A gift does not extinguish a mortgage. The recipient may become owner of encumbered property while the creditor’s security right remains. Check the registry, agreement and restrictions: transferring ownership does not automatically replace the borrower.
Practical example
A parent gifts a mortgaged apartment to a child while continuing repayments. If payments stop, the child’s registration alone will not protect against the creditor’s claim.
How to prepare
Obtain the loan and mortgage agreements and current debt position. Agree who pays. If the debtor is also changing, separately check the need for the creditor’s agreement.
Source and consultation
Legal basis: Civil Code of Georgia, Articles 183, 286, 525. Current text: https://matsne.gov.ge/ka/document/view/31702 — checked on 28.10.2026.
YURFIRMA can help assess the documents and prepare an appropriate agreement. The outcome depends on the circumstances. Contact us.
This is general information and does not replace a legal assessment of your specific case. The current law and the relevant facts are checked again when you seek advice.