Deposit for a Foreigner: What Must Be Included—Examples

Deposit for a foreign buyer: why the contract matters 🏡

When a foreigner makes a deposit (earnest money) on a property in Georgia, a clear agreement protects both parties. For the buyer it limits the risk of losing funds unfairly; for the seller it secures the commitment to sell.

Key risks to be aware of

• Vague return conditions if the deal collapses.
• Unclear handling of funds and lack of receipts.
• Language mismatches or poor translation.
• Seller’s legal issues with the property that are discovered later.

Must-have clauses in the deposit agreement ✅

1. Identification of the parties

• Full legal names, passport details, addresses and contacts. Explicitly state the buyer’s foreign citizenship and passport number.

2. Description of the property

• Address, cadastral or registry identifier if available, size/type and current ownership status.

3. Deposit amount and transfer method

• Name the amount as a "deposit" or "earnest money" and specify how it will be transferred: bank transfer to specified account, cash with signed receipt, or escrow via notary/agency.
• State the currency and who pays transfer fees.

4. Deadlines and transaction steps

• Set reasonable timelines for signing the main sale agreement and transferring title. Allow for mutually agreed extensions.

5. Conditions for refund or forfeiture

• Explicitly list scenarios when the deposit is returned (e.g., seller fails to provide clear title) and when it is forfeited (e.g., buyer withdraws without cause).
• Example phrasing: "If the buyer withdraws unreasonably, the deposit is forfeited to the seller; if legal obstacles attributable to the seller are found, the deposit will be returned in full."

6. Taxes, fees and costs

• Allocate responsibility for notary fees, registration fees and other transaction costs. Clarify that taxes on the sale are separate.

7. Translation and notarisation

• Recommend a bilingual (local language + buyer’s language) agreement with certified translation or notarisation. Require seller to provide certified copies of documents in translation if needed.

8. Force majeure and dispute resolution

• Brief clause on unexpected events, and specify dispute resolution method — negotiation, mediation or Georgian courts.

Practical example clauses ✍️

• "Buyer transfers the deposit by bank transfer to Seller’s account. Transfer is confirmed by the bank statement which forms proof of payment."

• "If within the agreed term Seller cannot present clear title, the deposit will be returned to Buyer within a reasonable period after discovery of such defect."

• "If Buyer unilaterally withdraws without legal grounds, the deposit will be retained by Seller as compensation."

Practical tips for foreigners 🌍

• Use a certified interpreter during signing to avoid misunderstandings.
• Consider escrow with a notary or trusted agency to hold funds until conditions are met.
• Always request registry extracts and checks for encumbrances before paying.
• Keep all receipts, bank confirmations and written communication.

When to hire a lawyer or an agency 🧑‍⚖️

If you have doubts about translation, refund mechanisms, or property title, hire a local lawyer or a real estate agency. They can prepare a bilingual contract and manage a secure deposit process.

Final thoughts

A well-drafted deposit agreement is a buyer’s protection and a seller’s assurance. Clear clauses about amount, transfer, refunds and deadlines minimize risk and make the transaction predictable.

If you'd like, our team can review your draft agreement or prepare a bilingual deposit contract and assist with secure deposit handling. Contact BuyHome for help selecting and securing property in Georgia: https://buyhome.ge/en/search