Selling an Apartment with a Child's Share: Court Consent: what to do under Georgian law

What to do

1. Qualification: disposing of a child's real estate by a parent or legal representative is permitted only in the child's interests and with the consent of the court (CC, Art. 183); the same applies to a child's movable property worth more than 1,000 lari (for example, a car) (CC, Art. 186). Any disposal counts: sale, exchange, gift, pledge or mortgage of a share. Parents manage their children's property as their representatives (CC, Art. 1198), but without court consent a notary and the registry will not register the transaction, and a transaction made in violation of the law is void (CC, Art. 54).
2. What must be proven to the court: disposing of a child's property is permitted only in his or her best interests (Code on the Rights of the Child, Art. 19). In return, the child receives an equivalent or better share or housing (a reciprocal purchase in the child's name, ideally at the same time), or the money is used for the child's treatment or education. “The family needs money” or the parents' debts are grounds for refusal.
3. Who files: parents decide matters concerning their children by mutual agreement (CC, Art. 1200), so the claim is filed to the court by both; if they disagree, the court decides, and a separate representative is appointed for the child (CC, Art. 1200). The child is heard on matters affecting his or her rights (Code on the Rights of the Child, Art. 8), so attach the child's position.
4. Guardian (not a parent): a guardian needs the prior consent of the guardianship authority (CC, Art. 1294) to alienate property, pledge it, or lease it for more than ten years (and for loans and partition) (CC, Art. 1294); making a gift on behalf of a ward is prohibited (CC, Art. 1296); the guardian and his or her relatives may not enter into transactions with the ward (CC, Art. 1297).
5. Refusal by the court: an appeal against a refusal must be filed within 14 days of service of the reasoned decision; the time limit cannot be restored (CPC, Art. 369).
6. Where to apply: district (city) court; then a notary and the Public Registry; for a guardian, the guardianship authority (Social Service Agency).
7. Evidence: registry extract; inheritance certificate; birth certificate; preliminary sale and purchase agreements for new housing in the child's name; valuation; treatment or education certificates.
8. Traps: a sale “by power of attorney” or a fictitious gift without a court decision is void; asking for consent without a plan to buy housing for the child will be refused; the consent of both parents before a notary does not replace the court.

Be sure to check

• disposal of a child's real estate (sale, exchange, pledge) requires prior court consent; movable property worth more than 1,000 lari
• the criterion is the child's best interests: prove a reciprocal acquisition of housing or a share in the child's name, or targeted use of the money
• both legal representatives file; if the parents disagree, the court decides, with a separate representative for the child
• a transaction without court consent is void; the appeal against a refusal must be filed within 14 days