HOW TO BUY A PROPERTY?
CONTACT POINT FOR POTENTIAL INVESTORS
Information on properties for sale can be obtained at the Ministry of Finance and Economy of Ajara A.R. By exploring web-pages www.mofea.ge and www.investinbatumi.ge, interested individuals will be able to find information regarding properties for sale.
The Ministry offers various types of properties for Greenfield Investments (lands) and Brownfield Investments (lands with buildings) for development of different kinds of businesses, such as:
- Tourism (Recreational Resorts, Ski Resorts, Hotels, Hostels, Restaurants, Cafes etc.)
- Construction & Real Estate (Constructing of Residential, Business, Commercial Areas etc.)
- Agriculture (Greenhouse Farming, Citrus & Fruit Farming, Animal Farming, Vinery, Tobacco Products etc.)
- Gambling (Casinos, Slot Machines etc.)
- Manufacturing (Textile & Leather, Wood processing, Food & Beverages, Plastics, Metal & Non-metallic Products etc.)
- Regional and Global Logistic Services
- Other sectors
After the decision is made on particular property, application can be filled out at the Ministry where qualified and multilingual personnel will help you in choosing relevant property to your business initiative.
THE APPLICATION FORM SHOULD INCLUDE THE FOLLOWING:
- Information about the applicant (In case of physical person: Name, address, identification number and contact details. As for legal entity: Name of the company and its director, identification code of the company.)
- Land cadastral code (e.g. 05.01.06.010)
- Applicant proposal: what kind of economic activity will be undertaken on the purchased land, amount of planned investment, number of local people employed and timing (approximate date when the company will start operating).
WHO CAN APPLY AND HOW LONG DOES IT TAKE TO PURCHASE A STATE-OWNED PROPERTY?
N.B. Any interested person can apply for buying a state-owned property in Ajara. There is no distinction between Georgian citizen and a foreigner. A foreign investor goes through the same procedures as Georgian citizen when buying a state-owned property in Ajara.
TYPES OF SELLING METHOD UTILIZED BY THE MINISTRY
In compliance with the Law on Privatization of State Property there are 3 forms of the privatization:
- Direct Selling
- Direct Selling on the basis of competitive selection
The buyer of the property may be a foreign citizen or a legal person or association of persons, whose property to the state or local governing body is less than 25%. But in the case of agricultural land privatization the buyer can be a citizen of Georgia or a private legal entity registered in Georgia.
The process of property privatization, leasing and transferring the rights are conducted by the Ministry of Finance and Economy of Ajara Autonomous Republic.
The information about bids is published on the web page www.eauction.ge. After privatization the owner of the property can pay a full price or by installments. The winner of the auction is obliged to pay the property price within 7 - 30 calendar days. If the auction is announced with conditions the payment period must not exceed 2 years. In case of privatization by auction without conditions the purchase agreement shall be concluded within 1 month after the auction is held.
- The decision of property direct selling/direct selling on basis of competitive selection and direct form of property leasing/transferring the rights is made by the Chairman of the Government of Ajara A.R. The purchase agreement shall be concluded within 3 months after issuing the act and the winner will pay the price within the period determined by the Chairman of the Government of Ajara A.R.
- In case of direct selling the buyer is obliged to provide a bank guarantee before concluding the purchase agreement and in case of auction with conditions – within 1 month after the auction is held. The bank guarantee must be at least 5% of investment obligations and expiry date must exceed the period of meeting investment obligation by at least 2 months.
- In case of property privatization/leasing/transferring the rights the period of conducting an auction may be minimum 5 and maximum 45 calendar days.
- In case of bids deposit/bank guarantee must not be less than 10% of the initial privatization price. The validity of the bank guarantee must exceed the period of payment obligation by at least 15 calendar days.
- In case of privatization the ownership rights are transferred after concluding a purchase agreement and the registration in the corresponding registering authority.
The property can be leased with terms or without terms, with payment and without payment, with bids or without it.
It is banned to hold a mortgage, a pawn, a servitude on the leased property or conclude any kind of ownership agreement and issue individual administrative-legal act causing the change of the owner if the law does not envisage anything else.
The receiver (physical or legal entity) of the leased property with the payment obligation must pay leasing price and provide its care of during the lease time.
The transferring the property to physical or legal entities with payment or without it and without the conducting the auction is possible only after the decision of the Chairman of the Government of Ajara A.R.
The bank guarantee/deposit must equal lease price of 3 month period in case of property leasing and if the property is leased within the period - less than 6 months - 30% of initial price must be paid. The validity of the bank guarantee/deposit must exceed the period of leasing time at least 7 calendar days.