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Foreclosure Auctions: Legal Consequences and the Continuity of Rights in Comparative Perspective

By Eter Burjanadze

Law and World · Vol. 12, No. 39, pp. 64-79 · 2026

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Abstract

This article examines the legal consequences of foreclosure auctions, focusing on the continuity and extinguishment of real (in rem) and obligational (in personam) rights encumbering immovable property.

The study identifies ambiguities in Georgian enforcement legislation that have resulted in inconsistent enforcement and registration practices. The most problematic issue concerns obligational rights registered after the creation of a mortgage. In practice, similar cases have produced divergent outcomes: some rights are extinguished following a foreclosure auction, while others continue to encumber the property. This inconsistency undermines legal certainty and affects the interests of creditors, debtors, purchasers, and rights holders.

The research is based on an analysis of Georgian legislation, enforcement practice, legal doctrine, and comparative legal materials, including selected European jurisdictions. It also examines the current Law of Georgia on Enforcement Proceedings and the proposed Enforcement Code.

The article argues that legislative reform is needed to establish clear rules on the continuity of rights following foreclosure auctions. Comparative analysis shows that the legal consequences of foreclosure should depend not only on whether a right is real or obligational, but also on its priority and legal regime. In the Georgian context, rights registered after the mortgage should, as a general rule, be extinguished where enforcement is pursued by a secured creditor, while prior rights should remain in force. Where enforcement is pursued by an unsecured creditor, all registered rights should remain unaffected. This approach would strengthen legal certainty, promote consistency in enforcement practice, and better balance the interests of the parties involved.

Details

Publication type
Journal article
Author
  • Eter Burjanadze - Ph.D Candidate, Faculty of Law and Social Sciences, East European University, Georgia
Journal
Law and World
Publication
September 30, 2026
Volume
12
Issue
39
Pages
64-79
Language
English
DOI
10.36475/12.3.4
ISSN
2346-7916
Institutions
East European University
Access
Open access
Licence
CC BY-SA 4.0
Added to catalogue
Metadata source
Supplied by the publisher

Areas of law

Private Law

Keywords

Foreclosure auction enforcement proceedings continuity of rights extinguishment of rights secured creditor

Cite this record

Burjanadze, E. (2026). Foreclosure Auctions: Legal Consequences and the Continuity of Rights in Comparative Perspective. Law and World, 12(39), 64-79. https://doi.org/10.36475/12.3.4
Burjanadze, Eter. "Foreclosure Auctions: Legal Consequences and the Continuity of Rights in Comparative Perspective." Law and World 12, no. 39 (2026): 64-79. https://doi.org/10.36475/12.3.4.
@article{burjanadze2026_1b6c9s,
  title     = {Foreclosure Auctions: Legal Consequences and the Continuity of Rights in Comparative Perspective},
  author    = {Burjanadze, Eter},
  year      = {2026},
  journal   = {Law and World},
  volume    = {12},
  number    = {39},
  pages     = {64--79},
  doi       = {10.36475/12.3.4},
  issn      = {2346-7916},
  language  = {en},
  url       = {https://lawandworld.ge/index.php/law/article/view/1039},
  note      = {Open access}
}
Download BibTeX 
TY  - JOUR
AU  - Burjanadze, Eter
TI  - Foreclosure Auctions: Legal Consequences and the Continuity of Rights in Comparative Perspective
PY  - 2026
JO  - Law and World
VL  - 12
IS  - 39
SN  - 2346-7916
DO  - 10.36475/12.3.4
LA  - en
UR  - https://lawandworld.ge/index.php/law/article/view/1039
AB  - This article examines the legal consequences of foreclosure auctions, focusing on the continuity and extinguishment of real (in rem) and obligational (in personam) rights encumbering immovable property. The study identifies ambiguities in Georgian enforcement legislation that have resulted in inconsistent enforcement and registration practices. The most problematic issue concerns obligational rights registered after the creation of a mortgage. In practice, similar cases have produced divergent outcomes: some rights are extinguished following a foreclosure auction, while others continue to encumber the property. This inconsistency undermines legal certainty and affects the interests of creditors, debtors, purchasers, and rights holders. The research is based on an analysis of Georgian legislation, enforcement practice, legal doctrine, and comparative legal materials, including selected European jurisdictions. It also examines the current Law of Georgia on Enforcement Proceedings and the proposed Enforcement Code. The article argues that legislative reform is needed to establish clear rules on the continuity of rights following foreclosure auctions. Comparative analysis shows that the legal consequences of foreclosure should depend not only on whether a right is real or obligational, but also on its priority and legal regime. In the Georgian context, rights registered after the mortgage should, as a general rule, be extinguished where enforcement is pursued by a secured creditor, while prior rights should remain in force. Where enforcement is pursued by an unsecured creditor, all registered rights should remain unaffected. This approach would strengthen legal certainty, promote consistency in enforcement practice, and better balance the interests of the parties involved.
KW  - Foreclosure auction
KW  - enforcement proceedings
KW  - continuity of rights
KW  - extinguishment of rights
KW  - secured creditor
KW  - იძულებითი აუქციონი
KW  - სააღსრულებო წარმოება
KW  - უფლებათა შენარჩუნება
KW  - უფლებათა შეწყვეტა
KW  - უზრუნველყოფილი კრედიტორი
SP  - 64
EP  - 79
ER  -
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