\/td><\/tr>
Green<\/td>The seller and the payee have been identified; title to the plot has been confirmed; the planning permission is valid and complies with the development plans; any significant encumbrances are explained in the documentation; the contract specifies the subject matter, timeframes, liability and the registration procedure<\/td>You can now proceed to an independent review of the contract and a re-check of the registers before making payment<\/td><\/tr>
Yellow<\/td>The land or planning permission is registered in the name of an associated company; there is a bank mortgage; the project has recently been amended; the deadlines for previous projects have been extended<\/td>Do not automatically decline, but request details of the contractual relationship between the companies, bank documents, the latest changes to the project and a written explanation of the timelines<\/td><\/tr>
Red<\/td>They refuse to provide a cadastral code or a permit; the information in the advertisement differs from the documents; they ask for the money to be transferred to a third party; the signatory\u2019s authority has not been verified; the contract allows for unlimited changes to the property or does not specify a clear refund in the event of termination<\/td>Do not transfer any money until the discrepancy has been resolved; forward the documents to an independent Georgian lawyer<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

This is neither a reliability rating nor a legal opinion: the outcome depends on the specific project documents and the contract.<\/p>\n\n\n\n

What to get before making a booking or paying a deposit<\/strong><\/p>\n\n\n\n

Before making your first non-refundable payment, ask the seller:<\/p>\n\n\n\n

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  1. the full name and registration number of the selling company;<\/li>\n\n\n\n
  2. the cadastral code of the plot of land;<\/li>\n\n\n\n
  3. a recent extract from the land registry and a cadastral plan;<\/li>\n\n\n\n
  4. a planning permission and any amendments made to it;<\/li>\n\n\n\n
  5. a document confirming the developer\u2019s right to use the plot, if they are not the owner;<\/li>\n\n\n\n
  6. a draft contract, including all annexes, the flat plan and the finishing specifications;<\/li>\n\n\n\n
  7. construction and payment schedule;<\/li>\n\n\n\n
  8. bank documents confirming consent or the procedure for releasing the flat from the mortgage, if the plot of land is mortgaged;<\/li>\n\n\n\n
  9. a list of completed projects carried out by the specific legal entity that is liable under the contract.<\/li>\n<\/ol>\n\n\n\n

    Failure to provide one of the documents does not automatically constitute bad faith. However, before making payment, it is important to understand the reason for the document\u2019s absence and the legal consequences.<\/p>\n\n\n\n

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    Don\u2019t want to go through dozens of projects from scratch?<\/strong>
    Please answer a few questions about the city, your budget, the stage of construction and your risk tolerance. We will then suggest options for you to compare and review the relevant documents.
    [Take the quiz]<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n

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    Checking the property developer<\/h2>\n\n\n\n

    Before reading the project presentation, you need to ensure that: Who exactly will sign the contract and receive the money?<\/strong>. It is not always the company whose name is written on the construction site banner.<\/p>\n\n\n\n

    Full legal name and registration number<\/strong> \u2014 the first pieces of information you need to obtain from the sales department. Request the company\u2019s official name and identification number, and obtain a current extract from the Register of Entrepreneurs of the National Agency for Public Registry of Georgia (NAPR) via official website<\/a>. Check the registered partners or shareholders (to the extent possible), authorised representatives, the company\u2019s status and the history of registration changes. The trading name under which the developer operates may differ from the official name of the registered organisation. The extract does not always reveal the full structure of beneficial ownership.<\/p>\n\n\n\n

    You can determine this from the register date of registration<\/strong> company. This is important: a brand may have been in existence for ten years, whilst the specific legal entity may have been set up just a year ago specifically for this project. Such a structure is not in itself a breach, but it does mean that the \u2018brand\u2019s track record\u2019 is not the same as that of the selling company.<\/p>\n\n\n\n

    It is important to ensure that the person signing the contract has genuine authority: this must be confirmed by the articles of association or a power of attorney, and not merely by the title on their business card.<\/p>\n\n\n\n

    Design firm<\/strong> \u2014 a separate entity that a developer may set up for a specific project. If it is this company, rather than the group as a whole, that bears the financial and construction liabilities, the buyer must be aware that, should any problems arise, the parent company may not be directly liable to them.<\/p>\n\n\n\n

    Check that the seller is the same as the payee named in the contract. If the payee is a different party (a bank, an affiliated company or another entity), before making the payment, obtain and check the written contractual basis, the payee\u2019s authorisation, the purpose of the payment and the consequences of transferring the funds specifically to that party.<\/p>\n\n\n\n

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    Company registration confirms its legal existence and the details on file, but does not confirm its financial stability, nor does it guarantee that the construction will be completed.<\/p>\n<\/blockquote>\n\n\n\n

    The following deserve special attention: active restrictions and pledges<\/strong> with regard to the company itself. The Register of Businesses does not contain all the information regarding the organisation\u2019s financial position. Legal disputes involving the company can be tracked via public sources, although a comprehensive analysis requires the involvement of a lawyer.<\/p>\n\n\n\n

    The size of the declared capital or the fact that the project company was only recently registered does not in itself allow us to assess whether there will be sufficient funds to complete the building. In practical terms, it is more important to establish the sources of funding, the existence of a bank loan, the actual pace of construction, the assets and completed projects of the responsible legal entity in particular, as well as the terms of the contract in the event of delays or insolvency. Some financial documents may be withheld; the lack of access must be offset by a more secure payment arrangement and an independent legal due diligence review.<\/p>\n\n\n\n

    A list of questions you should put to the sales department before making any payment:<\/strong><\/p>\n\n\n\n