Legal Aspects of Purchasing an Under-Construction Apartment – How to Protect the Buyer’s Interests?

Purchasing real estate is one of the most significant financial decisions for every individual. A new apartment, a new living space, is often associated with a new stage in life — however, this process requires not only an emotional decision but also a thorough legal analysis.

KH & PARTNERS | Khachapuridze & Partners, as a law firm with years of experience in real estate and civil law, advises that any real estate acquisition should be carried out with strict legal analysis and documentary control.

Purchasing an Under-Construction Apartment – Advantages and Legal Risks

Buying an apartment during the construction phase offers much greater flexibility compared to purchasing a completed project. The key advantages include:

• Relatively lower price
• Flexible payment schedule
• A wider selection of floors and layouts
• Control over construction quality and progress

However, this stage also hides major legal risks, which are often unclear or unknown to buyers.

KH & PARTNERS strongly advises: Before purchasing an apartment, check not only the developer’s reputation but also its legal standing thoroughly.

What Should You Pay Special Attention To?

1. The Developer’s Legal Status

Before making a decision, the buyer must check the developer in the public registry. It is essential to determine:

• Whether the company has ongoing legal disputes
• Whether the property is under seizure or burdened by a mortgage
• Whether the company is undergoing enforcement or liquidation

2. Real Estate Status and Cadastral Data

An under-construction apartment must have an individual cadastral code. It should be up-to-date and fully recorded in the public registry, ensuring that the apartment is legally separated from the overall construction site.

3. Contract Registration in the Public Registry

Any type of sales agreement, whether preliminary, installment-based, or a primary contract, must be registered in the public registry.

An unregistered contract in the registry does not create legal obligations for third parties and does not protect the buyer from the risk that the apartment might be resold or used to secure the seller’s other obligations.

What Should a Sales Contract Include?

KH & PARTNERS’ legal experts emphasize the following points, which must be included in the contract:

• The exact deadline for construction completion
• Conditions for putting the building into operation
• The handover condition of the apartment (black frame, white frame, renovated)
• Responsibilities of both parties in case of delays
• Penalties for delays or mechanisms for damage compensation
• Legal clearance of the apartment from third-party claims

Clearly defined contract terms not only protect the buyer’s interests but also reduce the risk of misunderstandings, which might otherwise lead to legal disputes.

Mortgage – Is It a Problem?

A mortgage listed in the public registry extract is a formal restriction that indicates that the property is pledged as collateral for a loan, and upon sale, the creditor’s claims must be satisfied first.

However, it should be noted:
📌 A mortgage is not a defect in ownership rights, as it is officially registered information, and the buyer should be aware of it.

KH & PARTNERS recommends that if a property has a mortgage:

• The buyer must request a written guarantee that the mortgage will be removed before the apartment is transferred
• Review documents confirming the debt repayment
• Include a specific clause in the contract regarding the obligation to lift the mortgage

KH & PARTNERS’ Legal Support

Khachapuridze & Partners offers comprehensive legal services for real estate transactions. Our team professionally handles:

• Legal analysis of the developer and property
• Drafting and reviewing sales contracts
• Managing the registration process in the public registry
• Legal representation in case of disputes to protect the buyer’s interests

Our goal is to ensure that your apartment purchase is legally secure, transparent, and sustainable.

Conclusion

Purchasing real estate is a legally significant step that requires a high level of legal awareness. With KH & PARTNERS’ expert legal support, you receive a comprehensive legal analysis, risk assessment, and assurance that your transaction will not turn into a legal problem.

📩 Contact us today for a legal consultation and protect your interests professionally.
🌐 Visit: www.khlaws.com
KH & PARTNERS – Khachapuridze & Partners: Your Trust, Our Responsibility.