Resale Risks: Arrests, Debts, Illegal Remodeling—How to Check

Risks when buying a resale property — what to watch for 🏠

Purchasing on the secondary market can be faster and sometimes more affordable, but it often carries hidden risks: property seizures, unpaid debts, unauthorized renovations and ownership disputes. This guide explains how to check a property step by step and what documents to request.

Quick checklist before you commit ✅

• Confirm the seller's title to the property.
• Check for encumbrances: mortgages, seizures, enforcement proceedings.
• Verify whether renovations were approved and legal.
• Match seller identity data with registry entries and documents.
• Request proof of no utility or tax debts.

Documents to request from the seller 📄

• Title documents (sale agreement, deed, privatization papers) — originals or notarized copies.
• An up-to-date extract from the national property registry showing ownership and encumbrances.
• Documents confirming the absence (or presence) of seizures or restrictions.
• Technical plan and layout — to check for renovations.
• Utility bills and certificates about outstanding payments.

Where to check official information 🔎

• Property registry extract is the primary source: it shows owner, encumbrances and legal limitations.
• Databases of enforcement proceedings and court orders to detect seizures or restrictions.
• Local technical authorities for permits and approvals related to renovations.

If anything seems unclear, ask for separate extracts or written confirmations. Encumbrances and enforcement cases are often the main source of surprises.

Common red flags to watch for 🚩

• Seller cannot provide original title documents.
• Discrepancies between the seller’s ID and registry data.
• Records of prohibitions on disposal or ongoing enforcement proceedings.
• Renovations that look OK but lack formal approvals.
• Frequent recent ownership changes — warranting a deeper check.

How to verify renovations and why it matters 🛠️

Renovations can affect safety, value and the ability to register the sale. Always request the technical passport and ask in writing whether any changes were officially approved. If renovations are not legalized, you may need to restore or regularize them after purchase — factor that into your decision.

What to do if you find debts or seizures — practical steps 🔐

1. Don’t sign preliminary agreements until a full check is completed.
2. Ask the seller to clear the debts and provide proof, or arrange transaction protections (escrow, notarized deposit, or withholding part of the price until the issue is resolved).
3. Get legal advice from a property lawyer who can assess whether the deal can be structured safely.

Example of buyer protection — practical workflow ✍️

• Initial inspection and document request.
• Obtain registry extracts and debt-related certificates.
• If doubts appear, order a legal review of the contract and conditions.
• Only make deposits or sign preliminary agreements after agreeing on how to remove encumbrances.

Tips for investors and future residents 🧭

• Investors should focus on the property’s legal history and rental potential — unresolved legal issues can block leasing and reduce returns.
• Buyers planning to live in the property should pay special attention to technical condition and legality of renovations to avoid unexpected major expenses.

Final checklist before signing 📋

• Original title documents present and consistent.
• Up-to-date registry extract with no encumbrances.
• Certificates confirming no utility or tax debts.
• Approved renovations where applicable.
• Legal review of the sale contract.

If you need help checking a specific apartment, preparing documents or accompanying the deal, BuyHome can assist. Contact us to buy with confidence — start a search here: https://buyhome.ge/en/search