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Due Diligence In Georgia

Navigating the intricacies of real estate transactions involves more than just buying or selling a property. Among the essential steps, one stands out: the legal inspection of real estate.

At ReInvest, a real estate agency in Georgia, our real estate due diligence service shields you from potential legal pitfalls that could endanger your rights and interests in property ownership.

What does this comprehensive due diligence encompass?

 

Title Registration: Initially, our legal experts delve into public registry records to ascertain property ownership. Following this, risks are evaluated, and your rights are duly secured. However, obviously our due diligence goes beyond that. Generally, under the law of Georgia – data registered in the Public Registry are subject to the presumption of accuracy until they are declared invalid or null. However, it doesn’t protect the buyer from the potential problems existing with neighbors or “squatters”. Therefore, we make sure our clients don’t experience them as well. Property due diligence is especially crucial in old buildings in Tbilisi, because there are often numerous illegal reconstructions made there and disputable properties with neighbors. 

 

Identification of Hindrances: Our lawyers meticulously investigate any encumbrances that might impede the transaction, such as mortgages or easements. We make proper checks related to all the compliance with local municipal laws. The property might seems flawless, but in certain cases some buyer may be left with the property that the seller was just trying to get rid off. Namely, we check on existing lawsuits against the owner, fines related to property, utility bills, any sort of dispute related to the property with the neighbors. Also, we check if all the permits related to renovation of property were duly obtained AND executed by the seller properly.

 

Document Scrutiny: We meticulously review all pertinent documents, including sale agreements, deeds, and leases. While having mortgage in property is widespread practice, we triple check the remaining debt amount of the property seller and request from the bank a document which would protect the real estate buyer from any risks related to transfer of the funds to the seller.

 

Benefit from ReInvest’s seasoned legal team, who swiftly conduct thorough legal assessments of your desired property.

 

Moreover, our real estate agency extends beyond legal assistance to offer various services, including real estate rental property valuation, interior design services in Georgia, renovation services, and more.

We believe that receiving all real estate-related services in Georgia is much more convenient, rather than receiving them from various suppliers.

 

FAQ

 

What does due diligence entail?

 

Legal inspection encompasses a range of legal processes, including risk assessment, property registration, document preparation, and consultation.

Besides this, we normally provide full legal support of real estate transaction in Georgia. It includes making proper contract on deposit for real estate, preliminary contract on purchase, final sales and purchase contract. Additionally we represent the buyer / seller with the counterparty and protect best interests of our client, making everything legal and consulting on best practices in Georgia.

 

 

Why is title registration verification crucial?

 

Ensuring the accuracy of title registration is paramount, as it confirms rightful property ownership. At ReInvest, our lawyers meticulously examine public registry records to safeguard your interests throughout the transaction.

 

 

What additional services does ReInvest provide?

 

In addition to legal support, ReInvest offers many real estate-related services, including property valuation, buying and selling assistance, rental and leasing services, maintenance, repairs, and more.

 

 

FAQ

Where to Invest for Maximum Returns?

Each city boasts unique investment prospects, and our expert team is here to provide tailored insights to guide your decision-making process.

Why Invest in Georgia?

Georgia’s real estate sector is experiencing unprecedented growth, fueled by rising tourism and migration trends. Property values in cities like Tbilisi and Batumi have surged by 30%, with rental prices skyrocketing by 250%.

Where to invest in Georgia? Tbilisi, Batumi, Bakuriani, Gudauri or other place?

We can say that each direction has its pros and cons. Tbilisi is a year-round in-demand location for tourists and expats and capital of Georgia. Batumi is in super high-demand in summer, but the rest of the year you should count only on expats (whose number seriously grow). Bakuriani and Gudauri are winter resorts, where biggest revenue you get in winter from tourists coming for skiing. However, Gudauri is more expensive in that period of year than Bakuriani, but Bakuriani is in demand in May-Sep periods as well, as many locals are taking their families there for clean and healing air, coming from pine trees.

What ROI will I get from owning a Georgian property?

Georgia is a country with developing economy and high political risks. Economies with similar conditions have high risks, and therefore high potential of returns. High inflow of tourists and war-related migrants are boiling real estate sector. To the latest data the real estate purchase prices in Tbilisi and Batumi increased on average by 30% within a year and the rental prices by 250%. ROIs predictions highly vary, but realistically – 10-13% in Batumi and 8-12% in Tbilisi.

Which district is preferred in Tbilisi?

For lovers of history and those who plan to rent out property to tourists in Tbilisi, we advise the districts of Sololaki, Abanotubani, Vera, Avlabari, Chugureti. Here you can live in an old Georgian house (which is 100-150 years old), walk every morning along the narrow streets, know everyone by sight. This is a special aesthetic, tourists want to feel this artistic atmosphere, but living there permanently, as a rule, gets boring after a while due to poor infrastructure. The most budget-friendly real estate options should be sought in the areas of Gldani, Isani and Samgori. Something in between – in Didube and Sanzona. We recommend to buyers of private villas to take a closer look at the areas of Didi Digomi and Tskneti, Kaklebi.

Can I register Property Ownership remotely?

Property Ownership can be registered remotely, through Power of Attorney

What are the documents required for property ownership registration?

Passport and purchase agreement which can be set up in accordance to the law by our lawyers.

How much is the property transfer tax in Georgia?

There is no property transfer tax in Georgia.

How long does it take to register a property ownership?

Registration of a property in Georgia is one of the fastest processes in the world. Right to ownership can be registered on a same day of application.

What benefits apart from investment returns do I get from owning a property in Georgia?

Owning a property appraised for more than USD100,000.00 is a criteria of getting Georgian residency permit. Appraisal of more than USD300,000.00 grants you 5-years residence permit which eventually becomes permanents residence permit.

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