Keys handed over but ownership not registered: what to do under Georgian law

What to do

1. Diagnosis from the registry extract for the plot or building: ownership of an apartment arises only from a written transaction plus registration. Keys and an act of handover do not confer it (Civil Code, Art. 208). What prevents registration: registration is possible even in a building under construction (on the basis of the title-establishing document and the construction documentation), and after completion, on the basis of the act of acceptance for commissioning (Law on Public Registry, Art. 15⁶). Without these, or without legalisation, the apartment is not registered (Law on Public Registry, Art. 15⁶). An apartment may be alienated only after it has been registered as a separate object (Law on Public Registry, Art. 15⁶).
2. If the building has not been accepted for commissioning: commissioning is requested by the holder of the building permit (the developer), within 10 working days (Code of Spatial Planning, Architectural and Construction Activities, Art. 120). The developer must file the application, and the buyer should demand it. A building not accepted for commissioning is not supplied with electricity or gas (except for construction) (Code of Spatial Planning, Architectural and Construction Activities, Art. 139¹). A complaint goes to supervision, that is, the municipal authority (Code of Spatial Planning, Architectural and Construction Activities, Art. 118).
3. Claim against the developer: the seller must transfer ownership and the documents (Civil Code, Art. 477) within the agreed period (Civil Code, Art. 361). A written demand with a deadline is followed by a claim to compel transfer of title (a court judgment is the basis for registration), plus damages caused by the delay, which are recoverable (Civil Code, Art. 404). The limitation period for contractual claims relating to immovable property is 6 years (Civil Code, Art. 129).
4. Protection during the dispute: preliminary registration blocks other rights arising from transactions (Law on Public Registry, Art. 12). The court may prohibit the developer from alienating the apartment (Civil Procedure Code, Art. 198). A refusal by the Registry may be appealed within 30 calendar days (Law on Public Registry, Art. 29).
5. Where to apply: the developer; the municipal supervisory authority; the Public Registry; the district (city) court.
6. Evidence: the contract, the act of handover, payments, the registry extract for the plot and building (bank mortgage), the building permit.
7. Pitfalls: considering yourself the owner on the strength of the keys and an act; paying the remaining price before registration without preliminary registration; not checking the bank's mortgage on the plot and building; a building constructed with deviations from the permit must first be legalised, and only then registered.

Be sure to check

• ownership only with registration; keys and an act do not confer title
• conditions for registering the apartment (construction documentation, commissioning, unit allocation) and the developer's duty to apply for commissioning
• claim and suit to compel transfer of title, damages, limitation
• protection during the dispute (preliminary registration, prohibition on alienation) and appeal of the Registry's refusal