Buying a Tenanted Apartment in Georgia: What to Agree Before Payment

A tenanted apartment can suit a buyer who wants to retain a long-term rental. If you intend to move in immediately, the same property requires a different transaction plan. The main risk is paying before agreeing who remains in occupation, how prepaid rent is treated and who is responsible for the deposit.

Before transferring money, connect three matters: the property purchase, the existing tenancy and actual possession of the apartment. The seller's statement that the tenant knows about the sale is not enough.

⚖️ A sale does not automatically end the tenancy

Article 572 of Georgia's Civil Code provides for the buyer to succeed to the landlord's tenancy rights and duties when property is sold after possession has passed to the tenant. Ownership change should therefore not be equated with automatic vacancy.

Before the transaction, a lawyer should compare the agreement, actual circumstances and proposed purchase arrangements. Do not assume obligations disappear because a document is absent from a registry extract or differs from the template you normally use.

Start with your objective: retain the tenancy or receive a vacant apartment. Establish that before discussing the date of full payment.

Two objectives require different arrangements

Issue	Retaining the tenancy	Requiring a vacant apartment
Occupation after sale	Continuation on verified terms	Confirmed lawful conclusion and handover
Money	Reconcile rent, prepayments and deposit	Final reconciliation before vacancy
Inspection	Respect the occupant's rights	Repeat inspection after vacancy
Documents	Complete records and appropriate notice	Documents concluding the arrangement and recording handover
Main risk	Unknown commitments and payments	Promised vacancy that does not occur

This is a preparation framework, not a ready-made agreement. The legal mechanism and payment sequence should fit the actual documents.

Request the complete tenancy file

Ask for the agreement, annexes, amendments, original handover record and inventory. Establish whether separate arrangements cover repairs, furniture replacement, bills or deductions from rent for expenses.

Check:

• the contracting parties and the seller's connection to the landlord;
• the exact property, included contents and actual occupants;
• duration, renewal arrangements and agreed termination provisions;
• payment amount, currency, dates and method;
• the security deposit and grounds for deductions;
• rent paid for future periods;
• maintenance and repair responsibilities;
• agreed changes and unresolved claims.

Do not collect unnecessary personal documents from the tenant just in case. Share information needed for the transaction through an agreed channel with the relevant participants only.

If no written copy is available, investigate the circumstances with a lawyer. Its absence is not a reason to treat the occupant as having no rights or obligations.

Compare the agreement with actual payments

The written payment and actual performance may differ because of an agreed discount, repairs or advance payment. Request payment evidence and a reconciliation for the current period. For cash payments, establish which acknowledgements exist.

Keep separate entries for amounts due, amounts paid, the period covered, recipient and date. Do not combine rent arrears, utility bills and the deposit into one unexplained balance.

If there are arrears, determine who is entitled to claim them and how they are addressed in the sale. Do not assume all historical debt becomes your future income. Equally, do not overlook money already received by the seller for occupation after your purchase.

Where seller and tenant disagree, an oral account from one side should not settle the issue. Identify the discrepancy and obtain a legally clear resolution first.

💰 The deposit involves both money and responsibility

Establish the original deposit, evidence of receipt, subsequent changes and any agreed deductions. Then record who will be responsible to the tenant and how the money is transferred or accounted for between seller and buyer.

The mechanism must be agreed: a separate transfer, documented adjustment or another suitable arrangement. “Deposit included in the price” without an amount or confirmation can leave each participant with a different understanding.

A three-party reconciliation should make clear:

1. The amount recognised as the deposit on the chosen date.
2. Whether deductions have occurred and on what basis.
3. How the money is transferred or accounted for in the purchase.
4. Who performs the corresponding obligations after ownership changes.
5. How the agreed outcome is evidenced.

The seller returning money to the tenant does not by itself establish that the tenancy has ended. Do not combine those events without checking the documents.

Allocate prepaid and current-period rent clearly

Agree the reconciliation date and allocation of receipts. Signing, registration, key handover and the start of your dealings with the tenant may occur at different times. Describe the sequence without ambiguity.

Consider a hypothetical teaching example. The seller has received GEL 2,400 for three future months and separately holds a GEL 1,000 deposit. Following review, the parties agree that all three prepaid months fall within the buyer's period. The reconciliation should show GEL 2,400 prepaid rent and GEL 1,000 deposit separately: GEL 3,400 to be accounted for in total. This is not extra income or a universal calculation rule. The first amount already pays for occupation; the second relates to a separate obligation.

Document how the funds and any counterclaims are handled within the agreed transaction structure. If a rental period is split, establish the allocation method before payment rather than inventing it afterwards.

Organise a three-party reconciliation

With the participants' agreement, arrange a joint document exchange or meeting involving seller, buyer and tenant. The purpose is to confirm facts, not to pressure the occupant.

Participant	Matters to clarify
Seller	Complete agreements, receipts, promises and outstanding issues
Tenant	Actual payments, deposit, contents and known arrangements
Buyer	Continuing tenancy or the conditions for vacant possession
Everyone	Contacts, effective dates, financial reconciliation and documents

The resulting paperwork might be a reconciliation record, amendment, notice or another lawyer-prepared document. Do not sign a template that accidentally ends a tenancy you want to keep or introduces terms nobody agreed.

If you need the apartment for yourself

Do not organise your move around “the tenant will leave once you pay”. Establish the lawful basis, realistic timetable and necessary agreements for ending the tenancy and handing over the property.

The sale agreement should clearly address the required condition, deadlines, evidence of vacancy and consequences of delay. Discuss a retention or another security arrangement with the lawyer and participants where appropriate; one payment mechanism is not suitable for every transaction.

After vacancy, inspect again. Confirm that the tenant's belongings have been removed, agreed contents remain, condition is recorded and meters and keys are handed over. Access and inspection must be lawful and agreed. Changing locks, cutting off services or removing belongings is not a substitute for the proper procedure.

If the tenancy continues

Before the next payment, agree a clear notice identifying the contact person, effective date of new payment details and a way for the tenant to verify the message independently. A new number sending unverified bank details should not be the sole basis for changing payments.

Transfer the agreement file, inventory, repair history and open maintenance requests. Clarify access arrangements for inspections and servicing. The sale should not lead to unexpected visits without agreement with the occupant.

Do not describe the contractual rent as a guaranteed investment return. Assess expenses, performance and possible future vacancy separately. This article concerns the handover of existing arrangements rather than forecasting profit.

Frequently asked questions

Must a new tenancy agreement always be signed?

Do not assume so. The appropriate documentation and notice should follow a review of the existing relationship and records.

Can the buyer immediately increase the rent?

Ownership change should not be treated as independent permission to change the price. Check the agreement, applicable law and procedure for agreeing changes.

What if the seller denies holding a deposit but the tenant says one was paid?

Pause the final reconciliation of that issue and request evidence. Resolve the discrepancy before payment rather than leaving it to the future owner.

✅ Confirm the essentials before payment

Have the agreement and amendments reviewed, identify occupants, reconcile payments and document separate arrangements for deposits and prepayments. Agree the handover scenario and reliable contacts. Resolve material inconsistencies in writing.

If you are considering an apartment through BuyHome, tell us whether you want to retain the tenancy or move in yourself. This helps organise the right sequence of viewings and discussions. Have the legal transaction terms checked by a lawyer.