What makes a payment safe?
A property payment is safe when two things happen together: your money reaches the person who is legally bound to transfer the property, and the property is registered to you. Every way of paying is an attempt to bring those two moments as close as possible. In Georgia, ownership passes when the Public Registry registers the transfer on the basis of the written contract, so the registration is the moment your money has to be tied to. Paid too early, the money is exposed to a seller who does not register; paid too late, the seller is exposed to a buyer who does not pay.
This guide compares the ways of bridging that gap: a bank transfer timed against registration, a bank escrow, a notary's deposit account, and stage payments to a developer. It then sets out the checks that apply to any of them, from the name on the receiving account to clearing a seller's mortgage at the same moment. Cash is not on the list.
Which ways of paying are available?
| Method | How it works | Protection | Points to check |
|---|---|---|---|
| Bank transfer timed against registration | You pay the seller's account when the registration application is filed, or as the contract sets out | Depends on the timing and on the contract's terms | The account is in the seller's own name; the contract says what happens if registration is refused |
| Bank escrow | The bank holds the money and releases it when the agreed conditions are met | The money stays with the bank until the conditions are fulfilled | The release conditions, written so the bank can verify them; the fee |
| Notary's deposit account | Money is paid into a notary's deposit account, which the notary transfers to the creditor | Notaries' deposit accounts are nominal accounts, protected if the notary's own account is seized | Whether the notary offers it for your transaction, and on what terms |
| Stage payments to a developer | You pay in instalments during construction | Depends on the contract, the developer and a registered preliminary right | Payments tied to verifiable stages; the developer company is the recipient |
| Registry Smart Contract escrow | The registry's own escrow for its online contract, GEL 35 | Built into the registry's process | Open only to Georgian citizens holding a Georgian ID card or passport |
How does a bank escrow work?
An escrow is a three-party arrangement: buyer, seller and bank. You pay the price into an account the bank controls; the bank releases it to the seller when the conditions in the escrow agreement are met, for example when the extract shows you as the registered owner. If the conditions are not met, the agreement says whether and when the money returns to you. The bank's role is to check the conditions, not to judge the deal, so the conditions have to be written in a way the bank can verify from documents.
Terms differ from bank to bank. As one published example, Terabank describes its escrow as a service to insure the risk of payment and transfer of ownership, holding the money until the parties' obligations are fulfilled, available to individuals and companies, residents and non-residents, for a fee of 0.2% with a minimum of GEL 100. On a $100,000 purchase, 0.2% is $200. Ask the bank you plan to use for its own conditions and fee in writing.
How does a notary's deposit account work?
The Civil Code has a mechanism for money that cannot be handed over directly. Under Article 434, if a creditor delays accepting performance or cannot be found, the debtor may deposit money or securities into a notary's deposit account and is then released from the obligation; under Article 435 the notary transfers the deposit to the creditor, and under Article 440 the debtor may take it back before the creditor accepts it. The Notary Chamber of Georgia explains that notaries' deposit accounts are opened as nominal accounts at banks, so that a seizure of the notary's own account does not touch the client's money, and that a transfer to the notary has the same legal consequences as a transfer to a court.
In practice this means a notary can be part of the payment, not only of the signature. Whether a particular notary will hold the price for your transaction until registration, and how the release is documented, is a question to ask the notary before you sign. A remote purchase already involves a Georgian notary, which makes this option practical to discuss.
How should stage payments to a developer be structured?
Paying a developer in instalments is normal, but each instalment is a payment for something not yet delivered. Three rules keep the exposure under control. Pay the developer company named in the construction permit and in the contract, into its own account. Tie each payment to a construction stage that can be checked, such as the frame completed or the roof closed, rather than to calendar dates alone. And have the developer register your preliminary ownership right, which the Public Registry records for its standard fee within four working days, so that your claim on the unit is public. Our guide to checking a developer explains how to verify the stages and the project.
The payment, step by step
Agree the method in the contract
The contract names the method, the account, the amount, the moment of payment and what happens if registration fails.
Check the receiving account
The account holder must be the registered owner or the developer company. Confirm the details by a second channel, such as a call, not only by e-mail.
Prepare the source of funds
Banks and notaries are obliged to identify clients and may ask where the money comes from. Have the documents ready.
Clear any mortgage at the same moment
If the extract shows a mortgage, the payment route must pay off the lender so that the burden is removed when the property becomes yours.
Pay with a clear reference
The reference names the property and the contract, so the payment is tied to the purchase.
Keep the evidence
The bank confirmation, the contract and the updated extract together are your proof of payment and ownership, and later the basis of any tax calculation on a sale.
Dollars or lari?
Apartment prices in Georgia are usually quoted in US dollars. The Civil Code expresses monetary obligations in lari but allows the parties to set them in a foreign currency unless the law prohibits it, so a price in dollars can be written into the contract. Write the currency once, clearly, and if any payment is made in a different currency, state the exchange rule. Ask your bank in advance about limits and fees for an international transfer, and about how long it holds a large incoming or outgoing payment for checks.
What if something goes wrong after you pay?
Act in the order the documents allow. If the money went into escrow or a notary's deposit account and the conditions have not been met, the agreement with the bank or the notary decides whether it comes back to you; ask for that clause before you pay, so that you know the answer in advance. If you paid the seller directly and the registration did not happen, the contract is your tool: under Article 405 of the Civil Code you can set the seller an additional period to perform and, if it passes, end the contract, and under Article 352 what was received is then returned.
If the money went to the wrong account, for example after a fraudulent change of bank details, contact your bank at once and ask it to try to recall the payment, then report it to the police. Speed matters more than anything else in that situation, which is why the confirmation call before the transfer is worth more than any remedy after it.
Risks and exceptions
- Paying an intermediary. Money that does not reach the owner does not bind the owner.
- Paying before the paper is right. A transfer before the extract has been read and the contract signed is the most common way to lose money.
- A mortgage left in place. Without a payment route that clears it, you can become the owner of a mortgaged flat.
- Stage payments ahead of construction. Pay for stages that are built and documented.
- Cash. It leaves no trail, and the bank cannot ask the questions that protect you.
Frequently asked questions
Do I need a Georgian bank account to pay?
Not for ownership. A transfer from your bank abroad can be enough; a Georgian account helps with later payments such as utilities.
Can I use the registry's Smart Contract escrow?
Only Georgian citizens with a Georgian ID card or passport can use the Smart Contract service. Foreign buyers use a bank, a notary or a timed transfer.
Who pays the escrow fee?
Whoever the parties agree. Write it into the contract along with the other costs.
Is paying a developer before completion ever safe?
It is a calculated risk. A strong developer, payments tied to verifiable stages and a registered preliminary right reduce it; nothing removes it.
What if the registry refuses the registration after I paid?
That is why the contract should say what happens in that case. With escrow or a notary's deposit, the money has not yet reached the seller; with a direct transfer, you rely on the contract.
Can I pay part in cash to lower the declared price?
No. Declare the real price and pay it through banks. A lower declared price also misstates the cost that later tax calculations depend on.
The documents that come before the payment are covered in reservations and deposits and the preliminary agreement; tax on the money side is in our guide to money and taxes.
Sources
- Civil Code of Georgia (Articles 183, 383 and 434 to 440), consolidated 25 June 2026, Legislative Herald of Georgia (accessed 12 October 2026)
- Notary's deposit account becomes more protected, Notary Chamber of Georgia (accessed 12 October 2026)
- Escrow service, Terabank (accessed 12 October 2026)
- Smart Contract: frequently asked questions, National Agency of Public Registry (accessed 11 October 2026)
- Immovable property registration: fees and terms, National Agency of Public Registry (accessed 11 October 2026)
- Law of Georgia on Facilitating the Prevention of Money Laundering and the Financing of Terrorism, consolidated 1 April 2026, Legislative Herald of Georgia (accessed 11 October 2026)
Change log
- - Guide published from the Civil Code, the Notary Chamber, a bank's escrow terms and the registry; being reviewed by the partner lawyer.