STANDARDIZED PROPERTY
Property value: 133,898
City: Tbilisi

Registration Requirements:

 
Procedure 1*. Obtain a Non-Encumbrance Certificate, an extract, and a cadastral sketch of the parcel, confirming current status of the property, from the National Agency of Public Registry
Time to complete: 1 day 
Cost to complete: GEL 7 (Extract) + GEL 1 (Cadastral sketch) + GEL 2.40 (Non-Encumbrance)
Comment: The seller obtains the excerpt and the cadastral sketch from the respective division of National Agency of Public Registry, responsible for the geographical area of property's location.
The excerpt remains valid within 1 month following the date of issuance.
The seller also obtains the Non-Encumbrance Certificate, which evidences absence of any liens over the property. Previously the certificate was obtained from the Chamber of Notaries. However, this function has been transferred to the National Agency of Public Registry. The certificate remains valid within 5 days following the date of issuance.
 
Procedure 2*. Obtain Entrepreneurial Registry Excerpt from District Court of seller's/purchaser's registration.
Time to complete: 2-5 days 
Cost to complete: N/A
Comment: Both parties obtain the Entrepreneurial Registry Excerpt, confirming current status of the company, and identity of the registered director which will be executing the sales and purchase agreement on behalf of the seller/purchaser.
The maximum time established for this procedure is 5 days.
 
Procedure 3*. Notarize copies of the company Charter and Entrepreneurial Registry Excerpt.
Time to complete: 1 day
Cost to complete: GEL 7.68
Comment: Both parties must produce notarized copies of the company Charter.
The purchaser will need two copies (for notarization and registration purposes), while the seller will only require one (for notarization).
The purchaser will in addition need to produce a notarized copy of the Entrepreneurial Registry Excerpt for Public Registry registration purposes.
Notary fee is chargeable at the rate of GEL 0.24 per certified page.
The above figure of GEL 7.68 is provided on the basis of an assumption of a 10 page Charter in both cases, and a 2 page Entrepreneurial Registry Excerpt.
 
Procedure 4. Preparation and notarization of the sale-purchase agreement
Time to complete: 2 days
Cost to complete: Notary fees according to table below, and subject to 18% VAT 
Comment: The notary public will prepare the sale purchase agreement.
It will take 1 day if the standard notary version of the agreement is used, however, at the request of either or both parties the agreement may be prepared by a lawyer, and if negotiations are involved it may take several months.
Any authorized public notary will notarize the sale purchase agreement (1 day)

The notary's fees depend on the value of the property according to the following table established by Article 22 of the Law on Notary Fees:
Value of Property Notary's Fees
Up to GEL 500 3%
from GEL 501 to 1,000 15 GEL+ 2.5% of the amount over 500 GEL
from GEL 1,001 to 2,000 27.5 GEL+1.5% of the amount over 1,000 GEL
from GEL 2,001 to 3,000 42.5 GEL+1% of the amount over 2,000 GEL
from GEL 3,001 to 5,000 52.5 GEL+0.5% of the amount over 3,000 GEL
from GEL 5,001 to 20,000 62.5 GEL+0.4% of the amount over 5,000 GEL
from GEL 20,001 to 100,000 122.5 GEL+0.3% of the amount over 20,000 GEL
from GEL 100,001 to 500,000 365.5 GEL+0.2% of the amount over 100,000 GEL
from GEL 500,001 to 1,000,000 1,162.5 GEL+0.1% of the amount over 500,000 GEL
over GEL 1,000,000 1,662.5GEL+0.05% of the amount over 1,000,000 GEL

The notary fee may under no event be in excess of GEL 10,000. In addition, VAT in the amount of 18% of the notary fee is also payable.

The documentation shall include:
All documents listed under Procedures (1) - (3) above, plus any agreement according to which the title to the property was acquired by the seller (all such agreements must be listed in the excerpt from Public Registry) must be presented to the notary.
Procedure 5. Payment of the Registration fee at a commercial bank
Time to complete: 1 day
Cost to complete: GEL 23 (for excerpt and cadastral sketch) + GEL 36 (Registration fee, 5 business days) or GEL 108 (3 business days) or GEL 150 (1 business day)
Comment: Payment of the registration fee at a commercial bank indicated by the Registry
The registration fee is transferred to the specifically designated account of the Public Registry and a receipt is presented upon filing of all other documentation. Theoretically, it should be possible to transfer the amount from any commercial bank, although, practically, it may be associated with
certain problems. It is therefore advisable to make the payment through the specific commercial bank, indicated by the Public Registry.

The 2% Immovable Property Transfer Tax has been abolished with the introduction of the new Land Code of Georgia. It has been replaced by the "Income Tax" for physical persons, and the "Profit Tax" for legal entities. These are capital gains taxes. For persons, the income tax is 12% of the difference between the sell and purchase price; for enterprises, the profit tax is 20% of the income gained from the sale of the property.
 
Procedure 6. Register the purchaser's title with the district Public Registry of property's locations and registration
Time to complete: 1, 3 or 5 business days (according to fees paid in Procedure 5)
Cost to complete: Already paid in Procedure 5
Comment: The purchaser must apply for registration no later than 30 days following the execution date.
The Public Registry may take up to 5 business days following the date of filing to conduct registration and issue an Ownership Certificate. The option for an expedited procedure has been introduced in January of 2005, after the law "On Fees Established for Services Carried out by the National Agency of Public Register" was passed by the Parliament.

The registration fees are different for agricultural land:
Within 5 business days- GEL 7 (normal/mandatory registration)
Within 3 business days - GEL 21
Within 1 business day - GEL 35

Property transfers were subject to a 20% VAT until July 2005. Then, it was cut to 18%. The transfer of land without buildings is not subject to VAT.

The documentation shall include:
(i) Application, signed by the director of the purchaser;
(ii) Notarized copies of purchaser's Charter and of a valid Entrepreneurial Registry Excerpt;
(iii) Notarized Sale and Purchase Agreement;
(iv) Receipt confirming payment of the IPTT;
(v) Receipt confirming payment of Public Registry registration fee. 
 
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).