Arrests and Encumbrances: How to Spot and What a Buyer Should Do—Step by Step

Seizures and encumbrances: why buyers must check 🏠

Buying property is both an emotional and significant financial decision. Encumbrances (mortgages, easements, leases) and seizures (court orders, enforcement actions) can create long‑term headaches: registration delays, creditor claims, or litigation. This guide gives a practical checklist to reduce your risk.

Main risks to keep in mind ⚠️

• Inability to register ownership after closing.
• Claims from creditors or utility providers.
• Hidden leases or third‑party rights that remain after purchase.

Step‑by‑step due diligence ✅

Follow a clear workflow to uncover risks and secure the deal.

1) Ask the seller for original ownership documents and a recent registry extract.

2) Check the national property registry and cadastre for mortgages, liens, seizures, and third‑party rights.

3) Search court registries and enforcement databases for judgments or active enforcement procedures.

4) Verify tax and utility debt records — outstanding bills may follow the property.

5) Ask about informal encumbrances: long‑term tenants, access agreements, or disputes with neighbours.

6) Hire a lawyer to perform legal due diligence and draft protective contract clauses.

What to look for in paperwork — quick checklist 📋

• Title documents and underlying agreements.
• Recent registry extract showing current encumbrances.
• Details on any mortgage: the lender and the lending terms.
• Court rulings, freezes, or enforcement orders affecting the property.
• Usage limitations such as easements or protected zones.

Contract clauses that protect the buyer

• «Sale conditional on removal of all seizures and encumbrances by the seller before transfer.»
• «Escrow of purchase funds until confirmation of clean title.»
• «Price adjustment or penalty if hidden liabilities are discovered post‑closing.»

These clauses reduce risk and incentivize the seller to resolve issues quickly.

If you find an encumbrance before signing 🔍

• Request the seller to remove it or provide written consent from the secured party.
• Renegotiate: price reduction, seller covers removal costs, or new timing for closing.
• Use escrow: funds remain with a neutral third party until the issue is cleared.
• Walk away if the seller refuses — unresolved encumbrances can outweigh potential savings.

If an encumbrance appears after the purchase

• Contact a lawyer and your agency immediately — early action improves outcomes.
• Consider claims for compensation from the seller, registration cancellation, or litigation.
• Gather all documents, communications, and proof of due diligence to support your case.

Practical tips and cautions ✍️

• Always keep written records of checks and requests.
• Avoid relying on verbal guarantees from the seller.
• Use a notary and legal counsel for complex situations.
• Maintain a contingency budget for legal costs or clearing encumbrances.

When to get professional help 📞

If documents raise any doubts, hire a specialized lawyer or get support from an agency experienced in Georgian property law. Professional verification often saves time and money.

Want help with checks or drafting safe contract clauses? Start by searching available properties and request document verification: https://buyhome.ge/en/search

Contact us — we will help you assess risks and secure your purchase with professional care and clear advice.