Risk Information on Real Estate Acquisition in Georgia

The acquisition of real estate, especially abroad, involves both opportunities and risks. Property prices, rental income, resale values, construction timelines, legal frameworks and economic developments may change.

Rebuildv provides information, coordination and brokerage services, but does not guarantee increases in value, returns, resale opportunities or the economic development of any property.

This risk information does not replace individual legal, tax, financial or technical construction advice. Customers should consult independent advisers before making a purchase decision where necessary.

Information on prices, possible rental income, expected returns, market opportunities or resale possibilities is provided for general orientation only. It does not constitute investment advice, financial advice or a binding recommendation.

Forecasts, ROI calculations, sample calculations and other economic assessments are based on assumptions, experience and information from third parties. Actual results may differ significantly.

No specific return, increase in value, rentability, occupancy rate, saleability or resale price is guaranteed.

Property prices may rise, stagnate or fall. Their development depends, among other things, on supply and demand, economic conditions, infrastructure, regulation, construction quality, location, currency, interest rates and the local real estate market.

A later sale may be more difficult, take more time or only be possible at a lower price than expected.

Off-plan projects or properties that have not yet been completed involve particular risks. These include in particular:

• – construction delays
• – changes to planning, equipment or floor plans
• – cost increases
• – quality defects
• – insolvency or performance problems of the developer
• – delays in acceptance, handover or registration
• – deviations between visualizations, planning documents and actual execution
• – uncertainties or differing expectations regarding agreed completion or fit-out stages

Stated completion dates are forecasts unless expressly guaranteed by contract and may change.

Where certain completion or fit-out stages are agreed, e.g. Black Frame, White Frame, Green Frame, turnkey or fully furnished, the exact scope of services, material quality, equipment and delivery scope are determined exclusively by the written specifications in the relevant purchase agreement, preliminary agreement or specification catalogue.

Local designations or market terms may differ from the customer’s expectations. Deviations in standard, fit-out level or delivery scope do not constitute a defect if the contractually agreed specifications are fulfilled.

The acquisition of real estate in Georgia is subject to the applicable formal and registration requirements. Ownership, preliminary registrations, payment plans, preliminary agreements and final purchase agreements are governed by the specific contractual documents and registration with the competent authorities.

Registration with the National Agency of Public Registry (NAPR) or through the Public Service Hall confirms the legal transfer of ownership, preliminary registration or other registrable legal position. However, it generally does not include a substantive, construction-related, tax or economic review of the contractual terms in favor of the buyer.

Customers should carefully review contractual documents and, where necessary, seek independent legal, tax or construction-related advice.

Where Rebuildv brokers properties from third-party sellers, developers or project developers, Rebuildv does not become a party to the real estate purchase agreement.

The respective seller, developer or project developer is responsible for construction performance, completion, defects, handover, registration and other obligations.

Rebuildv is not liable for breaches of duty by independent third parties unless Rebuildv is responsible for them.

If payments are made in different currencies or the customer transfers funds from abroad, exchange rate fluctuations between GEL, USD, EUR or other currencies, bank fees, payment service provider fees and payment delays may occur.

Exchange rate changes may positively or negatively affect the actual purchase price, ongoing costs, rental income, return calculations and a later resale proceeds from the customer’s perspective.

In the case of installment payments, payment default may trigger additional costs, contractual penalties, default consequences or, in individual cases, withdrawal from the contract, provided this has been contractually agreed and is legally permissible.

The acquisition, registration, use, rental and later sale of real estate in Georgia are generally subject to Georgian law and may trigger Georgian tax consequences.

Depending on residence, nationality, tax residency, use of the property, rental, resale and personal circumstances, additional tax obligations may arise abroad.

Rebuildv does not provide tax advice or independent legal advice. Customers should clarify tax and legal questions with qualified advisers.

Rental income is not guaranteed. Vacancy, seasonal fluctuations, rental defaults, maintenance costs, management fees, repairs, ancillary costs and changes in demand may affect profitability.

Even in attractive locations, there is no guarantee that a property can be rented at any time, that a certain occupancy rate will be achieved or that certain rental income will be generated.

Short-term rentals, holiday rentals and other tourist uses may be subject to seasonal demand fluctuations, platform terms, local administrative requirements and future regulatory changes.

Real estate cannot always be sold quickly at short notice. A sale may take time and cause additional costs.

In certain market phases, a sale may only be possible with price reductions or may not be possible within the desired timeframe.

Political, economic or regulatory developments in Georgia or internationally may affect property prices, demand, rentability, construction costs, financing options, payment transactions, taxes, legal frameworks and resale opportunities.

This may include, in particular, changes in laws, taxes, fees, registration practice, building regulations, capital movements, sanctions, banking practice, inflation, interest rates, economic crises or regional geopolitical developments.

Such developments cannot be predicted and are outside Rebuildv’s sphere of influence.

When acquiring real estate in Georgia, country-specific particularities may exist that customers should consider before making a purchase decision.

Land categories: Under the current legal situation, foreign citizens can generally acquire only non-agricultural land or real estate built on such land. Agricultural land may be subject to special acquisition restrictions.

Infrastructure and connections: Development and final connection to public utility networks, in particular electricity, water, gas, sewage and internet, are the responsibility of local utility providers, authorities or the respective developer and may be subject to delays, technical requirements or additional costs.

Management and operating costs: Ongoing fees (maintenance fees) may apply for the maintenance, management, cleaning, security, technical support and other operation of common areas in residential, apartment or hotel complexes. These may be determined by developers, homeowners’ associations or external management companies and may change over time.

Local regulation: Local or municipal requirements, administrative practice, permits or usage rules may change and may affect the use, rental, conversion, management or operation of a property.

Local administrative practice: Administrative processes, processing times, registration procedures, translation requirements and notarial or administrative requirements may differ from expectations in other countries and may change.

All information on properties, projects, prices, areas, equipment, completion dates, payment plans, ancillary costs, possible rental income, ROI calculations and other economic figures is provided to the best of our knowledge, but without guarantee of completeness, accuracy or current validity.

Price, area, equipment, ROI and other project information is non-binding and may change at any time, in particular due to decisions by the seller, developer or project developer, construction progress, market conditions, exchange rates, official requirements or technical adjustments.

Displayed ROI figures, return examples, rental forecasts or value increase scenarios do not constitute a guarantee of future income. Actual income, costs, value development and sale proceeds may differ significantly.

Visualizations, renderings, floor plans, illustrations, furnishing examples, equipment images and other representations are for illustrative purposes only. The actual finished product may differ, in particular with regard to size, layout, equipment, materials, view, surroundings, common areas and technical execution.

Price information may be subject to exchange rate fluctuations. Prior sale, errors, corrections and changes are reserved.

When acquiring real estate abroad, additional risks may arise due to language, local administrative practice, different legal concepts, translations, official procedures, banking processes and international communication.

Rebuildv provides organizational and coordination support, but cannot guarantee that all external processes will proceed without delay or additional effort.

The decision to acquire real estate is made by the customer independently.

The customer should invest only if they have understood the essential legal, economic and practical risks and are able to bear the financial consequences.