How Settlement Works: Cash, Transfer, Account—What’s Used in Practice

How payments in a property deal usually go

Buying property is about more than choosing the right home — you also need a safe way to pay. In Georgia, common methods are cash, bank transfer, and payments via an account/escrow handled by a notary or trusted intermediary. Each method balances speed, cost and legal protection differently. 🏠💳

Typical stages of payment

1. Agree on price and terms.
2. Sign a preliminary agreement or pay a deposit to show commitment.
3. Carry out due diligence: check the registry and encumbrances.
4. Sign the main contract (often at a notary).
5. Transfer funds under the contract terms and register ownership.

Payment methods: pros and cons

Cash payments 💵

• Pros: immediate, no bank fees, simple for small transactions.
• Cons: security risks, harder to prove payment in disputes, less transparency for banks and tax authorities.

Practical tip: if you use cash, always get a detailed receipt with amount in words and figures, full names, ID numbers, date and signatures. Choose a safe location and consider a witness or video record.

Bank transfer 🏦

• Pros: clear audit trail, safer for both sides, traceable by bank records.
• Cons: possible fees, processing time, and currency conversion considerations for foreign transfers.

Practical tip: make sure account details match the contract. Save the payment confirmation and bank statements. If transferring from abroad, check terms with your bank in advance.

Account / escrow / notary deposit 🔐

• Pros: highest protection — funds are held until conditions (like registration) are met.
• Cons: additional steps and possible service fees, slightly longer process.

Practical tip: include escrow or notary deposit clauses in the contract for large deals or when parties are remote. This reduces risk for both buyer and seller.

What to check before making a payment

• Identity and account details of the other party — match these with the contract.
• Legal status of the property: encumbrances, disputes, or restrictions.
• Availability of required technical documents and permits.
• Exact conditions for handover and transfer of keys.

Protecting both sides: practical measures

• Define deposit and consequences for breach in the contract.
• Specify the payment order, deadlines and responsible persons.
• Keep all records: receipts, bank confirmations, signed agreements.
• Consider a lawyer or trusted agent to oversee transfer and registration.

Common mistakes to avoid ⚠️

• Sending funds to account details that do not match the contract.
• Accepting verbal confirmations instead of written receipts for cash payments.
• Skipping registry checks and due diligence.

Practical scenarios

• For small, local deals between trusted parties, cash with a proper receipt can be acceptable.
• For cross‑border or remote transactions, bank transfers or escrow are safer and more practical.
• For high‑value purchases, consider escrow/notary deposits to ensure funds are released only after registration is complete.

Simple pre‑payment checklist ✅

• Verify all account details against the contract.
• Request and store written receipts or bank confirmation.
• Confirm contractual conditions are met before final payment.
• Agree on handover and registration steps in writing.

Final recommendation

The best payment method depends on deal size, trust level, and how much formality you want for protection. Bank transfers and escrow generally provide better proof and security; cash is faster but riskier. Always document everything and don’t hesitate to involve a notary or lawyer when in doubt.

If you need practical help choosing a safe payment method for your purchase, our team can assist with document checks and secure payment options. Contact BuyHome for help finding property and managing the payment process: https://buyhome.ge/en/search