Where does fraud fit into Georgia's property system?
Georgia's property system is built to protect the person who relies on the register. Under Article 5 of the Law on the Public Registry, registered data count as accurate until a declaration of invalidity, and the Civil Code treats the person registered as owner as the owner in favour of a buyer, unless the buyer knew otherwise (Article 185); register entries are presumed accurate and complete in favour of a good-faith acquirer (Article 312). For an honest buyer who reads the register, this is strong protection.
The same system has a gap that every property fraud uses: the registry registers what it receives and does not vouch for the authenticity of the documents it is given (Article 3(6) of the law). The register is reliable about what it says; it cannot stop someone from presenting a forged passport, a false power of attorney or a promise that nothing on paper supports. Most schemes therefore work in one of two places: before anything reaches the registry, where a buyer pays on trust, or outside the registry altogether, where money moves without a matching right. This guide describes the common schemes in those two places and the check that stops each one.
Ten schemes, and the check that stops each one
| Scheme | How it works | The check that stops it |
|---|---|---|
| Fake listing | An attractive flat at a low price, a request for a deposit to "hold" it | No payment before the cadastral code and a fresh extract naming the seller |
| Impostor seller | Someone poses as the owner with forged identity documents | Meet the owner; compare the passport with the extract; use a notary who identifies both sides |
| False power of attorney | A "representative" sells under an invented or revoked authority | Ask the notary who certified the power to confirm it; check its date, scope and that it was not revoked |
| Double sale | The same flat is promised or sold to two buyers | File the registration application the day you sign; priority follows the time of filing |
| Hidden burden | A mortgage, seizure or tax lien is not mentioned | Read every encumbrance on the extract on the day of signing |
| Payment redirection | New bank details arrive by e-mail just before the transfer | Confirm the account by phone with someone you have met; pay a test amount |
| Money to an intermediary | The price is paid to an agent or relative who disappears | Pay only the registered owner's own account, by bank |
| Project without a valid permit | Units are sold in a building that is not permitted, or whose construction is suspended | Check the construction permit and the city's records of suspended sites |
| Land pledged by the developer | The developer's land carries a mortgage that outranks buyers | Read the extract of the land plot, not only the flat |
| Promised returns | "Guaranteed" rent, buy-back or residence offered as part of a sale | Read who is bound by the promise in writing and what secures it |
Notice how few different checks there are. A fresh extract, a meeting with the real owner, a notary who identifies the parties, a bank transfer to the owner's account, and a registration filed at once stop nine of the ten. The tenth, promised returns, is stopped by reading the contract instead of the brochure.
The anti-fraud routine, step by step
Get the cadastral code before you get attached
Without it nothing can be checked. A seller who will not give it until money is paid is the first warning.
Read the extract, and read it again
Once to decide whether to continue, and once more on the day of signing, because something can be registered in between.
Meet the owner, or verify the representative
Compare the owner's passport with the extract. If someone acts for the owner, check the power of attorney with the notary who certified it.
Use your own lawyer and, where useful, a notary
Your lawyer works for you, not for the seller or the agent. A notary identifies the parties and certifies the deal.
Pay the owner, by bank, tied to registration
No cash, no intermediaries, no payment before the paper is right; confirm account details by phone.
File the registration the same day
The time of the application decides priority between competing claims.
Check the new extract
Your name, the right property, and no burden you did not agree to.
How do impostor sellers and false powers of attorney work?
These two schemes rely on the gap described above: the registry receives documents, it does not investigate them. An impostor presents a passport in the owner's name and asks for a quick sale; a false representative presents a power of attorney that was never given, was given for something else or was revoked. Both prefer buyers who are in a hurry, who are abroad, or who are told that the owner "travels a lot".
The defences are personal, not technical. Speak to the owner directly, by video if not in person, and compare what you see with the passport and the extract. For a power of attorney, ask the notary who certified it to confirm that it exists and is current. Under the Civil Code, a revocation must be notified to third parties to bind them, and authority ends on revocation, expiry or the death of the person who gave it; asking the notary is the quickest way to learn whether any of that has happened. A Georgian notary who certifies the sale also identifies the parties as part of the work, which is one reason a deal under a foreign power of attorney now goes through a Georgian notary, according to Revera Legal.
What should an off-plan buyer watch for?
Off-plan purchases carry a risk that is not fraud in itself: the developer may fail to finish. Some schemes use that uncertainty. A project is sold without a valid permit, or with a permit for a smaller building than the one advertised; or the developer has pledged the land to a lender whose claim ranks ahead of buyers. Three checks cover most of this. Ask for the construction permit and compare it with what is being sold. Read the extract of the land plot, not only the brochure, for mortgages. And check the city's records: Tbilisi City Hall has published an interactive map, based on municipal inspection data, that shows buildings approved for use and construction sites where work has been suspended. Then protect your own claim by having the developer register your preliminary ownership right, and pay against verified stages. Our guide to checking a developer sets out the twenty questions to ask.
What about promised returns, buy-backs and residency offers?
Some sales come wrapped in promises: a "guaranteed" rental income for several years, a buy-back at a higher price, or a residence permit "included". A promise is only as good as the person bound by it and what secures it. Ask who signs the promise, whether it is in the sale contract or a separate document, what happens if that company stops paying, and whether anything, such as a bank guarantee or a registered right, stands behind it. A residence permit is never part of a sale: it is decided by the Public Service Development Agency on the owner's application, and only if the market value set by an accredited assessor exceeds $150,000.
Be cautious, too, with investment offers that arrive by phone or social media and mention Georgian property. In March 2025 OCCRP reported that Georgia's Prosecutor's Office had frozen assets of key figures in a large call-centre fraud case, including apartments in and around Tbilisi, two of which had reportedly been sold shortly before and were still frozen. The case is a reminder that property can carry restrictions linked to its owner's affairs, and that a seizure registered against a flat appears on the extract.
What should you do if you suspect fraud?
Stop paying and act quickly. If money has just left your account, ask your bank to try to recall the transfer. Report the matter to the police, and keep every document, message and bank confirmation. If a registration application is pending, ask your lawyer at once how to raise the matter with the registry; the law allows registration to be suspended on grounds that include a court order, and an applicant can ask to terminate an application they filed. Speed matters more than anything else in the first days.
Risks and exceptions
- Trusting a document because it looks official. The registry does not verify authenticity; you and your lawyer do.
- Buying through someone else's contacts only. An agent introduced by the seller works for the seller.
- Paying to "reserve" before checks. A frequent entry point for the schemes on this list.
- Relying on promises outside the contract. What is not written in a signed document is hard to enforce.
Frequently asked questions
Is buying property in Georgia safe?
For a buyer who reads the register, uses an own lawyer and pays through banks against registration, the system offers strong protection. Most losses come from skipping those steps.
If I buy in good faith from the registered owner, am I protected?
The Civil Code protects a buyer who relies on the register in good faith. That protection is the reason to read the extract and to keep evidence that you did.
Can the registry tell me if a document is forged?
No. It registers documents and does not answer for their authenticity. Identification and checks happen before filing, by you, your lawyer and the notary.
Are agents in Georgia licensed?
We do not cite a licensing rule for agents here. Judge an agent by what they show you, not by what they say, and never pay them the price of a property.
Should I avoid off-plan purchases?
Not necessarily. Choose the developer carefully, check the permit and the land, register your preliminary right and pay against verified stages.
Who do I contact if I was defrauded?
Your bank first, to try to stop or recall the payment, then the police, and a lawyer to act on any pending registration.
For an independent check of a specific property and seller, see our legal due diligence service; the payment side is covered in safe payment.
Sources
- Law of Georgia on the Public Registry (Articles 3, 5, 13, 21 and 22), consolidated 1 April 2026, Legislative Herald of Georgia (accessed 12 October 2026)
- Civil Code of Georgia (Articles 108, 109, 185 and 312), consolidated 25 June 2026, Legislative Herald of Georgia (accessed 12 October 2026)
- Tbilisi launches map to verify construction project status, Georgia Today, 27 November 2025 (accessed 12 October 2026)
- Georgia freezes assets of top scammers in massive call center fraud, OCCRP, 13 March 2025 (accessed 12 October 2026)
- New notary requirements for transactions subject to public registration in Georgia, Revera Legal (accessed 12 October 2026)
- Law of Georgia on the Legal Status of Aliens and Stateless Persons (Article 15(j)), consolidated 25 June 2026, Legislative Herald of Georgia (accessed 12 October 2026)
Change log
- - Guide published from the Law on the Public Registry, the Civil Code, Tbilisi City Hall's construction map and OCCRP reporting; being reviewed by the partner lawyer.