What Are the Legal Risks of Entering Into a Lease Agreement?

In the leasing process, poorly drafted or entirely unwritten agreements remain one of the most common — and at the same time, most dangerous — practices in real estate management.

According to the Civil Code of Georgia, a lease is a bilateral, compensated agreement under which the lessor undertakes to transfer the property to the lessee for temporary use, for a specific term and under defined conditions.

Legal risks of improperly executed lease agreements:

• Lack of evidence in court: A verbal agreement cannot reliably protect the interests of either party in legal proceedings.
• Legal ambiguity: Without a written contract, the rent amount, duration, and terms can easily become the subject of dispute.
• Non-compliance with state regulations: An unregistered lease may be deemed undeclared income and considered illegal entrepreneurial activity.
• Damage or non-return of property: If the leased property is damaged or not returned, assigning liability without a contract becomes significantly more difficult.
• Invisible stable income for banks: Income from a registered lease is perceived as a reliable and verifiable financial stream.

KH & PARTNERS | Khachapuridze & Partners offers you:

• Full legal drafting of lease agreements, in line with applicable legal standards and protecting the interests of all parties
• Lease registration support in the Public Registry (optional)
• Legal review and adjustment of agreement terms, including:
  • Payment terms and deadlines
  • Description of property condition at the time of transfer
  • Termination conditions
  • Party liabilities in case of breach
• Legal representation in disputes arising from lease relations
• Tax advisory to avoid risks and ensure proper declaration of income

Contact us for legal consultation and secure lease structuring:
Mobile: +995 595 17 17 41
Phone: +995 32 2 11 10 20
Email: info@khlaws.com
Address: Ateni St. 16, 3/7, Tbilisi, Georgia
Website: www.khlaws.com

KH & PARTNERS – Khachapuridze & Partners
Your legal peace of mind at every stage of your lease.
We protect your interests — before a risk becomes a problem.