Mortgage in Georgia — contract, registration, enforcement
A mortgage is a debt secured by property — a bank loan, a private loan or girao. We check the contract before you sign, defend owners when a bank or private lender tries to auction a home, and act for creditors who aren't being repaid.
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A mortgage exists only once registered in the Public Registry. A mortgage securing a private loan must be notarised — this doesn't apply to banks, microbanks, microfinance organisations or credit unions (Civil Code, Article 289). With several mortgages, the one registered first has priority.
Only a lender supervised or registered by the National Bank may secure a loan to an individual with real estate — the exception is girao, where the flat is handed to the lender to live in (Article 286). The effective annual interest rate on a loan must not exceed 50% (Article 625).
What we check
- Whether the lender was allowed to make a loan secured by real estate
- Whether the contract was notarised where that is mandatory
- Interest, penalties and fees — within the legal limits
- Which property is mortgaged and to whom — it can be a third party's property
- The enforcement procedure and the chance to stop an auction or negotiate
For foreigners, each bank sets its own mortgage lending conditions. We check the contract and the property before you sign.
Our services
- Reviewing the mortgage contract before signing
- Registering and removing a mortgage
- Checking whether a private lender's contract is lawful
- Challenging an auction or enforcement
- Negotiating restructuring with a bank
- Representing creditors in debt recovery
Questions & answers
Can I borrow from a private person against my flat?
As an individual, generally not — only a supervised or registered lender can make loans secured by real estate. Girao is the exception.
Can the flat pass to the creditor automatically?
No. Ownership passes only on a joint application by owner and creditor; otherwise the money is recovered through enforcement.
My loan has very high interest — what can I do?
The effective annual rate must not exceed 50%, and the law caps penalties and charges. You can refuse to pay the excess — we'll check the contract.
Legal basis
Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge.
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