Delivery Date (Off-Plan)
NAPR · Completion Date · Handover Date · Target Completion Date · Estimated Completion Date
Definition
The delivery date in off-plan real estate is the contractually specified deadline by which a developer must complete construction, obtain municipal operational approval, and hand over physical possession of a property to the buyer. In Georgia, this deadline is closely tied to agreed finish states (such as White Frame or Turnkey) and standard contractual grace periods.
In detail
Definition and Legal Significance
In off-plan real estate transactions, the delivery date (or completion date) represents the contractually binding deadline by which the developer must complete construction work and formally transfer the unit to the buyer. This date is codified in the preliminary sale and purchase agreement registered with the relevant legal registry.
Achieving the delivery date involves two core elements:
1. Physical Handover: The completion of construction according to the agreed architectural specifications and finishing standard.
2. Legal and Municipal Approval: Obtaining the municipal Act of Acceptance (also known as the Exploitation Act or commissioning), which legally authorizes the building for residential occupancy.
Delivery States in Georgia
In the Georgian property market, the delivery date does not automatically signify a move-in ready apartment. Instead, the handover condition depends on the contractually agreed frame status:
- Black Frame: Structural concrete, basic exterior walls, and entry doors complete; interior utilities absent.
- White Frame: Sub-floors laid, perimeter walls plastered, utility points brought inside the unit, and balcony finished.
- Green Frame: White frame features plus installed heating pipes, electrical wiring, and completed wall preparations.
- Turnkey: Fully finished, painted, tiled, and frequently furnished apartment ready for immediate rental or occupancy.
Grace Periods and Delay Clauses
Standard developer contracts in Georgia almost universally include a grace period—typically ranging between 3 and 6 months past the nominal delivery date. This cushion accounts for adverse weather conditions, supply chain bottlenecks, or municipal permitting delays.
Legal penalties or liquidated damages for late delivery only begin accruing after the grace period expires. Typical contractual penalties in Georgia range from 0.01% to 0.1% of the total property purchase price per day of delay.
Legal Process at Handover
Upon reaching the delivery date, the parties undergo a formal handover procedure:
1. Property Inspection: The buyer or an independent inspector reviews the unit against the technical specification schedule attached to the preliminary agreement.
2. Defect List (Snagging List): Any structural or cosmetic deficiencies are documented in writing, with a mandated remediation timeline for the developer.
3. Acceptance-Handover Act: Once satisfied, both parties sign the formal acceptance act.
4. Final NAPR Registration: The buyer converts their preliminary ownership right into full title ownership at the Public Registry.
Georgian context
In Georgia's primary real estate market—particularly in Tbilisi and Batumi—off-plan delivery dates are registered alongside the Preliminary Purchase Agreement at the National Agency of Public Registry (NAPR). Georgian law dictates that the advertised price for new-build residential units includes an 18% Value Added Tax (VAT), meaning buyers face no additional VAT surcharge upon reaching the delivery date. Buyers should note that while construction completion and physical delivery may occur on schedule, formal municipal commissioning (Exploitation Act) can sometimes take several additional months. Investors seeking Georgian short-term residency must ensure the property valuation meets or exceeds the mandatory 150,000 USD threshold upon formal legal registration after completion.
Real example
An investor purchases an off-plan apartment in Tbilisi for $160,000, with an advertised delivery date of December 31 in 'White Frame' status. The Preliminary Purchase Agreement registered at NAPR includes a 90-day grace period, establishing the final penalty date as March 31. The developer finishes construction on February 15. The buyer conducts a walk-through inspection, signs the Acceptance-Handover Act, and registers full ownership at NAPR. Because completion occurred within the grace period, no late penalties apply, and the buyer begins interior finishing works to prepare the unit for long-term rental.
Common mistakes
- ×Confusing the structural completion date with the final turnkey or occupancy date.
- ×Assuming construction delay penalties apply immediately on the advertised delivery date without factoring in contractual grace periods.
- ×Failing to register the Preliminary Purchase Agreement with the National Agency of Public Registry (NAPR) to secure priority legal rights.
- ×Expecting an additional 18% VAT charge upon delivery, failing to realize VAT is already legally included in the developer's price.
- ×Applying for real estate residency before the unit is formally completed, appraised at $150,000 or more, and fully registered.
Frequently asked questions
What happens if a developer in Georgia misses the off-plan delivery date?
If a developer exceeds the delivery date plus any contractual grace period (usually 3 to 6 months), the remedies set out in the Preliminary Purchase Agreement apply. Contracts standardly stipulate daily late penalties (typically 0.01%–0.1% of the contract value per day). If the delay is substantial and extended beyond legal parameters, the buyer has the right to unilaterally terminate the contract and seek a full refund plus damages through Georgian courts.
Does the delivery date mean my apartment is ready to live in?
Not necessarily. In Georgia, off-plan properties are handed over in varying states: Black Frame, White Frame, Green Frame, or Turnkey. The delivery date marks the completion of the specific frame state specified in your contract. If you purchase White Frame, you will need an additional 2 to 4 months of interior renovation work after handover before the property is inhabitable.
How long is a typical grace period for off-plan delivery in Georgia?
Standard developer contracts in Georgia typically specify a grace period of 3 to 6 months (90 to 180 days) beyond the stated target delivery date. This period protects developers from unexpected disruptions such as severe weather or utility connection delays. Financial penalties for delay do not begin until this grace period has fully elapsed.
Is 18% VAT charged extra on the delivery date in Georgia?
No. Under Georgian tax legislation, the 18% Value Added Tax (VAT) on primary construction projects is legally included in the developer's advertised sale price. Buyers are not required to pay an additional 18% tax upon unit delivery or final ownership registration.
Can I obtain Georgian residency before the off-plan delivery date?
Generally no. Georgia's short-term residence permit requires an investment in real estate with an appraised value of at least 150,000 USD. While preliminary ownership of an unfinished off-plan unit can be registered at NAPR, full residency application typically requires the completed, commissioned unit with a formal appraisal proving the $150,000 minimum threshold.
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