Defects in a new flat from the developer: what to do under Georgian law

What to do

1. First rule out the consumer regime. A flat is not a 'good' within the meaning of the Law of Georgia on the Protection of Consumer Rights, since goods are movable things. The buyer's rights are governed by the Civil Code (Law of Georgia on the Protection of Consumer Rights, Art. 4). The warranty periods and the rules of the consumer-protection law do NOT apply to a flat. Classify the contract (sale of a future flat, or a contract for work) and the period. The limitation period for contractual claims concerning immovable property is 6 years (Civil Code of Georgia, Art. 129), running from when the party learned or should have learned of the breach (Art. 130). Under a contract for work (ნარდობა), defects in the work are subject to a 1-year period, and defects concerning the building to a 5-year period from acceptance (Civil Code of Georgia, Art. 655).
2. Is there a defect? There is no defect if the flat corresponds to the agreed quality (for example, the frame specification); otherwise, a defect exists if the flat is unfit for ordinary use (Civil Code of Georgia, Art. 488). Delivery of a different thing or of a smaller quantity (other windows, smaller area) is equated with a defect (Art. 488). Also check: there are no rights if the buyer knew of the defect when concluding the contract (Art. 494). Where a warranty period is granted, a defect revealed during it is presumed to entitle the buyer to remedies (Art. 496). A contract clause excluding liability is void if the seller deliberately concealed the defect (Art. 497).
3. Acceptance: all defects must be recorded in the handover act or in a written objection. Otherwise, under a contract for work, if you accept the work knowing of a defect and make no claim, you lose the rights to it (Civil Code of Georgia, Art. 652).
4. Order of claims: a written claim listing the defects and setting a deadline. The seller must remedy the defect within the period needed for that, and bears all the costs of remedying it, including work and materials (Civil Code of Georgia, Art. 490). If the defect is not remedied within that period, the buyer may seek a reduction of price by the amount needed for remedy (Art. 492), or terminate the contract because of the defect with reimbursement of expenses (Art. 491). Withdrawal from the contract is possible after the additional period set by the buyer has expired without result (Art. 405). Losses caused by the defect are recovered under the general rules (Art. 494).
5. Proof: an independent construction expert examination, photos and video with dates, and correspondence. Then a claim in civil court.
6. Where to apply: the developer (claim); expert; civil court. For the common property of the building, act together with the association.
7. Evidence: contract and specification, handover act with remarks, photos and video with dates, construction expert report, claim, estimates.
8. Pitfalls: signing an act 'without claims' while aware of the defects; invoking the warranty under the consumer-protection law instead of the Civil Code; repairing the defect yourself before it is recorded and a claim is made; missing the shorter contract-for-work period by applying the sale-purchase period.

Be sure to check

• a flat is not a 'good' under the consumer-protection law, so its warranty periods do not apply; rights arise under the Civil Code
• what counts as a defect: contractual quality, a different thing, a smaller area
• order of claims: remedy at the developer's expense, then price reduction or termination, plus damages
• limitation periods: 6 years for immovable property; for contract for work, from acceptance; and from when they run
• handover act: record defects, do not sign 'without claims'
• evidence (expert report) and where to apply