How to Vet a Developer in Tbilisi Before Buying at the Excavation Stage: A Complete Legal Checklist

04.12.2025

    Тбилиси недвижимость

     

    Buying property at the excavation stage in Tbilisi has long been one of the most profitable strategies for investors. At the early phase of construction, prices are 20–40% lower, and this growth is almost guaranteed by the time the building is completed. However, high returns always come with risks. At the excavation stage, responsibility lies almost entirely on the buyer: the building does not yet exist, which means the safety of the transaction depends on how thoroughly the developer has been vetted.

    Dmitry Pereverzev
    Head of Sales, Tbilisi Office

     

    Georgia’s construction market is open and dynamic, but unlike EU countries, it does not have strict mechanisms for shareholder insurance. The state does not supervise every transaction, so the investor — or their consultant — must conduct a full legal assessment. In this guide, we’ll explain how to check a developer in Tbilisi and which documents every trustworthy construction company must provide.

     

    Where the Developer Verification Process Begins

     

    Before reviewing the project, you must ensure that the company itself operates legally and transparently. This can be determined through several initial steps.

     

    Checking Registration in the National Public Registry

    Every developer in Georgia must be registered in the Public Registry. If the company is not listed in the database, it is a serious warning sign.

     

    Business History and Completed Projects

    The number of years on the market is an indicator of stability. The more completed projects and the wider the portfolio, the lower the risks. Young companies can also be reliable, but they require more careful due diligence.

     

    Presence of Legal Disputes and Debts

    The Public Registry allows you to check whether the company has ongoing court cases, property arrests, or debt obligations. Significant tax debt is another serious red flag.

     

    Transparency of Ownership Structure

    A reliable developer does not hide ownership information. If the structure is complicated or intentionally concealed, it is safer to avoid entering into a transaction with such a company.

    This initial audit provides an understanding of whether it is safe to move forward and whether the project is worth considering at the excavation stage.

     

    Тбилиси застройщики

     

    Required Permits Every Developer Must Have

    Once the company’s status is clear, the next step is the legal verification of the property itself. At this stage, it is crucial to ensure the developer holds all official documents for the land and construction. Don’t hesitate to request them — developers are obliged to provide full information to buyers.

     

    Here are the key documents to examine:

    – Ownership rights to the land
     The first thing to verify is whether the land belongs to the developer. Sometimes construction is carried out on leased land or land owned by a partner. It is essential to understand who the actual owner is.

    – Land-use designation
     The land must legally allow the construction of a residential building. If the designation does not match the project, the building may not receive approval for commissioning.

    – Building Permit
     This is the primary document, without which selling at the excavation stage is not permitted. A building permit confirms that the project has passed municipal review and meets standards.

    – Architectural project
     Blueprints must be registered with the Tbilisi municipality. They show the number of floors, location of utilities, and overall layout.

    – Additional checks

    While not mandatory for all developers, you should clarify.

    • whether soil expertise was conducted,
    • whether there is a bank guarantee or project financing,
    • whether the building permit was extended and why delays occurred.

    The absence of any of these points increases the risk of delays, project changes, or even failure to complete the building.

     

    idea panorama tbilisi

     

    What Must Be Included in the Purchase Agreement

     

    Even the most reputable developer does not guarantee a safe deal if the contract is poorly drafted. Therefore, reviewing the purchase agreement is an essential part of due diligence.

     

    The contract must include:

    • – fixed price and payment currency
    • payment schedule (preferably tied to construction stages)
    • responsibilities of both parties in case of delays
    • exact delivery deadlines and allowable extensions
    • description of the unit: floor, view, size, finishes, materials
    • conditions for contract termination
    • procedure for transferring ownership
    • clause on registering the agreement in the Public Registry (if required by the transaction format)

     

    Important: verbal promises such as “we will finish everything on time” have no legal force. Only the signed contract matters.

    Little-Known Verification Criteria and Red Flags Buyers Often Miss

    After legal due diligence, you should move on to reputation checks. Often this is what reveals the true reliability of the developer.

    What to find out:

    • whether the company delivered past projects on time
    • whether there are real reviews from owners
    • what the infrastructure around previous projects looks like
    • how openly the developer provides documents
    • whether they publish construction progress photos and reports 

    Key red flags to watch for when concluding a deal:

    • unusually low price with no reasonable explanation
    • missing building permit
    • no previously completed projects
    • developer avoids communication or refuses to provide documents 

    If any of these appear, it is safer to choose another project.

     

    tbilisi aliance centropolis

     

    How to Avoid Losing Money

    Financial risks are another crucial layer of due diligence.

     

    Here are the main rules that protect your capital:

    • payments should be made only under an official contract
    • funds must be transferred to the company listed in the agreement
    • never pay third-party companies or in cash
    • payment schedule should match construction progress 

    If installment payments are available, choosing this option is safer: the buyer pays as the project progresses and can monitor the pace of construction. This reduces risks if the project is delayed or altered.

     

    Buying at the excavation stage in Tbilisi remains the most profitable real estate investment strategy in Georgia. However, high returns are possible only when the developer undergoes thorough legal review. A comprehensive audit of documents, company history, contract terms, and reputation reduces risks to nearly zero.

     

    BD Realty’s legal team accompanies transactions in Tbilisi daily and conducts full project checks before clients make a purchase. Only projects that pass the verification process and hold all required permits make it into our database.

     

    Submit a request to receive a free legal checklist and a curated selection of reliable excavation-stage projects in Tbilisi.