Seller Verification
NAPR · PoA · Vendor Due Diligence · Seller Identity Verification · Title Owner Verification
Definition
Seller verification is the legal due diligence process of authenticating a property seller's identity, ownership rights, and authority to transfer title. In real estate transactions, it ensures the vendor holds registered legal ownership or a valid, active Power of Attorney, possesses full legal capacity, and is not subject to liens, bankruptcy, or freezing orders.
In detail
Understanding Seller Verification
Seller verification is a foundational step in real estate due diligence. It prevents legal disputes, title invalidation, and financial fraud by confirming that the party offering a property for sale possesses undisputed legal authority to execute the transfer.
Key Components of Seller Verification
1. Identity and Capacity Validation
- Individual Sellers: Verification requires validating government-issued identification (passport or national ID), checking civil status, and ensuring the individual has full legal capacity (i.e., not legally incapacitated or under court guardianship).
- Corporate Sellers: Verification involves auditing corporate registration records, confirming company standing, identifying ultimate beneficial owners (UBOs), and verifying that the representative has explicit corporate authority (e.g., board resolutions or director signing rights).
2. Ownership and Title Confirmation
- Cross-referencing the seller's identification details directly with the official land registry extract to confirm absolute ownership.
- Checking for co-owners, minor heirs, or undisclosed third parties with legal interests in the property.
3. Power of Attorney (PoA) Scrutiny
- When a transaction is conducted via a representative, the legal team must verify the validity, scope, and authenticity of the PoA.
- Verification ensures the PoA explicitly grants the power to sell real estate, sign transfer contracts, and optionally collect funds, and confirms it has not been revoked or expired.
4. Encumbrance and Litigation Checks
- Determining whether the seller is subject to personal insolvency, tax liens, criminal asset-freezing orders, or active legal claims that could impair the property title.
5. Marital Property Consent
- In jurisdictions where property acquired during marriage is deemed joint marital property, verifying the marital status of the seller and obtaining formal notarized spousal consent is mandatory to prevent subsequent annulment claims.
Georgian context
In Georgia, seller verification relies heavily on the National Agency of Public Registry (NAPR) under the Ministry of Justice. Real-time updates in the public land register allow buyers to instantly cross-reference a seller's Personal Identification Code (for individuals) or Identification Code (for legal entities) against the property's cadastral record.
When buying from a foreign seller acting via a Power of Attorney (PoA), the PoA must be notarized and either apostilled or consular-legalized, then officially translated into Georgian. If issued locally, the PoA can be instantly verified through the digital database of the Georgian Notary Chamber using a unique registration code. Under Article 1158 of the Civil Code of Georgia, property acquired during marriage constitutes joint marital property, requiring formal spousal consent or verification of sole ownership status before registration at NAPR. For developer purchases, verification includes confirming corporate registration, director authority, and compliance with the mandatory 18% VAT inclusion in the public purchase price.
Real example
An international investor negotiated the purchase of an apartment in Tbilisi. The seller resided abroad and delegated the sale to a local agent via a foreign Power of Attorney. During seller verification, the buyer's legal counsel checked the NAPR registry using the property's cadastral code and pulled a fresh extract. The lawyer verified the foreign PoA's apostille status and cross-checked the agent's identity against the notarized authorization. Counsel also identified that the seller acquired the property while married, requiring a notarized spousal consent statement from abroad. By verifying these elements before transferring funds, the buyer eliminated the risk of a voided contract or future spousal title claims.
Common mistakes
- ×Relying on outdated NAPR registry extracts instead of pulling a real-time extract on the date of transaction.
- ×Accepting a Power of Attorney without checking its registration status in the Georgian Notary Chamber database or verifying apostille requirements.
- ×Failing to obtain notarized spousal consent for property acquired during marriage.
- ×Assuming real estate agent assurances substitute for official legal verification of seller identity and corporate authority.
- ×Omitting tax registration and corporate status checks when buying from a developer or corporate entity.
Frequently asked questions
How do you verify a property seller's identity in Georgia?
Seller verification in Georgia involves pulling an official, real-time extract from the National Agency of Public Registry (NAPR) using the property's cadastral code. The personal identification code or corporate ID on the extract must match the seller's passport or company registry details exactly.
Is a Power of Attorney safe to use when buying property in Georgia?
Yes, provided it is properly verified. Georgian notarized PoAs can be cross-checked in the digital database of the Georgian Notary Chamber. Foreign PoAs must be apostilled or consular-legalized, legally translated into Georgian, and explicitly state authorization to sell the specific property and handle funds.
Is spousal consent required to sell real estate in Georgia?
Yes. Under the Civil Code of Georgia, real estate acquired during marriage is generally considered joint marital property regardless of whose name appears on the NAPR extract. Selling requires formal notarized consent from the spouse or proof that the property was acquired prior to marriage, inherited, or gifted.
How do I verify a corporate developer selling real estate in Georgia?
For corporate sellers, you must obtain an extract from the Register of Entrepreneurial and Non-entrepreneurial Entities. This confirms company standing, current directors, and signing authority. It is also necessary to confirm that the advertised price includes the mandatory 18% VAT.
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