General terms and conditions

 

I     INTRODUCTORY PROVISIONS

The general terms and conditions of the Real Estate Agency "PALMA NEKRETNINE” from Kragujevac, pursuant to Article 28 of the Real Estate Brokerage Act, shall govern general terms and conditions in doing business.

By concluding the Brokerage Agreement, the Principal confirms that he accepts, that is, that he is familiar with and agrees with the provisions of the General terms and conditions of Brokerage in Real Estate Trade and Lease.

 

II     GENERAL PROVISIONS

The brokerage shall be carried out based on the Brokerage Agreement of sale, purchase or lease of the immovable property concluded between the Principal and the Broker.

The Principal may have signed Brokerage Agreements with several Brokers at the same time (except in the case of exclusive brokerage).

The buyer/tenant in the capacity of Principal shall pay the brokerage commission to the Broker who first enabled him to view the property in question, that is, who first introduced him to the property in question. In the event that the Principal (buyer/tenant) viewed the property in question (through another broker or by himself) before the Agent of the Real Estate Agency "PALMA NEKRETNINE” from Kragujevac showed it to him, he shall inform the Agent about this, so as not to duplicate the viewing, and in order to avoid potential disputes between the Principal and the Broker and between the Brokers, and in the event that he does not do so, it will be considered that he viewed the Real Estate for the first time through the Broker of the Real Estate Agency "PALMA NEKRETNINE” from Kragujevac.

The buyer/tenant in the capacity of Principal shall sign for the broker the Brokerage Agreement and the Work Order on the real estate presentation immediately before viewing the real estate, in which he confirms that he viewed the real estate in question through the Broker.

In the event that the buyer/tenant refuses to sign previously mentioned Brokerage Agreement and Work, the Broker shall not show the real estate in question. In the event that the Broker showed the property in question to the buyer/tenant despite refusing to sign the Work Order, and the buyer/tenant or persons related to him listed in Part II, last paragraph, of these General Terms and Conditions, conclude the Sale/Lease Agreement for the property in question, the fact that the buyer/tenant was brought into contact with the vendor/lessor by a broker will be proven by other means of evidence - witnesses, written or electronic documentation, text messages, etc.

The vendor/lessor in the capacity of Principal shall pay the brokerage commission to the Broker who first brought him in connection with the potential buyer/tenant. In the event that the Broker brings into contact with the Principal (vendor/lessor) a person who has already viewed the property in question, he shall inform the Broker about this, in order to avoid potential disputes between the Principal and the Broker and between the Brokers, and in the event that this is not done, it will be considered that the Principal was brought into contact with the potential buyer/tenant for the first time through the Real estate agency "PALMA NEKRETNINE” from Kragujevac.

 

III     REAL ESTATE OFFER

The real estate offer is based on the information that the Broker received from the owner in writing or verbally, after which he concluded the Brokerage Agreement with the owners. The Broker reserves the right to the possibility of an error in the description and price of the property, the possibility that the advertised property has already been sold (or rented) or the owner has given up on the sale (or rental). This error may arise as the real estate owner unwittingly provided incorrect information or did not report the change of real estate status in time.

Broker’s offers and notices must be kept by the recipient (principal) as a business secret and may only be transferred to third parties with the written approval of the broker.

If the offer recipient is already familiar with the real estate offered to him by the Broker, he shall inform the Broker about it without delay.

 

IV     COMMON PROVISIONS    

Broker’s obligations:

  • to conclude the Brokerage Agreement with the Principal in writing
  • to endeavor to find and introduce to the Principal a party interested in concluding the business transaction;
  • to share with the Principal his objective opinion on the immovable property selling price or the immovable property lease price in accordance with the property characteristics, market conditions, and other relevant factors;
  • to access the files that demonstrate property ownership or any other legal right to sell and/or lease the immovable property, and warn the Principal about potential risks concerning registration of the immovable property in real estate registry, real estate rights registration, real estate encumbrance, the pre-emption right and legal transaction limits, in accordance with the relevant regulations;
  • to perform the necessary actions in order to represent (present) the real estate on the market, to place an advertisement related to the sale, i.e., the lease of the real estate in an appropriate manner and to perform all other actions agreed in the Brokerage Agreement that go beyond the usual presentation, for which the Broker shall be entitled to specific expenses specified in advance;
  • to enable real-estate viewing;
  • to keep the Principal's personal data safe, and if the Principal issues a written plea, keep as a trade secret the information about the real estate which is subject to sale and/or lease or information regarding that real estate or brokerage transaction;
  • to inform the Principal about all relevant factors for said agreement, that he knows about or should know about;
  • to be present at the conclusion of a legal transaction (Preliminary Contract and Contract);
  • to attend the handover of real estate;
  • to provide at his own expense professional assistance (lawyer) related to the drafting of the Preliminary Contract, Contract and other necessary documentation,
  • to keep records of brokerage and sub-brokerage

It is considered that the Broker enabled the Principal to contact another entity (natural or legal) regarding negotiations for the conclusion of a legal transaction, if the Principal has been enabled to enter into a relationship with another entity with whom he negotiated for the conclusion of a legal transaction, and especially if:

  • directly took, or instructed the Principal, or a third party to view the property in question;
  • organized a meeting between the Principal and a third party (or his representative - attorney, relative, etc.) for the purpose of negotiating the conclusion of a legal transaction;
  • communicated to the Principal the name, phone number, telefax, or e-mail address of a third party interested in concluding a legal transaction, or if he communicated the exact location of the requested real estate;

Broker’s rights during brokerage

The Broker is entitled, with the consent of the Principal (vendor/lessor), to make a photograph or a video recording of the immovable property, the transaction of which is agreed upon in the Brokerage Agreement. The Broker may not use taken photos or videos for any other purpose, except for the purpose of presenting the real estate in question to a potential buyer/tenant, that is, for advertising it by placing it on its website or through an advertisement on the Internet.

The Broker is entitled to conclude a Sub-brokerage Agreement in written or electronic form, by which he will, in whole or in part, transfer his rights and obligations from the Brokerage Agreement to another broker, if the Principal has expressly agreed to this in the Brokerage Agreement. The Broker shall hand over a copy of the Sub-brokerage Agreement to the Principal within three days from the date of conclusion of that agreement.

The Broker is entitled to issue an invoice to the Principal for the rendered services, in accordance with the concluded Brokerage Agreement and these General Terms and Conditions.

Exclusive brokerage

By expressly contracting the exclusive brokerage clause, the Principal can oblige that he will not personally alienate the immovable property that is the subject of the Brokerage Agreement within the agreed period, nor will he hire another broker to provide brokerage services in connection with that transaction.

If, during the exclusive brokerage clause validity, the Principal concludes a legal transaction related to the subject immovable property, for which the brokerage was done by another broker, or personally, without the brokerage of any broker, he shall pay the damages to the broker with whom he contracted exclusive brokerage, in the amount of agreed brokerage commission.

The Broker shall specifically warn the Principal in the Brokerage Agreement about the meaning and legal consequences of the exclusive brokerage clause.

Principal’s obligations:

  • To inform the Broker about all relevant factors for the said agreement;
  • To give original documents about his property rights for inspection, i.e. inform the Broker about every registered or unregistered real estate encumbrance;
  • To enable the Broker and the party interested in concluding the legal transaction to view the real-estate in the manner and at the time agreed upon
  • To inform the Broker about all important information about the immovable property, particularly including accurate information about the price, location, structure of the property etc.;
  • Inform the Broker on all changes concerning the brokerage transaction, and especially regarding the changes related to property rights, deadlines and price, no later than 24 hours after the change occurred.
  • to pay the Broker the agreed brokerage commission, in case of realization of the contracted trade as well as in cases referred to in Part III of these General Business Terms and Conditions, and if it is separately agreed, to compensate the Broker for other costs incurred during brokerage;
  • to inform the Broker in writing about all changes related to the brokerage, especially about changes related to real estate rights, deadlines and price, no longer than three days after the change has occurred;
  • to immediately inform the Broker that the entity who viewed the real estate through the Broker (or a person related to him) has shown interest in concluding a Contract/Preliminary Contract on the purchase and sale of real estate, lease of real estate, or perform some other legal work that represent the consequence of the Broker's work, without the Broker.

 

V      BROKERAGE COMMISION RIGHT

The Broker obtains brokerage commission right at the moment of concluding the Contract for which he provided brokerage service, unless the Broker and the Principal have agreed that the brokerage commission right is obtained at the moment of concluding the Preliminary Contract for which the Broker provided brokerage service.

The Broker cannot demand partial payment of the brokerage commission in advance, that is, before the conclusion of the Preliminary Contract, i.e. the Contract, for which he provided brokerage service, in accordance with the previous paragraph.

The amount of brokerage commission, that is, the method of determining the amount of brokerage commission, as well as the type and amount of costs for additional services of the Broker, are determined by the Price List of brokerage services, which is an integral part of these General Terms and Conditions.

The costs of obtaining the necessary documentation proving the ownership of the property in question (Excerpt from the Cadaster, etc.) and which are required for the sale of the property in question shall be borne by the PRINCIPAL, unless otherwise agreed in the Brokerage Agreement.

The Broker can contract the commission right for additional costs necessary for the execution of the order, regardless of the success of the brokerage, and request that funds be paid in advance for certain expenses, if this is expressly stated in the Brokerage Agreement.

The Broker is entitled to a brokerage commission if the spouse, i.e. common-law partner, descendant, parent, as well as other persons related to the person with whom the Broker brought the Principal into contact, concludes the legal transaction. Related persons, in addition to the mentioned relatives, will also be considered the parents of the spouse, his brothers and sisters, as well as the legal entity that is owned (co-owned) by the potential buyer, or his relatives mentioned in this paragraph, as well as the persons who attended the property presentation with him.

If, after the termination of the Brokerage Agreement, based on the cancellation of the Principal, and within a period of no longer than one year from the date of termination of the Agreement, the Principal concludes a legal transaction that is a direct consequence of the Broker’s services before the termination of the Brokerage Agreement, he shall pay the Broker the agreed brokerage commission as a whole, unless otherwise agreed in the Brokerage Agreement.

If, under the conditions and within the period from the previous paragraph, the Principal concludes a legal transaction that is to a significant extent the result of brokerage by the Broker before the termination of the validity of the Brokerage Agreement, he is obliged to pay the Broker a proportionate brokerage fee, unless otherwise agreed in the Brokerage Agreement.

A Broker or a sub-broker is not entitled to brokerage commission if, on his own behalf, as a contracting party, he concludes a Contract on the real estate transaction that is the subject of brokerage with the Principal, i.e. if such a contract with the Principal is concluded by a person who performs brokerage activities for the Broker, i.e. for the sub-broker.

The Broker shall not return the paid brokerage commission (in case of termination of the Contract, Preliminary Contract, withdrawal of one of the contracting parties, etc.), unless otherwise agreed in the Brokerage Agreement.

 

VI      LIABILITY FOR DAMAGES

In carrying out brokerage, i.e. other actions related to the work that is the subject of brokerage, the Broker must act with the care of a good businessman.

The Broker shall be liable to the Principal in accordance with the Law, for damage caused by the Broker's failure to fulfill the contractual obligations assumed by the Brokerage Agreement and specified in these General Terms and Conditions.

The Broker shall not be responsible for the performance of the obligations of any of the Contracting Parties in the transaction, which they mutually assumed in the concluded Contract (Preliminary Contract).

The Broker shall not be responsible for the quality of the real estate that is the subject of the transaction, nor for hidden defects (except in the case that the vendor informed him in writing that the real estate has a hidden defect, and he concealed this information from the buyer).

 

VII     FINAL PROVISIONS

The Brokerage Agreement determines the period for which the Agreement is concluded. Unless otherwise agreed, it shall be considered that the Agreement is concluded for one year.

The Brokerage Agreement ceases to produce legal effects upon the conclusion of the legal business for which brokerage services were given, the expiration of the term for which it was concluded (if not otherwise agreed in the Brokerage Agreement), or the cancellation of the Principal, which is given in written or electronic form.

The termination of the Brokerage Agreement does not have to be explained, it can be given at any time (except for exclusive brokerage, where the term is considered an essential element of the Agreement) and has legal effect from the moment it is delivered to the other party.

The provisions of the Real Estate Brokerage Act, other regulations governing this area and the Law on Contracts and Torts shall directly apply to the relations between the Principal and the Broker if such are not regulated by the Brokerage Agreement or these General Terms and Conditions.

These General Terms and Conditions are an integral part of the Brokerage Agreement, they are displayed in a visible place in the Broker's premises and published on the Broker's website.