General operating conditions

On the basis of Real Estate Agencies Act ZNPosr-UPB1 (Official Gazette RS No. 72/2006) and Code of Obligations (Official Gazette RS No. 83/2001) the real estate agency from the Agency Contract adopts the following

GENERAL OPERATING CONDITIONS

In real estate agency services

1. INTRODUCTION

These general conditions regulate business relationships between a real estate agency and a client, and are an integral part of each agency contract, which the real estate agency concludes with the client. In case the agency contract includes provisions, which are in conflict with these general conditions, the agreed provisions of the agency contract shall apply, unless in conflict with the rules in force.

2. DESCRIPTION OF SERVICES

Services, which the real estate agency shall perform for the client in payment of a fee, are the following:

conclusion of estate agency services contract;

In case if client is a Seller:

verification of the actual condition of the real estate with on spot inspections;
verification of the real estate's state of law, which means acquiring documentation from the real estate's owner that shows the ownership right on the real estate clearly, and verifying the existence of eventual third party rights on the real estate in official records;
examination of market situation and determination of indicative price for real estate sale, purchase, lease or rent by a joint agreement with the client;
searching for opportunities to conclude the intended transaction and pointing it out to the client;
providing for advertising of the intended legal transaction in media according to its standard practice, which the client is acquainted and also agrees with;
striving to find and make contact between client and third party that will negotiate with the client for conclusion of the intended transaction;

In case if client is Seller/Buyer:

organization and, if necessary, guidance for the on-spot real estate inspections;
informing the client about all particular circumstances of the intended transaction; mainly the market conditions, which are significant for determining the price of the real estate, about the content of legislation significant for a valid contract conclusion, about the amount and types of tax obligations, about the level of costs for verification of signatures, land registration costs and eventual other costs regarding the contract conclusion, as well as about eventual risks connected with the non-regulated land registry state of the real estate, entered real rights or other rights of other parties on real estate or connected to eventual unregulated legal relations;
advising in obtaining the appraisal made by court or qualified appraisers;
cooperation in preparations to conclude the intended transaction;
cooperation in arrangements for making the records of the necessary documentation about agreed transaction (contract, preliminary contract, etc.) with a licensed law firm or lawyer, who is informed about the necessary data on the matter;
if parties agree on it, preparation and completion of forms connected with transfer of real estate ownership (tax declaration etc.);
cooperation in organization of meeting for verification of signatures on documents about transactions concluded;
safekeeping things entrusted by the client and third party (e.g. original documentation and keys), until the conclusion of the intended transaction; in the event the principal and third party agree on it also after the conclusion of transaction (e.g. until final fulfillment of obligations from transaction concluded);
according to a special agreement, monitoring the fulfillment of the concluded transaction, mainly in respect of paying the individual installments, when payment by installments has been agreed on;
accepting the fulfillment of obligations from the concluded transaction in case the client authorizes the agent with exclusive written authorization;
drawing up a certificate on partial or complete fulfillment of monetary obligations from the concluded transaction, as for example certificate on payment of partial or entire contract value;
cooperation in real estate handover and drawing up a handover letter.

All of the transactions listed in this Article are included in the agency price. If any of the listed transactions are performed by the client alone or should be unnecessary, this has no effect on the agreed brokerage amount. In case the client unilaterally terminates the agency contract before time, the above-listed transactions of this Article are charged for in accordance with the valid pricelist on the day of the agency contract termination.

Services not described in Paragraph 1 of this Article are subject of additional agreement and extra payment.

3. COMMISSION

In case of brokerage in sale, purchase or exchange of property, the real estate agency has the right to commission in the amount of 4 % of the contract value. The commission shall be paid by the client, except otherwise agreed by the parties.

In case of brokerage in sale or purchase of property, whose value does not exceed 10,000.00 EUR, commission of the real estate agency is determined by a fixed amount of 800.00 EUR.

In case of brokerage in property rental or lease, the real estate agency has the right to commission in the amount of at least one monthly rent or not less than 400.00 EUR.

With agency contract, the real estate agency and the client can also agree on payment in different amount.

Amount of the commission, as stated in this Article, does not include VAT. As real estate agency is liable for payment of VAT, an additional 22 % VAT has to be added up to the stated price.

Commission does not include fees, taxes, notary and other additional services.

4. CONCLUSION OF EXCLUSIVE AGENCY CONTRACT

The client and the real estate agency can conclude an exclusive agency contract. In this case, the client is not allowed to conclude agency contract with another real estate agency in connection with the same transaction or same property for the duration of the agency contract, as well as advertise or sell the same property on their own, through this agency, or any other third party. In case of exclusive agency contract, the real estate agency can transfer agency services to other estate agencies of its choice, with the client remaining in a business relationship only with the real estate agency, but eligible to obtain information about other agencies, which the real estate agency transferred the agency services to.

5. DUTY TO INFORM

The client selling or renting the property is obliged to inform the real estate agency about all circumstances important for execution of agency services. Above all, the agency has to be informed precisely and fairly about the legal state of the property, photocopies have to be delivered, and an insight into original copies of important documents enabled. The real estate agency has to be informed about legal faults of the property and eventual rights of other persons on the property, including the ones registered and not registered in the land register, acquired by contract or original, as well as fairly introduce the agency with the actual state of the property and all substantial errors of the property.

6. LIABILITY FOR DAMAGE

Real estate agency has its liability for damage, which could be caused to the client or third party by breaching the agency contract, insured with insurance company written on Page 1 of the Agency Contract.

7. NOTIFICATION OF TRANSACTION

The client is obliged to inform the real estate agency immediately or within 48 hours to the latest if a transaction has been concluded with a person not introduced by the agency, as well as on the details of this transaction, and submit the photocopies of the contract to the agency, otherwise the client shall cover the costs of further agency services, with the costs not exceeding ¼ of foreseen brokerage commission.

8. CONTACT BETWEEN CLIENT AND THIRD PARTY

The real estate agency can establish contact between the client and the third party in different ways. It is considered the contact between the two to be established by the real estate agency, when:

a meeting of the two parties has been organized in its premises or outside them;
the client or a third party are forwarded any kind of information on address, seat, phone or fax number, or email address of the third party or the client;
an inspection of the property is performed or organized together with a third party;
or when clients have been introduced in any other appropriate way.

9. AGENCY SERVICES FOR BOTH CLIENTS

The real estate agency can serve as agent to both parties. In performing the agency services, the real estate agency shall provide for protecting the interest of both the client and third party, with which the contact has been established by the agent, in the same measure.

10. COSTS

In case the client orders the real estate agency by special written agreement or order to acquire the missing documentation or other services, costs of these services are paid according to the valid pricelist of the real estate agency, which is integral part of these general conditions. The following services, in particular, are paid extra:

costs of court and administrative fees or charges for obtaining extracts from the land registry, copies of the cadastral plan, planning information and other data from official records;
costs incurred in obtaining the missing documentation on the real estate, which the owner has not submitted to the agent, but is necessary for agency services and conclusion of transactions;
costs of appraisers and experts;
costs of signature verification;
costs of real estate agency transactions that are not listed in Article 2 of these general conditions, and specific or unusual costs generated during the work of real estate agency;
land register proposals for entry or removal of annotations, priority notices or incorporations of real rights in the land register of the competent court;
participation in the transfer of subscriptions for electricity, telephone, gas, and other utility services to the new owner or tenant;
costs of lawyer (contract, preliminary contract, etc.).

In the event that real estate agency and the client conclude an agency contract, and the contract is terminated by the client before the expiry of the agreed time, the latter has to reimburse actual costs the agency had with the transaction according to the valid pricelist.

Client has to reimburse costs or damages incurred due to the client's breach of obligations from the agency contract or these conditions. This applies specifically for breaching obligations from Article 5 and 7 of these general conditions (referring the legal and actual condition of real estate to the agent, informing the agent on the concluded transaction), as well as for all other breaches.

11. ACQUIRING THE RIGHT TO COMMISSION

The real estate agency acquires the right to commission (brokerage commission), when the contract, in conclusion of which the agency served as agent, is concluded. If parties of the contract, in conclusion of which the real estate agency has served as the agent, later withdraw from the contract, the real estate agency shall keep the commission paid. In the event of payment delay, the client has to pay statutory interest for late payment of the real estate agency's claim until payment.

In the event that the real estate agency shall find a third person prepared to conclude a legal transaction with, under its terms and in connection with the property that is a subject of the agency contract, but the client is not willing to conclude the contract for their personal reasons, the client is obliged to pay the brokerage commission to the real estate agency as if the transaction in which the agency served as the agent was actually concluded.

13. CONFIDENTIALITY

Any information in connection with the property from this agency contract and efforts of the real estate agency to conclude the contract, which the client is informed about by the real estate agency, are confidential. If the client uses this information to refer them to a third party, the client is obliged to pay the commission to the real estate agency, irrespective of the fact if a contract with the real estate agency has been concluded or not.

14. CONCLUSION OF CONTRACT WITHOUT THE KNOWLEDGE OF THE REAL ESTATE AGENCY

In case the client concludes the contract with the opposite party, which they were introduced to by the real estate agency, without the knowledge of the real estate agency, or if this contract is concluded by the client's spouse or immediate family member, in the duration of the agency contract and also after the duration of the agency contract, the client has to pay the real estate agency additional liquidated damages in the amount of 2 % of the contract price of the concluded transaction as well as the commission. If actual damage suffered by the real estate agency is higher, the client has to reimburse all the damage.

15. RIGHT TO OBTAINING DATA

In order to protect the interests of the client and in accordance with the law, the real estate agency has the right to manage payment transactions, obtain data from the Bank of Slovenia on blocked transaction accounts of natural persons, which act as clients or third parties in real estate trade.

16. LIFE OF AGENCY CONTRACT

The agency contract is concluded by the real estate agency and the client for the period of twelve (12) months and can be repeatedly extended by common agreement. It is considered that the agency contract is extended for an additional nine (9) months, when the client in the period of eight (8) days before the expiry of the contract period does not inform the agent by registered letter that they does not agree with the extension of the contract term. With agency contract the parties can agree on different contract duration. The agency contract can be terminated by the parties at any time, if not in contradiction with the good faith and integrity. The contract has to be terminated in writing with an 8-day notice period. In case the client terminates the contract before its expiry, the client is obliged to pay the real estate agency for the costs incurred until then according to the valid price list of the agency, but in a total amount of up to ¼ of the agreed brokerage commission, including associated VAT.

17. JURISDICTION

Settling of eventual disputes the parties would not be able to settle consensually, shall fall within the jurisdiction of the court with the seat in the real estate agency's place of business.

January, 2020.