Deposit and Advance in Georgia: How to Make It Safe for the Buyer

Deposit vs Advance — what buyers need to know 🏠

When buying property in Georgia, buyers often pay part of the price before the official transfer or registration. That payment can be called a "deposit" or an "advance." For buyers, the most important thing is how the transaction is documented and what protections are written into the agreement.

Main differences

• Deposit is often used as a security: contractual wording can make it non-refundable or subject to penalties depending on who breaches the deal.
• Advance is a prepayment toward the final price; it is usually recoverable or credited toward the purchase, depending on the terms.

Note: local practice and the exact contract language determine legal consequences. Don’t rely on names alone — rely on the text.

Common buyer risks and mitigation ⚠️

• Seller is not the true owner or there are hidden encumbrances.
• No written agreement or vague receipt for the payment.
• Cash transfers with no trace or unclear payment purpose.
• Disputes over timing, quality, or registration.

How to reduce these risks:

• Require a written preliminary agreement or deposit/advance contract with clear return and breach conditions.
• Verify ownership and encumbrances via the property registry and request original documents.
• Use traceable payment methods — bank transfer with clear purpose, escrow or trustee account where possible.
• Work with a local lawyer or a reputable agency to draft and review documents.

What to include in the contract ✅

• Full identification and bank details of both parties.
• Clear description of the property: address, size and cadastral ID if available.
• Exact amount and method of payment for the deposit/advance.
• Deadlines for signing the main sale contract and for registration.
• Conditions for return, partial refund or forfeiture of funds.
• Penalties and remedies for non-performance.
• Dispute resolution method and applicable jurisdiction.

Practical payment security options 🔐

• Bank transfer specifying the payment purpose — creates a clear paper trail.
• Notarised receipt and notarisation of the preliminary agreement — strengthens its legal standing.
• Holding funds in an escrow or trustee account managed by a neutral third party — the safest option when available.
• Using the real estate agency to hold evidence and confirm payment terms.

Example contract structure (short)

1. Identification of parties and property.
2. Purchase price, deposit/advance amount and payment method.
3. Deadlines for the final contract and registration.
4. Return and forfeiture conditions.
5. Signatures, dates and notarisation where required.

Buyer tips from BuyHome experts 👥

• Never transfer funds on a verbal promise. Always get a written agreement.
• Ask for copies of ownership documents and have them professionally checked.
• Put concrete penalties for unjustified withdrawal in the agreement to discourage breaches.
• Prefer bank transfers or escrow to cash — they protect you and provide evidence of payment.

If you need help preparing a secure preliminary agreement or checking documents, our team can assist. Browse offers or request a consultation on the site: https://buyhome.ge/en/search and https://buyhome.ge/en

Contact BuyHome — we’ll help you choose a safe method to hand over deposit or advance and prepare a reliable contract.