If you want to withdraw
Give notice in writing and within the period the contract sets. Refer to the clause that governs the refund.
Reservation fees and deposits. The wording decides whether you get them back.
In short
Whether a reservation fee in Georgia is refundable depends entirely on the document you sign. If it says ‘non-refundable’, expect to lose the money if you withdraw. A preliminary agreement sets out the later sale in more detail than a reservation, and the future acquisition can be pre-registered if both parties agree. Pay only once you have read both the reservation and the draft contract.
Reservation and preliminary agreement comparedPay only into an account held in the developer's company name, never into an intermediary's personal account.
How to pay safelyBefore you pay
Four steps before the first transfer.
A reservation takes minutes to sign. These four checks take a day and protect your money.
- 1
Ask for both documents
Get the reservation agreement and the draft sale contract. Do not sign anything without knowing the contract that follows it.
- 2
Read the label and the refund terms
Check what the payment is called: reservation fee, advance payment or earnest money. Find the clause on when it is refunded, credited or kept, and how long the flat is held.
- 3
Check the payee
The account holder must be the company named in the contract and entered in the business register. Match the name exactly before you release the transfer.
- 4
Keep the evidence
Pay by bank transfer and ask the developer for a written receipt stating the unit, the amount and the purpose. Keep the bank confirmation and the receipt together.
If the developer does not deliver
If the developer cannot sell you the reserved flat as agreed, your claim also depends on the contract. Have a lawyer pursue it if a deadline passes without result.
Comparison
Reservation or preliminary agreement.
Two documents that both come before the sale itself and have very different effects.
The comparison describes typical arrangements. What applies to you is in the text you sign.
What it does
- Reservation
- Holds the flat
The developer will not sell the unit to anyone else for a set period
- Preliminary agreement
- Duty to buy
Both sides commit to concluding the main contract
A reservation keeps the flat off the market. A preliminary agreement already fixes the price, the unit and the terms of sale.
Getting money back
- Reservation
- as the reservation says
Refunded, kept or credited against the price, depending on the wording
- Preliminary agreement
- as the termination clause says
Refund, deductions and deadlines are set in the agreement
In both cases the wording governs. A verbal promise that you will get the money back is hard to prove in a dispute.
Protection against third parties
- Reservation
- little
The reservation binds only you and the developer
- Preliminary agreement
- pre-registration possible
A future acquisition can be pre-registered by agreement
A pre-registration rules out the registration of other rights over the flat unless the parties agree otherwise.
What a preliminary agreement with a developer should contain is set out clause by clause in our contract guide.
Checking the contractFrequently asked questions
Questions about reservations and deposits.
Refunds, withdrawal and paying safely.
Is a reservation fee in Batumi refundable?
Only if the reservation agreement says so. If it states ‘non-refundable’, the developer can keep the money if you withdraw. Whether the fee is credited against the price when you buy is also set out in the agreement.
What is the difference between an advance payment and earnest money?
An advance payment is part of the purchase price. A payment labelled as earnest money is meant to give the contract extra security, and different consequences can follow if one side fails to perform. Which consequence applies to you depends on the label and the wording of the contract. Have a lawyer check it before you pay.
Can I cancel a preliminary agreement in Georgia?
Yes, if the agreement gives you a right to terminate, on the terms of the termination clause. How much you get back, and when, is set there too. What further rights you have if the developer breaches its obligations is governed by the Civil Code, and your lawyer will assess that case by case.
Can I pay the reservation to an agent?
We advise against it. Pay directly into the developer's company account and have the developer confirm receipt. If an intermediary takes the money, ask in writing on whose behalf and on what basis.
How large should a reservation fee be?
We give no standard figure, because no reliable source for one exists. Pay only what you could afford to lose in the worst case. The larger the sum, the more precise the refund clause needs to be.
Last reviewed on November 2, 2026. Sources: Law of Georgia on Public Registry, Art. 12 (pre-registration) (matsne.gov.ge, version of 1 April 2026), National Agency of Public Registry (napr.gov.ge). This guide is not legal or tax advice.
Read next
More on paying for a new build.
The sale contract, the instalments after the reservation and common scam patterns.
Read first, reserve second.
Ask for the payment plan and the reservation terms before you have a flat held for you.