land parcel in accordance to the identified rules and on the basis of registered agreement
Georgia affirming the State's obligation to protect cultural heritage and requiring each citizen to
care for, protect and preserve cultural heritage, the Law of Georgia on Protection of Cultural
Heritage defines the legislative principals for protection of existing cultural heritage in Georgia.
According to the Law, State protection of cultural heritage is undertaken by the Ministry of Culture
and Monuments Protection, Ministry of Justice of Georgia, local self-government bodies, as well
as other State Institutions, Public and Legal Persons of Private Law. It is worth to be mentioned
that the State and local self-government bodies exercise their authorities in the sphere of protection
of cultural heritage in accordance to the Constitutional Agreement between the State and the
Orthodox Church of Georgia. The Ministry of Culture and Monuments Protection of Georgia
provides general coordination and manages the activities undertaken in this sector.
In respect with the ownership rights, the Law identifies some differentiations. Namely, the
alienation of the State-owned land parcel - located within the zone of State-owned monument,
considered as cultural value, or located within archeologically protected area - with the right to
possess and use the Law considers the agreement with the Ministry of Culture, Monuments
Protection and Sports with the terms and conditions of protecting and care being identified ahead.
On the other hand, the Law directly restricts alienation of the monuments under private 36
ownership that can only be alienated under the right to possess, and use and with the terms and
conditions to care-and protect.
Law of Georgia on Notary. The stated law defines the types of notary activities and rules of their
implementation. The law also defines which institutions and authorized persons, except the
Notaries, have the right to conduct notarial activities within the territory of Georgia and beyond it.
According to the Article 42 of the Law, the local self-governments have the right to
implement notarial activities related to inheritance, verification of accuracy of the copy with the
original document, proving the fact that a citizen is alive, proving the fact of a citizen’s certain
location. Rural population often applies to local self-governments to obtain certain notarial
services. Especially, when it is required to identify a person and a document, or the notarial
services are required to replace the deceased head of the household with another member. This
rule is often utilized in registration of the land parcels, when as the owner of the land parcel the
other member of the household is registered in place of the deceased member. The representatives
of the Consulates of Georgia (consuls) also other key persons at the Consulates are eligible to
conduct notarial activities on behalf of the State of Georgia beyond the territory of the country
(Article 43). Citizens being abroad may apply to the Consulate of Georgia in the county of their
Law of Georgia on State Property. This Law regulates issues connected to the Georgian state
property management and usage transfer. This law does not apply to state property that includes
useful materials that were left after reconstruction, repair or demolition of transferred in ownership
property owned by the Georgian autonomous republics and local self-government and public legal
waters, continental shelf, state forest fund (except populated areas located in forests), air space,
State Reserves, National Parks, Natural Monuments, recreation areas identified by the Government
of Georgia and/or identified specific construction areas; objects of historical, cultural and artistic
value, cultural and art facilities, as well as lands on which these objects are located, pasture (except
for leased pastures until July 30, 2005), cattle trails, first section of sanitary protection zone of
water supply units (maximum-security zone). The law of state property establishes rules of
transferring ownership of state property and privatization. It also determines the competences of
state authorities and local self-government in the privatization process.
Law of Georgia on Ownership Rights to Agricultural Land. The current law is completely
different from the initial version adopted in 1996. The changes made to this law in different times
(among them the amendments on the basis of the Law #389 dated July 14, 2000) have significantly
changed its initial format and simplified to extent possible the procedures considered under the
Law. The sphere of regulation of the Law mainly extends over the agricultural lands. Article 3.1.
Defines that "a land parcel with or without household structure that is registered at the public
register and used for cattle-breeding and plant cultivation is considered as an agricultural land
parcel" with existing household and additional structures or without them. The law also refers to
the share of a member of household community within the shared hay fields, grazing lands or
forestry areas and the part of the agricultural land that may be the object "of separate ownership
right" (Article 3.2).
The Law determines that the ownership right to agricultural land is granted to the State, physical
person, household community (Komli) and legal entity registered in accordance to the legislation
of Georgia, which carries out its activities in agricultural sphere. Besides, the Law declares the
form of village and household community (Komli) ownership to state-owned grazing lands, private
and form of community ownership in high mountain regions (Article 4.3).
According to the Articles 6 and 8, acquisition of agricultural land is allowed on the basis of
ordinary rules and general restrictions. Ordinary rule considers land alienation without any permits
and other limitations, and general restrictions consider land alienation only on the basis of the
consent of co-owner of shared property.
ownership, but are not registered in public register. The main purpose of this law is to additionally
establish guaranties of defending private rights (article 21 of the Constitution, which presumes
rights of private ownership) and develop international agreements. According to the
article 2, State agencies and officials are obliged to ensure the protection of private property rights
and immunity. According to the law, property legalization means the confirmation of ownership
on property, which only can be dispossessed in cases determined in the Article 21.
The Law on Legalization of Property applies to any property owned by the state or by the local
government. This applies to properties for which ownership was purchased or the reason of
purchasing the property appeared from legal act or deal before 22 July 2007. All the state agencies
and officials are prohibited to purchase the property under the jurisdiction of the law or to control,
city for one square meter of land is 15 GEL.
Property is legalized by the National Agency of Public Register under the control of Ministry of
Justice. The procedures related to the legalization are regulated by the Law on Public Register.
Register under the control of Ministry of Justice, in the process of property registration, also sets
rules for registration of real and personal property. Article 11 defines which types of rights are
registered in real estate register. According to this article real estate rights register records property,
structure, usufruct, servitude, mortgage, rent, leasing, subleasing, borrowing, rights provided for
use by the public law. According to the Article 16, movable property and Intangible Benefit of
Property is registered in public register. According to this article, movable property and Intangible
Benefit of Property registers pledge (excluding financial pledge), leasing, bank guarantee. Public
register law also sets out the procedures and conditions for the registration of companies.
Public register law is not limited only to the rules of registration, its regulation area involves land
registration and changes in land use, for example, changing the status of agricultural land to non-
Formal Entities. The main purpose of this law is to
support land market development and mastering lands owned by government. This law defines the
legal ownership and main terms and conditions about recognition of ownership rights on
nformally occupied lands. It also defines rights of involved state agencies in this process.
nformally occupied agricultural or non-agricultural lands owned by private
and legal entities. Article 2 establishes the lands on which property rights can be recognized. In
particular, it can be a piece of land on which the house or other building is located. Recognition of
private property by the law takes place after paying a fee, but it also can be free of charge.
Lands are recognized free of charge only when they were held legally, but they were not
recognized by the government in the past, in other cases recognition of land required fee.
Ownership rights on payable or on non-payable lands are recognized by the commissions formed
Law of Georgia on Rules for Expropriation of Ownership for Necessary Public Need.
Existing laws provide that compensation for lost assets, including land, structures, trees and
standing crops, should be at current market price without depreciation. They also identify types of
damages eligible to compensation and indicate that both loss of physical assets and loss of income
should be compensated. Income loss due to loss of harvest and business closure should be
compensated to cover net loss.
Land acquisition for public interest may include eminent domain procedures, through a two-phase
process as follows:
Phase 1: A negotiated settlement is sought in a first phase, based on a first compensation proposal
Phase 2: If no agreement is reached, land acquisition is further pursued through a judicial
expropriation process (the implementing agency applies to Court to order expropriation and to fix
The Minister of Economy and Sustainable Development issues expropriation applications for each
property where no agreement could be reached, based on dossiers filed by the implementing
agency. On this basis, the implementing agency applies to Court, which, in a first stage, validates
whether the application is justified by public interest and whether the appropriate procedures have
been followed. Following this ruling validating the fact that eminent domain proceedings
(expropriation) can be followed, the Court in a second stage appoints an expert to assess the
In the case of this project, eminent domain is applicable and expropriation will be sought where
no amicable agreement is reached.
Civil Procedural Code of Georgia. The general courts of Georgia consider the cases according
to the rules identified under the Procedural Civil Code of Georgia. The requirements of the
procedural law are exercised during the lawsuit, during implementation of separate procedural
actions or execution of the court decision.
The Procedural Civil Code of Georgia also regulates those cases when determination of the
defendant is impossible. This may be important for the Project in the cases when the landowner is
not found and correspondingly ownership to his/her land parcel cannot be obtained in legally valid
manner, i.e. it is impossible to enter corresponding agreement with the landowner or him/her
cannot sign other type of document.
The above listed laws and regulations give the possibility of applying the following two
mechanisms for legal application of the property rights:
Obtaining the road right of way without expropriation through the payment of due compensation
(on the basis of negotiations or a court decision) prior to commencement of the activities;
Obtaining the necessary right of way through paying due compensation based on the court
If applied adequately the above listed mechanisms can ensure the appropriate consideration of
lawful interests of all parties and the due observation of the existing legislations.
Law of Georgia on Social Assistance. The law regulates issues connected with the receiving of
the Social welfare, determines types of the social support. It also defines the authority of
administrative bodies in the field of social aid (Article 1). The law applies to the vulnerable persons
permanently legally residing in Georgia. Article 2 sets list of socially unprotected people: persons
in need of special care, poor families and the homeless.
Article 4 defines terms, which explains nature of social aid and identifies persons who should
non-monetary benefit for persons in need of special care, poor families and the homeless. Poor
families consist of persons or groups of people whose socio-economical status is lower than
minimum level set by Georgian government. A homeless person does not have a permanent place
of residence, and he/she is registered with the local authority as homeless. Persons in need of
special care include orphans and children deprived of parental care, persons with disabilities, adults
with disabilities are who are deprived of family care, persons with lost breadwinner. According to
the law a disabled person is a person who has been granted such status by the Law on Medical-
social Expertise. Social security financing sources include Georgian state budget, budgets of Units
of local self-government, the money paid by the beneficiary or his/her representatives, and
contributions (Article 24).
Law of Georgia on Social Protection of Persons With Limited Abilities. According to Article 1
legal status of persons with limited abilities In Georgia is regulated by Declaration of the United
Nations about "Rights of Persons With Limited Abilities from 9 December 1975, Constitution of
Georgia and this law. The person With Limited Abilities is person of strong physical, mental,
intellectual or sensory impairment, which may interfere with the interaction of a variety of
obstacles to the full and effective participation in public life on equal terms with others (Article 2).
According to the Article 8 it is not allowed of the design localities, educational, cultural and sports
facilities, as well as infrastructure construction and of buildings and structures, if these objects are
not suitable for people with disabilities and needs.
Government provides the necessary conditions for education and professional training for persons
with limited abilities. Persons with limited abilities are socially supported by funds, pension, social
assistance technical and other facilities (Article 24). Social security pensions and allowances are
regulated by Georgian legislation on security pensions and allowances for persons with limited
Law of Georgia on Internally Displaced Persons from Occupied Territories – Refugees. According
to the Article 2, the status of refugees is given to people who are citizens of Georgia or noncitizens
without citizenship status of Georgia, who were forced to leave their permanent
place of residence due to occupation, armed conflict, communal violence and / or mass violations
of human rights which became threat for person or person’s family members lives or freedom by
the other country. Any kind of discrimination of refugees is inadmissible. Refugee status is granted
by the Ministry of Internally Displaced Persons from the Occupied Territories, Accommodation
and Refugees (Article 8). According to the Article 14 refugees are not being evicted from their
legal owned residential areas except the cases considered by the law when: (a) written document
is formed with refugee about financial or non-financial compensation in accordance with his/her
land area; (b) Refugee will be given relevant living area, which does not worsen his/her living
conditions; (c) Natural or other disaster takes place, which will be compensated and is regulated
by the general rule.
All refugees have their family unity respect right. Uniting or dividing refugee families without
organized by the Ministry of Internally Displaced Persons from the Occupied Territories,
Accommodation and Refugees (Article 19).
Conditions for Expropriation and Legalization
The above-listed laws and regulations give the possibility of applying the following three
mechanisms for legal application of the property rights: (i) Obtaining the road right of way without
expropriation through the payment of due compensation prior to commencement of the activities;
(ii) Expropriation which gives the possibility of obtaining permanent right to land and/or necessary
road on the basis of Eminent Domain Law or a court decision through the payment of due
compensation; (iii) Expropriation of private properties for urgent public necessity, which gives the
possibility of obtaining permanent rights on land and/or necessary road for the purpose of national
security or accident prevention. Expropriation is to be made on the basis of the 40 Presidential
Decree on Expropriation through the payment of due compensation to affected people.
Expropriation. Land acquisition through expropriation entails lengthy procedures, which are often
resisted. Such an approach will thus be pursued only in extreme cases if there is no agreement
between APs and MDFG. In these cases the Project will not occupy the needed plots until: (i) the
proper judicial process as defined by the law is initiated; (ii) a court injunction is obtained and
communicated to the APs; and (iii) the compensation/rehabilitation amounts are deposited in an
Using the Mechanism of Necessary Road means the right to demand necessary road by court in
specific cases when owners location is unknown or/and person can’t be located, or there are some
liabilities which interrupts land acquisition process.
According to the Article 180 of Civil Code, if land is not necessary needed for proper use of public
roads, electricity, oil, gas and water supply networks, than the owner has right to demand from
neighbour that he/she was the one whose land will be used for these necessary connections. Those
neighbours on whose lands are necessary roads or wiring should be compensated. There is a certain
mechanism set by the Georgian civil trial code about how the public message can be delivered to
respondent whose location is unknown.
According to the Article 78 of Procedural Code in this case the message will be published publicly.
After 7 days following its publication, the court notice will be considered as delivered. After
making this information public, the trial has legal right to review this case and make a decision. In
case of using the necessary road mechanism, compensation will be transferred to an escrow
account. Compensation will be transferred to the owner of land once his/her location will be
identified or after the person will do all the obligations connected to the land transaction.