Developer missed the completion date: what to do under Georgian law

What to do

1. Find the handover date and the penalty clause in the contract. Delay is non-performance within the set period (Civil Code, Art. 400). There is no delay if the cause does not depend on the developer's fault (Civil Code, Art. 401). The limitation period for property claims is 6 years (Civil Code, Art. 129).
2. Claims for the flat: a penalty (პირგასამტეხლო) exists only by agreement of the parties (Civil Code, Art. 417) and only in writing (Civil Code, Art. 418). A penalty for delay may be claimed together with the handover of the flat (Civil Code, Art. 419). Losses caused by the delay (for example, rent of other housing) are recoverable (Civil Code, Art. 404), including lost profit (Civil Code, Art. 411), but only foreseeable direct damage (Civil Code, Art. 412).
3. Getting money back: a written claim, then withdrawal from the contract after the additional period set by the buyer has expired (Civil Code, Art. 405). Without such a period, withdrawal is possible if the contract expressly tied its continuation to the deadline, or if the deadline has become pointless (Civil Code, Art. 405). It is not possible for an insignificant breach (Civil Code, Art. 405). Withdrawal is made by notice (Civil Code, Art. 355). The developer returns what was paid (Civil Code, Art. 352), plus damages for non-performance (Civil Code, Art. 407).
4. The developer's objections: where circumstances have changed, the contract should first be adapted by agreement, not extended unilaterally (Civil Code, Art. 398). An unfair standard term (an extension of the deadline without consequences) is void (Civil Code, Art. 346). The court may reduce a disproportionate penalty (Civil Code, Art. 420).
5. Court: the district (city) court. The claim may be secured by attaching the developer's property and funds (Civil Procedure Code, Art. 198). Check the registry extract for the plot (mortgage, repeat sale).
6. Where to apply: the district (city) court; the Public Registry, for an extract.
7. Evidence: the contract (handover date, penalty), payments, notices of postponement, rental agreement and receipts, the claim with proof of dispatch.
8. Pitfalls: there is no 'statutory penalty' for buyers; withdrawal without the required additional period; a supplementary agreement on postponement without a penalty clause; if the developer is already insolvent, a different strategy applies.

Be sure to check

• penalty only under a written contract term; the court may reduce it; it can be claimed together with the handover of the flat
• losses from the delay (rent, lost profit) independently of the penalty
• withdrawal from the contract after an additional period and notice; refund and damages
• the developer's objections (no fault, changed circumstances) and limitation periods