Document Checklist Before a Deposit: How Not to Risk Your Money—Step by Step

Why check documents before paying a deposit 🛡️

Paying a deposit is a key step when buying property. It shows commitment, but it also creates exposure. Before transferring any funds, make sure you have essential documents and clear terms for refund or forfeiture to avoid losing money.

Article structure

1. What a deposit means and its role.
2. Essential ID documents for buyer and seller.
3. Property documents: ownership, encumbrances, technical papers.
4. How to verify documents: practical steps.
5. Key clauses to include in a deposit agreement.
6. Red flags and practical examples.

What a deposit is — short explanation ✅

A deposit is an advance payment that secures the buyer's intent. It should be clear in writing what happens if either party withdraws: return, retention, or other remedies. Put these terms in a written agreement or preliminary contract.

Essential ID documents for both parties 📑

• Valid passports or national IDs.
• Tax or identification numbers, where relevant.
• Power of attorney if a representative acts on behalf of a party.

Tip: Verify identity details across passport copies, power of attorney, and registry extracts to prevent fraud.

Property documents to request from the seller 🏠

• Proof of ownership (deed, previous sale agreement, registration record).
• Current extract from the national property registry.
• Cadastral and technical documentation (floor plan, building technical passport).
• Information about encumbrances: mortgage, seizures, servitudes, utility debts.
• For new builds — developer permits and purchase agreements.

Obtain copies and cross-check their authenticity with official sources or a notary.

How to verify documents — practical steps 🔍

1. Ask the seller for copies of all documents and passport photos.
2. Order an up-to-date registry extract (online or via a notary).
3. Check for encumbrances and debts via the registry and utility providers.
4. Review transaction history: prior disputes or arrests on the property.
5. If using a representative, inspect the original power of attorney and confirm its validity.

If anything is unclear, do not pay the deposit until you consult a notary or lawyer.

What should a deposit agreement include — key clauses ✍️

• Full details of the parties and the property (address, cadastral number).
• Deposit amount and the transfer method (cash, bank transfer, notary escrow).
• Conditions for return and forfeiture: when the deposit is returned, when it is retained, and consequences of contract termination.
• Deadlines for signing the main contract and obligations before that date.
• Whether the deposit is considered part-payment or a penalty in case of breach.
• Signatures, date, and proof of receipt (receipt or signed note).

Consider using a notary escrow or bank escrow for significant sums.

Red flags — watch for these 🚩

• Seller refuses to provide registry extract or asks to delay checks.
• Mismatch between passport data and registry records.
• Active mortgage, debts, or ongoing litigation on the property.
• Pressure to pay immediately without paperwork.
• Questionable powers of attorney or forged seals.

If you spot any red flag, pause and verify.

Practical examples and scenarios

• Safer path: written deposit agreement, clean registry extract, funds placed in a notary escrow.
• Risky path: seller insists on cash without any paperwork or registry confirmation.

Choose the safer route — a short delay for checks is worth protection.

Tips for foreigners and investors 🌍

• Check local rules for foreign buyers and registration procedures.
• Use a translator or legal advisor if you don’t understand the documents.
• Notarial checks and registry verification are the minimum safe steps.

Quick checklist before paying a deposit ✅

• Seller and buyer IDs verified.
• Up-to-date registry extract obtained.
• No encumbrances or debts found.
• Written deposit agreement with return conditions.
• Funds transferred via notary/escrow or with a receipt.

If you need help checking documents or drafting a deposit agreement, our team at BuyHome can assist and guide you through the process. Start searching properties or contact us for tailored support: https://buyhome.ge/en/search

Contact BuyHome — we’ll help you secure the deposit and proceed safely with the purchase.