Law of Georgia on Recognition of Property Rights of the Parcels of Land Possessed (Used) by Natural Persons and Legal Entities under Private Law

THE LAW OF GEORGIA

ON RECOGNITION OF PROPERTY RIGHTS OF THE PARCELS OF LAND POSSESSED (USED) BY NATURAL PERSONS AND LEGAL ENTITIES UNDER PRIVATE LAW

Chapter I - General Provisions

Article 1 - Purpose of the Law

The purpose of this Law shall be, by recognising the property rights ('recognition of property rights'), to use state-owned land resources in lawful possession (use), as well as state-owned land squatted by natural persons, legal entities under private law, or any other organisational structures provided for by law, and to facilitate land market development.

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Article 2 - Definition of terms

The terms used in this Law shall have the following meanings:

a) lawfully possessed (used) land - a state-owned agricultural or non-agricultural parcel of land with or without fixed structures built upon it (built, under construction, or destroyed) for which a natural person or a legal entity under private law, or any other organisational structure provided for by law had acquired the right to lawful possession (of parcels of land or structures) before this Law entered into force, as well as land squatted before 1994, and registered in a technical inventory archive;

b) (deleted)

c) squatted land – a squatted state-owned agricultural or non-agricultural parcel of land with a residential house (built or destroyed) or a non-residential building (built) built upon it before entry into force of this Law, as well as a squatted parcel of land (with or without fixed structures built upon it) adjacent to and smaller in area than a parcel of land owned or lawfully possessed by an interested natural person, as well as, a squatted parcel of land with non-residential buildings (built) built upon it adjacent to and smaller in area than a parcel of land owned or lawfully possessed by a legal entity under private law, and which, at the moment of requesting recognition of the property right is not disposed of by the State, except for the cases provided for in paragraph (a) of this article;

d) recognition of property rights - a non-gratuitous or gratuitous transfer of property rights on a state-owned agricultural or non-agricultural parcel of land with or without fixed structures built upon it (built, under construction, or destroyed) to a natural person or a legal entity under private law, or any other organisational structure provided for by Law, according to the terms and the procedure defined by the Procedure for Recognition of Property Right on Parcels of Land Possessed (Used) by Natural Persons and Legal Entities Under Private Law, approved by this Law and an ordinance of the Government of Georgia;

e) interested person - a natural person, as well as his/her heir presumptive or successor who lawfully possesses (uses) or has squatted a state-owned agricultural or non-agricultural parcel of land with a residential house (built or destroyed) or a non-residential building (built) built upon it, as well as a legal entity under public law that has squatted a parcel of land with non-residential buildings (built) built upon it adjacent to a parcel of land owned or lawfully possessed by it, as well as a legal entity under private law or any other organisational structure provided for by law, or its successor that lawfully possesses (uses) a parcel of agricultural or non-agricultural land with or without fixed structures built upon it (built or destroyed) and which intends, to acquire the ownership right to it, as provided for by this Law, as well as a natural person or a legal entity under private law or any other organisational structure which has purchased/acquired the property right on fixed structures built upon this parcel of land from the user of the state-owned agricultural or non-agricultural parcel of land, according to the legislation of Georgia;

f) building - a structural system constructed of building materials and other wares which is firmly fixed to the ground, creates a covered space and is enclosed by walls, columns and/or other enclosing structures, except for a temporary building;

g) temporary building – a modular demountable and/or portable building attached to the ground by its own weight and/or a dry non-monolithic anchorage, which has no underground storage.

Law of Georgia No 5673 of 28 December 2007 - LHG I, No 50, 29.12.2007, Art. 443

Law of Georgia No 386 of 23 October 2008 - LHG I, No 29, 4.11.2008, Art. 173

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 2463 of 25 December 2009 - LHG I, No 50, 31.12.2009, Art. 404

Law of Georgia No 1248 of 20 September 2013 - website, 8.10.2013

Article 3 - Scope of the Law

1. This Law determines basic terms and conditions of recognition of property rights to lawfully possessed (used), as well as squatted land and the scope of authority of the bodies which represent the state in the process of recognition of the property rights.

1¹. In a case, when a competent state body has alienated only a significant component part of a parcel of land and, based on the requirements of this Law, the property right to the parcel of land cannot be recognised, a property manager provided for by the Law of Georgia on the State Property, shall determine the parcel of land with the property right on the significant component part of a parcel of land.

2. The property right to the following squatted state-owned agricultural or non-agricultural lands shall not be subject to recognition:

a) stock routes;

b) land of the state water fund, except for parcels of land, ownership to which may be transferred and which may be used according to the requirements of the Law of Georgia on Water;

c) land of state industrial forest fund, except for parcels of land sqautted by natural persons or legal entities under private law or any other organisational structure provided for by law and ownership to which may be transferred based on the conclusion of a body authorised to manage the state forest fund and which may be excluded from the state forest fund without disturbing the management and protection of the state forest fund;

d) protected areas (territories), except for protected landscapes and multiple use areas (territories);

e) recreational parks, woodland parks, public gardens and other areas, except for areas having the status of resorts of Georgia, resort places, alpine skiing centres, and a Recreation Area of the Black Sea Coast determined by ordinance of the Government of Georgia;

f) historical, cultural, natural and religious monuments;

g) parcels of land of public use (squares, streets, passages, roads, pavements, embankment), recreational places (parks, woodland parks, public gardens, allées), dendrological parks and botanical gardens;

h) lands where a water reservoir, a hydro technical structure, and sanitary protection zones of these facilities are located;

i) lands where public infrastructure facilities (transport and underground communications, water supply, sewage, telecommunication and electric wiring) are located;

j) special purpose parcels of land (intended for defence and defence mobilisation);

k) parcels of land occupied by state-owned facilities, including parcels of land with state property not subject to privatisation, according to the Law of Georgia on State Property;

l) cemeteries and pantheons;

m) sanitary and protection zones;

n) lands intended for construction and operation of oil and gas main pipelines and associated underground and aboveground facilities.

3. On the territory of the city of Tbilisi, squatted state-owned agricultural or non-agricultural land within the main pipeline protection zones III and IV, defined by an ordinance of the Government of Georgia, shall be subject to the recognition of the property rights.

4. In the case provided for by the Law of Georgia on the Special Procedure for Systematic and Sporadic Registration of Rights to Plots of Land and the Improvement of Cadastral Data within the Framework of the State Project, registration (systemic registration) of property rights, within the framework of the state project, to lawfully possessed (used) as well as squatted land, and changes in the registered data shall be performed according to the Law of Georgia on the Special Procedure for Systematic and Sporadic Registration of Rights to Plots of Land and the Improvement of Cadastral Data within the Framework of the State Project, this Law and normative acts issued under this Law.

Law of Georgia No 5993 of 21 March 2008 - LHG I, No 6, 25.3.2008, Art. 26

Law of Georgia No 88 of 27 June 2008- LHG I, No 12, 14.7.2008, Art. 100

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 1941 of 3 November 2009 - LHG I, No 35, 19.11.2009, Art. 246

Law of Georgia No 2887 of 8 April 2010 - LHG I, No 21, 22.4.2010, Art. 117

Law of Georgia No 3517 of 21 July 2010 - LHG I, No 48, 9.8.2010, Art. 318

Law of Georgia No 3889 of 7 December 2010 - LHG I, No 67, 9.12.2010, Art. 417

Law of Georgia No 6379 of 5 June 2012 - website, 15.6.2012

Law of Georgia No 1248 of 20 September 2013 - website, 8.10.2013

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Article 4 - Body authorised to recognise the property right to squatted land

1. The commission for recognition of the property right to squatted land existing under the executive body of a respective municipality (at the Tbilisi municipality – under the Mayor of Tbilisi), which exercises its functions according to the procedure established under formal administrative proceedings defined in Chapter VIII of the General Administrative Code of Georgia and this Law, shall be authorised to recognise the property right to squatted land.

1¹. The Government of Georgia may specify other body that is authorised to recognise the property right on squatted land located on the territories, which according to an ordinance of the Government of Georgia, have the status of resorts, resort places, skiing centres and a Recreation Area of the Black Sea Coast.

1²) Authority of the commission for recognition of the property right to squatted land under this article and Article 6 of this Law shall be the powers delegated by the state to a municipality. Supervision according to industry sectors over exercising of the powers shall be conducted by the Ministry of Economy and Sustainable Development of Georgia under the procedure established by the Organic Law of Georgia the Local Self-government Code.

2. The legal basis for setting up the commission and specifying its activity shall be determined according to the procedure for recognising property rights to parcels of land possessed (used) by natural persons and legal entities under private law, approved by ordinance of the Government of Georgia.

3. Members of the commission for recognition of the property right to squatted land shall not be remunerated for serving on the commission. This restriction shall not apply to members of the commission for recognition of the property right to squatted land existing under the Mayor of Tbilisi municipality. The activity of these members may be financed from the funds allocated for exercising the delegated powers in the amount and according to the procedure determined by the Sakrebulo of Tbilisi municipality.

Law of Georgia No 5673 of 28 December 2007 - LHG I, No 50, 29.12.2007, Art. 443

Law of Georgia No 5993 of 21 March 2008 - LHG I, No 6, 25.3.2008, Art. 26

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 1134 of 27 March 2009 - LHG I, No 9, 13.4.2009, Art. 34

Law of Georgia No 3513 of 21 July 2010 - LHG I, No 48, 9.8.2010, Art. 314

Law of Georgia No 4966 of 24 June 2011 - website, 11.7.2011

Law of Georgia No 1248 of 20 September 2013 - website, 8.10.2013

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Article 4¹ - Body authorised to recognise the property right to lawfully possessed (used) land

1. A legal entity under public law - the National Agency of Public Registry under the governance of the Ministry for Justice of Georgia ('the Agency'), shall be authorised to recognise the property right to lawfully possessed (used) land that shall exercise its authority according to the procedure determined by the law.

2. The recognition of the property right to lawfully possessed (used) land shall be exercised through registering the right of a lawful possessor (user) in the Registry of Rights on Immovable Property.

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Chapter II - The Procedure for Recognising the Property Right to Lawfully Possessed (Used) Land, as well as on Squatted Land

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Article 5 - The procedure for recognising the property right to lawfully possessed (used) land

1. A request for recognition of property right to lawfully possessed (used) land shall be reviewed based upon a written application submitted to the Agency by an interested person.

2. To confirm a request to have the property right to lawfully possessed (used) land recognised, an interested person shall submit:

a) a document confirming lawful possession (use) of land;

b) a cadastral surveying/measurement plan of the parcel of land;

c) a document confirming that a fee for the recognition of the property right has been paid;

d) identity documents of the interested person;

e) other documents provided for by the legislation of Georgia.

3. The recognition of the property right on lawfully possessed (used) land shall be exercised according to the procedure and within the terms determined by the law.

Law of Georgia No 5673 of 28 December 2007 - LHG I, No 50, 29.12.2007, Art. 443

Law of Georgia No 386 of 23 October 2008 - LHG I, No 29, 4.11.2008, Art. 173

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Article 5¹ - The procedure for recognising the property right on squatted land

1. A request for recognition of the property right on squatted land shall be reviewed based upon a written application submitted to the Commission by an interested person.

2. When reviewing the request for recognition of the property right to squatted land, the compliance of the request with the conditions of spatial planning and territorial management, and land management strategic plan shall be taken into account.

3. Unless otherwise provided for by law, to obtain confirmation of an application for recognition of the property right to squatted land, an interested person shall submit:

a) a document confirming squatting of land and/or a witness testimony;

b) a cadastral surveying/measurement plan of the parcel of land, and in the cases provided for in Article 3(3) of this Law - cadastral measurement plan of the parcel of land showing the location of a main pipeline and the distance between the main pipeline and the parcel of land;

c) information necessary to define the amount of fees payable for recognition of the property right;

d) copies of identity documents of the interested person.

4. Unless otherwise provided for by law, the commission shall review an application of the interested person within two months after it has been received. If more than two months are required for determining circumstances of significant importance for the property right, the commission shall be authorised to prolong the period of reviewing the application by not more than six months.

5. If the request of an interested person for recognition of the property right to squatted land fully or partially satisfies the conditions defined by this Law, and the commission makes a positive decision, it shall send to the interested person a written notice of the amount and the obligation of paying a fee in full for recognition of the property right. If the interested person pays the fee for recognition of the property right in the amount indicated in the written notice, the commission shall issue a certificate of the property right and an approved cadastral surveying/measurement plan, which in addition to other cadastral data should indicate the borders and the area of the parcel of land to which the property right has been recognised and any building located on it.

6. The procedure for issuing an inheritance certificate for an heir presumptive after issuing a certificate of the property right shall be determined by the legislation of Georgia.

7. If the request of an interested person for recognition of the property right to squatted land does not satisfy provisions of this Law, or the attached documents do not confirm the fact of squatting, the commission shall make a written decision refusing to recognise the property right.

8. If the commission does not make a decision to recognise or refuse to recognise the property right within the time limit defined by this Law, it shall be considered as a refusal to recognise the property right on land and may be appealed according to the procedure provided for by the legislation of Georgia.

9. The commission shall issue an individual administrative-legal act – a decree with regard to its authority-related issue.

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 2463 of 25 December 2009 - LHG I, No 50, 31.12.2009, Art. 404

Law of Georgia No 2887 of 8 April 2010 - LHG I, No 21, 22.4.2010, Art. 117

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Article 6 - The amount and procedure for payment fees payable for recognition of the property right

1. Lawfully possessed (used) land shall be transferred to an interested natural person free of charge, except for cases in which the lawful possession (usage) of land is determined based on documents confirming the privatisation of buildings and structures located on the land.

2. For legal entities under private law, as well as in the cases defined in the first paragraph of this article, a fee payable for recognition of the property right, shall be five times the amount of the annual rate of property tax determined by a decision of a representative body of local self-government according to the Tax Code of Georgia at the time of filing a request to have the property right recognised per one square metre of lawfully possessed (used) non-agricultural land; and five times the amount of the annual rate of land tax determined by the Tax Code of Georgia at the time of filing a request to have the property right recognised per one hectare of lawfully possessed (used) agricultural land.

3. A fee payable for the recognition of the ownership right to squatted land shall be:

a) for a legal entity under private law: a currently applicable normative price on such land at the time of filing a request to have the property right recognised per one square metre of non-agricultural land; and 100 times the amount of the annual rate of land tax determined by the Government of Georgia at the time of filing a request to have the property right recognised per one hectare of agricultural land;

b) for a natural person: 10 times the amount of the annual rate of land tax determined by the Tax Code of Georgia at the time of filing a request to have the property right recognised per one hectare of agricultural land; and 20 times the amount of the annual rate of land tax determined by the Tax Code of Georgia at the time of filing a request to have the property right recognised per one square metre of non-agricultural land. However, if 20 times the amount of annual rate of land tax exceeds the current applicable normative price for one square metre of land, the fee payable for the recognition of the property right shall be the currently applicable normative price on such land at the time of filing a request to have the property right recognised per one square metre of squatted land.

3¹. Deleted

3². A fee payable for recognition of the property right to squatted land may be determined based on the normative price on the land, according to the procedure and in the cases determined by the Government of Georgia.

4. A fee payable for the recognition of the property right must be paid in full.

4¹) In the case provided for by the Law of Georgia on the Special Procedure for Systematic and Sporadic Registration of Rights to Plots of Land and the Improvement of Cadastral Data within the Framework of the State Project, recognition of the property right to land shall be performed without payment of the fee under this article.

5. The Government of Georgia may determine cases when the recognition of the property right on squatted land is exempt from fee.

Law of Georgia No 5673 of 28 December 2007 - LHG I, No 50, 29.12.2007, Art. 443

Law of Georgia No 386 of 23 October 2008 - LHG I, No 29, 4.11.2008, Art. 173

Law of Georgia No 614 of 5 December 2008 - LHG I, No 36, 12.12.2008, Art. 233

Law of Georgia No 2463 of 25 December 2009 - LHG I, No 50, 31.12.2009, Art. 404

Law of Georgia No 3596 of 17 September 2010 - LHG I, No 54, 12.10.2010, Art. 348

Law of Georgia No 3889 of 7 December 2010 - LHG I, No 67, 9.12.2010, Art. 417

Law of Georgia No 4966 of 24 June 2011 - website, 11.7.2011

Law of Georgia No 1248 of 20 September 2013 - website, 8.10.2013

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Chapter III - Transitional and Final Provisions

Article 7 - Transitional provisions

The President of Georgia shall develop and approve, before 15 September 2007, the following:

a) the Procedure for Recognition of the Property Right to Parcels of Land Possessed (Used) by Natural Persons and Legal Entities under Private Law

b) a form of the certificate of property right.

Article 7¹ - The procedure for transferring land squatted by rural households (families) in Kobuleti and Khelvachauri Municipalities to household ownership

In Kobuleti and Khelvachauri Municipalities of the Ajara Autonomous Republic, up to 0.30 hectares of parcels of agricultural land, squatted by rural households (families) before the entering into force of this Law, in line with lawfully possessed parcels of land, shall be transferred free of charge to the ownership of those rural households (families), to whose ownership no parcels of land have been transferred in accordance with the procedure determined by the legislation of Georgia.

Law of Georgia No 5673 of 28 December 2007 - LHG I, No 50, 29.12.2007, Art. 443

Article 7² - The procedure for transferring the land to the ownership of households (families) settled in the territory of Tsalka Municipality and squatted by these households (families)

From 0.30 hectares up to 1 hectare of parcels of land, according to the place of residence, within the borders of the local administrative unit, shall be transferred free of charge to the ownership of those rural households (families) that settled in the territory of Tsalka Municipality as of 1 June 2009, to whose ownership no parcels of land within Tsalka Municipality have been transferred in accordance with the procedure determined by the legislation of Georgia, and/or that have squatted parcels of state-owned agricultural land.

Law of Georgia No 5993 of 21 March 2008 - LHG I, No 6, 25.3.2008, Art. 26

Law of Georgia No 1565 of 31 July 2009 - LHG I, No 24, 13.8.2009, Art. 145

Article 7³ - Additional provisions for recognition of property right to land lawfully possessed (used) by legal entities under private law

1. From 1 July 2011, the fee payable for the recognition of the property right to land lawfully possessed (used) by a legal entity under private law shall be equated to the fee payable for recognition of the property right to land squatted by a legal entity under private law.

2. It shall be unacceptable for a legal entity under private law to alienate or mortgage an immovable thing, as well as to levy a recognised property right to satisfy tax liabilities within six months after the registration of the property right, except for the case provided for in the third paragraph of this Article.

3. The restriction provided for in the second paragraph of this Article may be lifted by decision of a commission at the registration authority headed by the chairperson of the agency. The commission shall make a decision based on an application of the interested person, the state or public interest, as well as on the function of the immovable thing.

Law of Georgia No 3889 of 7 December 2010 - LHG I, No 67, 9.12.2010, Art. 417

Article 7⁴ - Time limit for the recognition of the property right on land lawfully possessed (used) by legal entities under private law

From 1 January 2012, legal persons under private law shall lose the right to have the property right to lawfully possessed (used), as well as to squatted land recognised. After the above time limit, the property right may be acquired according to the general procedure determined for privatising state property.

Law of Georgia No 3889 of 7 December 2010 - LHG I, No 67, 9.12.2010, Art. 417

Article 7⁵ - Normative acts to be adopted by the Government of Georgia

1. The Government of Georgia shall adopt, before 1 April 2014, the following ordinances:

a) On the Procedure for Recognition of Property Right on Parcels of Land Lawfully Possessed (Used) by Natural Persons and Legal Entities Under Private Law and Approval of the Form of Property Right Certificate;

b) On Granting the Status of a Recreation Area to Georgian Resorts, Resort Places, Skiing Centres and the Black Sea Areas and Approving their Borders;

c) On the Procedure for Protection of Main Pipelines (Petroleum, Petroleum Products, Petroleum By-products and Natural Gas and their Transformation Products) and Determining their Protection Zones.

2. The normative acts of the President of Georgia listed below shall remain in legal force until the Government of Georgia adopts the normative acts provided for in the first paragraph of this Article:

a) Order No 525 of 15 September 2007 of the President of Georgia on the Procedure for Recognition of Property Right on Parcels of Land Possessed (Used) by Natural Persons and Legal Entities Under Private Law and Approval of the Form of Property Right Certificate;

b) Order No 968 of 29 November 2005 of the President of Georgia on Granting the Status of a Recreation Area to Georgian Resorts, Resort Places, Skiing Centres and the Black Sea Areas and Approving their Borders;

c) Order No 963 of 27 December 2009 of the President of Georgia on the Procedure for Protection of Main Pipelines (Petroleum, Petroleum Products, Petroleum By-products and Natural Gas and their Transformation Products) and Determining their Protection Zones.

Law of Georgia No 1248 of 20 September 2013 - website, 8.10.2013

Article 7⁶ – Legal succession for the commission for recognition of the property right to squatted land

1. The commission for recognition of the property right to squatted land established under the executive body of a municipality (at the Tbilisi municipality – under the Mayor of Tbilisi) shall be the legal successor of the commission for recognition of the property right to squatted land existing under the representative body of a respective municipality before the entry of this article into force.

2. Commissions for recognition of the property right to squatted land established under the executive bodies of municipalities (at the Tbilisi municipality – under the Mayor of Tbilisi) shall continue and/or complete administrative proceedings on applications filed according to the procedure effective before the entry of this article into force under the procedure effective before the entry of this article into force, unless otherwise provided for by this Law.

Law of Georgia No 5157 of 3 June 2016 - website, 17.6.2016

Article 8 - Invalid normative act

Upon entering into force of the Order of the President of Georgia on the Procedure for Recognition of Property Right on Parcels of Land Possessed (Used) by Natural Persons and Legal Entities Under Private Law, the Law of Georgia on Declaring Private Ownership of Non-agricultural Land Used by Natural Persons and Legal Entities under Private Law (Legislative Herald of Georgia, No 4, 1998, Art. 33) shall be declared invalid.

Article 9 - Final provisions

1. This Law, except for Articles 1 - 6 and 8, shall enter into force upon its promulgation.

2. Articles 1 - 6 and 8 of this Law shall enter into force upon entering into force of the Order of the President of Georgia on Approval of the Procedure for Recognition of Property Right on Parcels of Land Possessed (Used) by Natural Persons and Legal Entities under Private Law.

President of Georgia                                                                                                                                  M. Saakashvili

Tbilisi

11 July 2007

No 5274 – ES