How to Vet a Developer in Batumi Before Buying: A Checklist for Foreign Investors
How to Vet a Developer in Batumi Before Buying: A Checklist for Foreign Investors
Georgia's real estate market is open to foreigners and known for its straightforward transaction process — but that doesn't mean it's without risk. The key difference from more heavily regulated markets (such as Russia's shared construction sector) is that Georgia has no mandatory escrow mechanism to hold buyers' funds in a bank until construction is complete. This means that due diligence on a developer falls largely on the buyer. Below is a step-by-step checklist to work through before making any payment — whether it's a reservation deposit or the full purchase price.
Step 1. Construction Permit
The first thing to request from a developer is the construction permit for the specific project. This is not a formality: without one, the company has no legal right to build, and buyers risk investing in a property that could later be deemed an unauthorized structure. Ask for a scanned copy of the document and, where possible, have a lawyer review it.
Step 2. Land Title Status
Confirm that the land on which the building is being constructed is properly registered and free of encumbrances, legal disputes, or restrictions. This is done by ordering an extract from the public registry — the National Agency of Public Registry (NAPR). If the land title is not clean, registering ownership of the apartment in the future may be impossible, regardless of how attractive the project looks on paper.
Step 3. Company History and Reputation
Before transferring any funds, research the following:
● how many projects the developer has completed and whether they were delivered on time or with consistent delays;
● whether the company has any unfinished or stalled projects;
● reviews from actual buyers, not just the marketing materials on the developer's website;
● any litigation involving the company or its management.
Established developers with a long track record of successful completions are generally more reliable than new market entrants — though their prices may be higher, which is worth factoring in when comparing options.
Step 4. Project Financing Structure
It's worth finding out how the developer is financing construction: through equity, bank loans, or primarily through presale proceeds from buyers. The greater the share of the developer's own funds or bank financing, the lower the risk of the project stalling if sales slow down. Banks are reluctant to lend to unreliable projects, so the presence of a banking partner is itself a positive indicator.
Step 5. In-Person or Remote Site Visit
If you are not physically in Batumi, ask a representative — a real estate agent, lawyer, or trusted contact — to visit the construction site in person and send you up-to-date photos or video. This allows you to:
● compare the actual pace of construction against what the developer claims;
● confirm that work is actively underway and not at a standstill;
● see the real surroundings of the property — neighboring buildings, infrastructure, and distance to the sea.
If a developer claims construction is in full swing but the site appears frozen — that's a serious red flag.
Step 6. Contract Terms, Not Just Sales Promises
Review the purchase agreement (or shared participation agreement, if that structure is used) carefully, paying attention to:
● an exact description of the finish level (shell, white box, or turnkey) with a specific list of works — not just a label;
● the handover conditions and timeline, and what happens if the developer misses the deadline;
● the procedure for project changes (layout alterations, material substitutions) and who has approval authority;
● the installment payment terms — schedule, amounts, and whether payments are tied to construction milestones.
Step 7. Bank Accreditation
If a developer works with multiple banks on mortgage programs, this is an additional indirect indicator of reliability: banks conduct their own assessment of the company and the project before offering financing to buyers.
Red Flags to Watch Out For
● The developer refuses to provide the construction permit or land title documents.
● The price is significantly below market with no clear explanation.
● The company was recently incorporated and has no completed projects.
● Pressure to make a quick decision ("reserve today only," "price changes tomorrow") with no time to review the documents properly.
● No possibility of an in-person or remote site inspection.
How All Property Batumi Handles Due Diligence
We work exclusively with developers whose reputation, permits, and construction progress we regularly verify ourselves — and we're upfront with clients about the risks of specific projects where they exist. When selecting a new-build property in Batumi, you receive not just a comparison of prices and floor plans, but an independent assessment of the developer's reliability.
Frequently Asked Questions
Is there a government registry of vetted developers in Georgia?
There is no official developer reliability rating. The main verification sources are the NAPR public registry (for the property and land), the company's track record of completed projects, and an independent legal review of the documentation.
Do I need a lawyer if I'm working through a real estate agency?
Even with agency representation, it makes sense to engage an independent lawyer to review the title documents — especially for high-value transactions.
What should I do if construction stops after I've paid?
First, preserve all correspondence and documents. Then consult a lawyer to assess the prospects of recovering funds or claiming penalties under the contract, and check whether any other buyers have filed lawsuits against the same company.
Before you reserve an apartment in a Batumi new development, All Property Batumi's specialists vet the developer and the project on your behalf — submit a consultation request.
