# 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. - Confidential - Georgian · English · Russian - Free first consultation - Courts of all instances 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 - [Civil Code of Georgia](https://matsne.gov.ge/ka/document/view/31702) - [Law on the Public Registry](https://matsne.gov.ge/ka/document/view/20560) - [Law on Enforcement Proceedings](https://matsne.gov.ge/ka/document/view/18442) Official texts (in Georgian) — Legislative Herald of Georgia, matsne.gov.ge. ## Related topics - [#Property](https://mmlaw.ge/en/real-estate-lawyer/) - [#Court cases](https://mmlaw.ge/en/civil-litigation-lawyer/) - - [Civil litigation lawyer](https://mmlaw.ge/en/civil-litigation-lawyer/) - - [Debt recovery](https://mmlaw.ge/en/debt-recovery-georgia/) - - [Real estate lawyer](https://mmlaw.ge/en/real-estate-lawyer/) - - [Buying an apartment in Georgia: what to check](https://mmlaw.ge/en/blog/buying-an-apartment-checklist/) - - [Disputes with developers · For foreigners](https://mmlaw.ge/en/foreigners/disputes-with-developers/) - - [Dividing marital property in a Georgian divorce](https://mmlaw.ge/en/marital-property-division/) - - [Gambling debts](https://mmlaw.ge/en/gambling-debts-georgia/) - - [Living in a flat for a lump sum (girao)](https://mmlaw.ge/en/girao-apartment-lump-sum-georgia/) Practice areas ## Other practice areas - [Criminal defense](https://mmlaw.ge/en/criminal-defense-lawyer/) — Defense at every stage — from investigation and arrest to trial and appeal. - [Drug offences](https://mmlaw.ge/en/drug-crime-lawyer/) — Defence in cases of buying, possessing, selling and importing drugs — and against fines and administrative detention. - [Cybercrime](https://mmlaw.ge/en/cybercrime-lawyer/) — Defense in cybercrime cases and help for victims of online fraud, hacked accounts and blackmail. - [Property crimes](https://mmlaw.ge/en/property-crime-lawyer/) — Defence in theft, robbery, fraud, extortion, embezzlement and misappropriation cases. - [Economic crimes](https://mmlaw.ge/en/economic-crime-lawyer/) — Defence against tax evasion, money laundering, customs and other economic charges. - [Corruption and official crimes](https://mmlaw.ge/en/corruption-crime-lawyer/) — Defence in bribery, trading in influence and abuse of official power cases. - [Violent crimes](https://mmlaw.ge/en/violent-crime-lawyer/) — Defence in assault, bodily injury, threats and homicide cases — including self-defence. - [Juvenile justice](https://mmlaw.ge/en/juvenile-justice-lawyer/) — Specialised representation of minors, focused on their rights and future. - [Civil litigation](https://mmlaw.ge/en/civil-litigation-lawyer/) — Contract, property and damages disputes — negotiated or argued in court. - [Administrative law](https://mmlaw.ge/en/administrative-law-lawyer/) — Challenging decisions of public bodies, fines, permits and licences. - [Labor disputes](https://mmlaw.ge/en/employment-lawyer/) — Unlawful dismissal, unpaid wages and employment contracts — for employees and employers. - [Corporate law](https://mmlaw.ge/en/corporate-lawyer/) — Company formation, contracts, compliance and shareholder matters. - [Real estate](https://mmlaw.ge/en/real-estate-lawyer/) — Due diligence, purchase agreements, registration and property disputes. - [Family law](https://mmlaw.ge/en/family-lawyer/) — Divorce, custody, alimony and division of property — handled with discretion. - [Inheritance](https://mmlaw.ge/en/inheritance-lawyer/) — Accepting an inheritance, the certificate of inheritance, wills and disputes between heirs. - [Intellectual property](https://mmlaw.ge/en/intellectual-property-lawyer/) — Trademarks, copyright and protection of your creative and business assets. --- Source: https://mmlaw.ge/en/mortgage-georgia/ · MMLAW · +995 551 00 43 00 · info@mmlaw.ge