Mortgage in Georgia: the registered security behind a property loan

Mortgage in Georgian law: a right in the property, not the loan

A mortgage (იპოთეკა) in Georgia is a security right registered on an immovable thing that lets a creditor be paid out of that property, by its sale or by taking it into ownership, ahead of the owner's other creditors.

The legal basis is Article 286(1) of the Civil Code of Georgia, which lets an immovable thing be "encumbered" so that the secured creditor is satisfied "before other creditors through the sale or transfer of the thing into his/her ownership". Article 286(2) allows it to secure a future or contingent claim if that claim can be identified at the outset. Under Article 289(1) the mortgage acquires legal force only on registration in the Public Register.

In everyday English, "getting a mortgage" means borrowing from a bank. Georgian law splits it in two. The loan is a loan contract (Civil Code Article 623 onwards); the mortgage is the encumbrance on the flat that backs it, recorded against the property. A mortgage can therefore secure someone else's debt, a private loan within the limits of Article 286(4) to (6), or a claim not yet due. For the bank loan itself, see our guides to getting a mortgage as a foreigner and mortgage rates.

Georgian banks held a mortgage portfolio of GEL 13.4 billion on 1 January 2026, GEL 9.3 billion of it in lari, according to GBC. The National Agency of Public Registry (NAPR) has kept the register of mortgages and tax liens since 2007.

How a mortgage is created, ranked and priced

Under Article 289(1), either party registers the mortgage by presenting the contract, which must name the owner, the mortgagee and any third-party debtor; amount, interest and term are optional. Where the secured claim comes from a loan, a notary certifies the contract and tells both sides what a breach would mean (Article 289(1-1)). Commercial banks, microbanks, microfinance organisations, credit unions and authorised or registered investment funds are exempt (Article 289(1-3)).

Ranking is by the clock. Article 290: "The order of priority shall be determined by the date of registration of mortgage applications." The filing date counts, not the signing date. One claim may also cover several properties, a blanket mortgage under Article 287, letting the creditor recover from any of them unless agreed otherwise; a developer's project loan can take this form (see our guide to encumbrances on property).

More in our registry fees guide.

The Certificate of Mortgage: a claim that can change hands

The Certificate of Mortgage (იპოთეკის მოწმობა) entered the Civil Code through Law No 5127 of 29 June 2007, as Articles 289-1 to 289-8. If the parties agree, the Public Register issues it at the creditor's request and records the issue (Article 289(2)). The mortgage contract must then be notarised (Article 289(3)). One copy only is made, even for a blanket mortgage (Articles 289(4), 289-1(2)). NAPR charges GEL 75 and takes 3 working days.

Article 289-1(1) calls it "a security": its holder may demand performance and, on default, be paid from the property. It works like negotiable paper:

• Holder: the person holding it is presumed entitled (Article 289-3(1)).
• Payment: made only against presentation; part payments are noted on it (Article 289-3(2) to (3)).
• Notary deposit: paying into the deposit account of the notary who certified the contract releases the debtor (Article 289-3(4)).
• Transfer: by the assignor's notarised signature; a ban on assignment is void (Article 289-4).
• Loss: the Public Register is notified and a court declares it invalid (Article 289-5).
• Pledge and end: it can be pledged (Article 289-6) and is cancelled on payment or return to the owner, with the cancellation registered (Article 289-7).

The sharpest rule is Article 289-8: where the certificate and a register entry differ, the certificate prevails, so an extract alone may mislead. We found no figures on how many NAPR issues each year.

When the debt goes unpaid: four routes to the property

A specialist's sale "shall not constitute enforcement" (Article 302(1-1)) and is barred for a seized property (Article 302(7)). The court route ends in an electronic auction of the National Bureau of Enforcement, described in our guide to buying property at auction.

Borrowers used to lenders chasing a shortfall should note Articles 300(2) and 301(1-1): the claim is deemed satisfied even if the property or proceeds fall short, "unless otherwise determined by law or by agreement of the parties". A bank's loan contract can override this, so read its terms. Where the lender is not supervised by the National Bank of Georgia and the borrower is a natural person, the parties cannot agree otherwise (Articles 300(2-1) and 301(1-2)).

Where you meet the word: extract entry and certificate fields

On an extract, a mortgage sits among the registered burdens under the word იპოთეკა. Order 487 of the Minister of Justice (Article 6(4)) requires rights and obligations to be shown with the basis of registration: typically the mortgagee (often a bank, with its identification code), the application number and date, and the mortgage contract with its date and any notary. We could not confirm the exact 2026 layout; compare yours with our guide to reading a Public Registry extract.

The certificate's contents are fixed by Article 289-2(1):

1. the words "Certificate of Mortgage" in the title;
2. name and address of the mortgagee;
3. name and address of the debtor;
4. name and address of the owner of the property;
5. the registration code (the cadastral code) and the address of the property;
6. details of the certificate's registration with the Public Register;
7. whether the property, or part of it, carries any other mortgage or other real right or obligation;
8. place and date of the mortgage contract;
9. the extent of the secured claim;
10. the due date, or the due dates of each instalment;
11. the date of issue.

The Public Register's seal confirms validity (Article 289-2(2)); a missing item or seal makes it void (Article 289-2(3)).

Worked example: buying a flat that carries two mortgages

An illustration built on the statutory rules, not a real case: a buyer's registry extract for a resale flat shows a bank mortgage registered in 2024 and a private lender's mortgage registered in 2025.

1. Rank. The bank filed first, so it is paid first in a forced sale (Article 290).
2. Form. For a loan to a natural person, a private lender may take a mortgage on a natural person's flat only if the National Bank of Georgia supervises it, or in the narrow case of Article 286(6) (Article 286(4) to (6)). Not being a bank, its mortgage had to be notarised (Article 289(1-1)); the extract should name the notary.
3. Certificate. The buyer asks whether a certificate exists for either mortgage; if so, it must be handed back, since payment is made only against it (Article 289-3(2)).
4. Payoff. The buyer's bank repays loan 1 from the price; the seller clears loan 2 from the balance.
5. Cancellation. Both removals are registered before or with the transfer, each GEL 150 in 4 working days at standard speed.

Step 5 is where deals slip. Under Article 288 an extinguished claim turns the right into an "owner's mortgage" rather than deleting it, so the sale and purchase agreement should say who files each cancellation and by when.

Mortgage, mortgage loan, pledge and tax lien compared

A seizure differs again: it is imposed by a court, an enforcement officer or the tax authority and blocks new registrations, while a mortgage leaves the owner free to sell, since Article 294(4) voids a promise not to sell or encumber unless a law provides otherwise.

The term in five languages

Georgian contracts and extracts use იპოთეკა for the security right and იპოთეკური სესხი for the loan, and the certificate is იპოთეკის მოწმობა. The Civil Code calls the mortgagee იპოთეკარი (Articles 286(3), 289(1), 300); it has no separate word for the mortgagor and speaks of the owner of the mortgaged property, უძრავი ნივთის მესაკუთრე (Articles 289(1), 300(1)).

Misreadings that cost buyers time or money

• Repaid means removed. It does not: the extract shows იპოთეკა until the removal is registered.
• Trusting the extract alone. A Certificate of Mortgage prevails over the register (Article 289-8); ask the seller in writing whether one was issued.
• Ranking by loan size. Rank follows the application date (Article 290), not the amount or contract date.
• An unnotarised private mortgage. A loan mortgage must be notarised unless the lender is on the Article 289(1-3) list (Article 289(1-1)); a home-made paper is a warning sign.

Checking a mortgage on a property step by step

1. Order a fresh extract

   Look for the word იპოთეკა among the burdens.

2. Note each mortgagee and date

   The application date sets the rank.

3. Ask about a certificate

   Get a written answer from the seller.

4. Get payoff letters

   Each creditor states the amount to clear.

5. Fix the cancellation in the contract

   Who files it, and by which date.

6. Check the extract again

   Confirm the entry is gone after registration.

Frequently asked questions

Is a Georgian mortgage the same thing as a home loan?

No. The mortgage is the security registered on the property; the loan is a separate credit contract with the lender.

When does a mortgage take legal effect?

On registration in the Public Register, under Civil Code Article 289(1).

Must a mortgage be signed before a notary?

A mortgage securing a loan must be notarised, except where the creditor is a commercial bank, a microbank, a microfinance organisation, a credit union or an authorised or registered investment fund (Article 289(1-3)).

Can the owner sell a mortgaged flat?

Yes. A promise not to sell is void under Article 294(4), but the mortgage stays on the record until its removal is registered.

How much does it cost to remove a mortgage from the registry?

The registry charges GEL 150 for 4 working days, GEL 270 for next working day or GEL 350 for the same day.

What is a Certificate of Mortgage?

An optional security issued by the Public Register for GEL 75 in 3 working days. It can be transferred, and it prevails over the register if the two differ.

If a flat has two mortgages, which is paid first?

The one whose registration application was filed first (Article 290).

Does a mortgaged flat still count for a residence permit?

Yes, if it is registered in your name and valued at more than USD 150,000.

Sources

1. Civil Code of Georgia (Articles 286 to 290, 294 and 300 to 302), consolidated 25 June 2026, Legislative Herald of Georgia (accessed 28 October 2026)
2. Immovable property registration fees, National Agency of Public Registry (accessed 28 October 2026)
3. History of the agency, National Agency of Public Registry (accessed 28 October 2026)
4. Law of Georgia on the Public Registry (Articles 10 and 20), Legislative Herald of Georgia (accessed 28 October 2026)
5. Government Resolution No 507 on notarial tariffs (Articles 23-1 and 31), Legislative Herald of Georgia, in Georgian (accessed 28 October 2026)
6. Law of Georgia on Enforcement Proceedings, Legislative Herald of Georgia (accessed 28 October 2026)
7. Tax Code of Georgia (Article 239), Legislative Herald of Georgia (accessed 28 October 2026)
8. Mortgage issuances to non-residents have increased, GBC, 6 February 2026

Change log

• 28 October 2026 - Glossary entry published from the Civil Code of Georgia, the Law on the Public Registry, the Law on Enforcement Proceedings, the Tax Code, Government Resolution No 507, the National Agency of Public Registry and GBC.