About Mortgage Law in Tbilisi, Georgia
The Mortgage Law in Tbilisi, Georgia is directed by the Civil Code of Georgia and the Law of Georgia on Mortgage. These legislations provide the legal basis for the contractual agreement between a lender and a borrower. In this agreement, the borrower (mortgagor) pledges an immovable property (such as land or real estate) as security or collateral to the lender (mortgagee) for a mortgage loan.
Why You May Need a Lawyer
Despite the straightforward nature of the arrangement, many situations can arise which necessitate the assistance of a legal professional. These can include understanding the intricacies of the mortgage contract, managing disputes related to the mortgage loan, handling foreclosure proceedings or interpreting regulations associated with the mortgage law.
Local Laws Overview
According to Georgian law, a mortgage contract should be made in written form and must be notarized. Non-compliance with these requirements makes the contract invalid. The Law of Georgia on Mortgage establishes that a mortgage over a real property may secure one or several obligations. If not otherwise agreed between the parties, the mortgage collateral is sold in the event of non-fulfillment of the obligation by the obligor. Proceeds from the collateral sale are used to satisfy the right of the mortgagee.
Frequently Asked Questions
What happens if I default on my mortgage payments?
If you default on your mortgage payments, the lender can initiate a foreclosure process to recover the debt. It is best to engage a lawyer in such situations to help you navigate through the complexities of the process and explore potential solutions.
Can I refinance my mortgage?
Yes, according to Georgian law, you can refinance your mortgage. This can be subject to various factors including your credit score, outstanding debt, and the current market conditions. Legal advice can be beneficial in understanding this process and its implications.
Can a lender change the interest rate on my mortgage?
The terms of the interest rate should be specified within your mortgage contract. Unless you have agreed to an adjustable-rate mortgage (ARM), the lender typically isn't allowed to change your rate.
Do I have to insure my property?
Usually, mortgage lenders require borrowers to insure their property to protect their investment. The specifics of such requirements are generally outlined within your contract.
Can I pay off my mortgage ahead of schedule?
Yes, Georgian law doesn't prohibit early repayment of your mortgage. Be sure to consult with a lawyer to understand any potential fees or penalties associated with this.
Additional Resources
You can consult with the National Agency of Public Registry or the Ministry of Justice of Georgia for additional information on real estate and mortgage laws in Georgia. Legal service providers, such as law firms or legal aid organizations, can also be helpful resources.
Next Steps
If you need legal assistance in matters related to mortgage in Tbilisi, consider consulting with a local attorney specializing in real estate and property law. They can provide knowledgeable advice, represent you in any negotiations or proceedings, and help ensure your rights and interests are protected.
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