Property Handover
key handover · delivery of possession · apartment takeover
Definition
Property handover is the operational stage in a real estate transaction where legal possession, physical control, and risk of damage transfer from the seller or developer to the buyer. In Georgia, this process typically culminates in the signing of a Delivery-Acceptance Act following a thorough pre-handover inspection of the premises.
In detail
What Is Property Handover?
Property handover is the formal operational transition of a real estate asset from the seller or property developer to the buyer. While legal ownership in Georgia is established through registration at the Public Registry (NAPR), physical handover signifies the actual delivery of possession, control, and legal risk associated with the property.
Key Components of the Handover Process
1. Pre-Handover Inspection (Snagging): The buyer or their designated legal/technical representative inspects the property to verify that construction, finishing, and engineering systems conform to the preliminary sales contract specifications.
2. The Snagging List / Defect Act: Any incomplete works, structural flaws, or non-compliant finishes are formally documented in an official defect protocol, setting a binding deadline for developer rectification.
3. Delivery-Acceptance Act (Act of Acceptance): A legally binding document signed by both parties confirming that the buyer accepts the physical state of the property, subject to any noted warranty items or agreed rectification terms.
4. Key Transfer and Physical Possession: Handover of physical access tokens, access codes, and key sets to the buyer.
5. Utility and HOA Registration: Formal transfer of utility meters (electricity, gas, water) and building management (HOA) fee responsibilities to the new owner.
Primary Market (Off-Plan) vs. Secondary Market
- Off-Plan / New Builds: Handover occurs upon construction completion and formal building commissioning. It is heavily tied to delivery stage standards such as Black Frame, White Frame, or Green Frame.
- Secondary Market: Handover usually aligns with the full payment settlement and legal title transfer, involving a simpler walkthrough to verify chattels, vacant possession, and clear utility accounts.
Georgian context
In the Georgian real estate market, physical property handover is legally distinct from registration at the National Agency of Public Registry (NAPR). Buyers can be registered as legal owners before physical handover occurs, or vice versa, depending on contract terms. Developers advertise off-plan units delivered in specific finishing states (Black Frame, White Frame, or Green Frame), making a detailed pre-handover inspection critical to ensure all stipulated utilities, floor screeds, and external joinery meet contract standards. Note that Georgian VAT on primary residential real estate is 18% and is legally included in the developer's advertised price; it does not change during handover. Utility meters (Telasi, Energo-Pro, Tbilisi Energy, GWP) must be registered under the new owner's name following the signing of the Delivery-Acceptance Act.
Real example
An investor purchases a {{data:apartment_size}} White Frame apartment in Tbilisi. Upon notice of construction completion, the buyer conducts a pre-handover walkthrough with a technical inspector. The inspection reveals unsealed window frames and missing electrical wiring points. These issues are listed in a Defect Act attached to the Delivery-Acceptance Act. The developer agrees in writing to remedy the defects within 14 business days. Once rectified, the buyer signs the final Delivery-Acceptance Act, receives the physical keys, and transfers the water and power meters into their name.
Common mistakes
- ×Assuming legal title registration at NAPR automatically grants immediate physical handover.
- ×Signing the Delivery-Acceptance Act without performing a technical inspection or listing existing defects.
- ×Failing to immediately transfer utility accounts into the buyer's name, resulting in utility disconnection or accumulated seller debts.
- ×Confusing the developer's overall building completion certificate with individual unit handover.
Frequently asked questions
What is the legal difference between NAPR registration and property handover in Georgia?
NAPR registration confers official legal title and public ownership rights. Property handover transfers physical possession, operational risk, and maintenance responsibilities. While closely linked, they are separate legal actions regulated by distinct contractual clauses.
Can I complete a property handover remotely in Georgia?
Yes. Buyers can issue a notarized Power of Attorney (PoA) to a lawyer, real estate agent, or technical inspector in Georgia. The appointed representative can conduct the physical inspection, sign the Delivery-Acceptance Act, collect keys, and manage utility account transfers on the buyer's behalf.
What happens if I discover defects during the pre-handover inspection?
Defects should be listed in a formal written protocol (Defect Act) attached to the handover documentation. The developer must rectify the issues within the contractually defined timeframe before the final acceptance act is executed or prior to final payment release.
Who pays utility charges during the handover period?
The developer or previous owner is responsible for all utility consumption up to the official date written on the signed Delivery-Acceptance Act. From the date of handover onward, all consumption and maintenance charges fall to the buyer.
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