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Property registry due diligence: what an extract does not show

Check title, encumbrances, cadastral boundaries, permits and actual use.

In brief

A registry extract establishes recorded rights and encumbrances, but not the physical accuracy of a building, actual boundaries or utility conditions. Cross-check cadastral plans, permits, physical condition and relevant litigation. Convert key findings into express seller warranties and completion conditions.

Applicable legislation: Law of Georgia on Public Registry, Civil Code of Georgia

Applying the rule in practice

Where the extract lists 800 m² but the fence appears inconsistent with the parcel plan, obtain a measured plan and check neighboring titles. The numerical area alone does not answer a boundary-overlap question.

Registry and documentary record

An extract summarizes registered rights but may not resolve physical boundaries, building condition or compliance with permits. Obtain cadastral materials, relevant historical records, underlying title documents and information on restrictions.

Third-party interests

Mortgages, attachments, easements and other interests have different consequences. Re-check the property before completion, not only when negotiations start. Allocate responsibility for discharging restrictions and for releasing funds.

Checks beyond the registry

Review permits, occupancy status, land-use restrictions, utilities and potential neighbour disputes. For commercial premises, consider the intended activity's regulatory requirements. Technical inspection complements rather than replaces legal diligence.

Why history can matter

The latest extract may not reveal the transaction or decision underlying title. In material or higher-risk deals, review historical registrations and relevant title documents. Registry litigation often concerns the validity of underlying rights and third-party interests. The depth of enquiry should reflect the identified risk.

Cadastral consistency

A physical fence or wall may not coincide with registered cadastral boundaries. Where uncertain, compare plans and consider a survey. The contractual description of area should align with cadastral records. A disputed boundary may affect both use and future development potential.

When the register and reality differ

A mismatch between cadastral data and actual boundaries or use is a due-diligence warning, not automatically evidence of misconduct. Obtain title, cadastral plan, underlying registration documents and relevant municipal records. Verify mortgages, seizures, easements or other rights. Make rectification or release a documented completion condition instead of relying on assurances that 'everything is registered'.

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