Smart contracts for real estate transactions in Georgia

The National Agency of Public Registry introduced smart contracts for real estate transactions. This option is available for immovable property sales and mortgage contracts.

The service is available for Georgian citizens with a valid Georgian ID card or passport, residing anywhere in the world.

To use the service, the interested party should register for an online session via an electronic link. The transaction can be completed via any device (mobile phones, computers) with microphones and video call capabilities.

Identification and verification of the transaction parties are carried out through distance communication channels per the instructions provided by the operator and AI-integrated software. The process allows the participation of the seller and purchaser for sales contracts and also a bank representative in the case of a mortgage.

In addition to the technical innovation allowing easy remote transacting, the Public Registry also integrated a much-needed escrow service, provided by the Bank of Georgia, for paying the purchase price. The escrow service integration allows the parties to control the purchase price payment and title transfer risks. Upon the initiation of the application, the purchase price amount will be deducted from the buyer's account and placed in an escrow account maintained by the bank. Once the title is transferred to the buyer, the amount will be automatically transferred to the seller's account. As announced by the Public Registry, the escrow service also provides the possibility to manage mortgage financing deals.

The registration service fee for using smart contracts is the same as in the case of regular registration, while the escrow service costs GEL 35 (circa 15 USD).