General terms of business
Pursuant to the provisions of the Act on Real Estate Brokerage Act (OG 107/07), Rapidus doo from Tar has issued the following:
GENERAL TERMS OF BUSINESS
I. INTRODUCTORY PROVISIONS
General Terms of Business
These General Terms of Business include provisions in particular on the following:
- real estate brokerage,
- types of real estate brokerage agreements, their making, execution and termination
- the rights and obligations of the Broker and the Client,
- the Broker's fee.
For the purpose of these Terms of Business, certain terms thereof shall have the following meaning:
- Real estate brokerage shall be carried out by the Broker and is related to liaising the Client with a Third Party, negotiating, preparing and entering into legal deals whose subject is a real estate transaction, especially in purchasing, selling, replacing, leasing, and the like.
- The Broker is a trading company (name of the agency) for services and trade, which carries out the activity: Real Estate Agency that is, real estate agent.
- The Client is a natural or legal, home or foreign entity concluding a real estate brokerage agreement with the Broker (seller, buyer, leaseholder, lessor, lessee and other likely real estate transaction participants).
- The Third Party is a person whom the Broker intends to liaise with the Client to negotiate the conclusion of legal deals whose subject is a certain property.
- Property is a plot of land, together with everything permanently connected to land on or below the ground in accordance with the provisions of the General Regulations on Property and Other Real Rights.
The Broker receives or makes offers in writing for concluding Brokerage Agreement with the Client.
III. BROKERAGE AGREEEMENT
(1) According to the Real Estate Brokerage Agreement (hereinafter: Agreement), the Broker undertakes to seek a Third Party to liaise with the Client for the negotiation and conclusion of a specific legal transaction on transferring or exercising the right to a particular property, and the Client undertakes to pay a certain brokerage fee if the legal deal is closed.
(2) The Agreement is concluded in writing and for a specified period. The Agreement is considered to be concluded when signed by both parties.
(3) If the Broker and the Client do not agree on the period to which the Agreement is concluded, it shall be deemed to have been concluded for a period of 12 months and may be extended several times following the arrangement between the Parties.
(4) Provisions of the Civil Obligations Act shall apply to the mutual relations between the Broker and the Client.
(1) The Agreement specifies the information on the Agent, on the Client, on the type and on the substance of the business for which the Broker is hired, the Brokerage Fee, the deadline and conditions for the payment of the Brokerage Fee, and any additional costs incurred when the Broker, in agreement with the Client, carries out other services in relation to the business subject of brokerage.
(2) The Agreement may also contain other information relating to the business mediated.
(1) The Client shall not hire any other Broker for the business, that is, he may not sell the real estate on his own or in any other way – Exclusive Brokerage Agreement, which obligation shall be expressly agreed, and the Broker shall specifically warn the Client of the significance and legal consequences of such clause.
(2) If during the term of the Exclusive Brokerage Agreement the Client closes a legal deal through another Broker or on his own, or in some other way for which deal the exclusive Broker was given a brokerage order, he shall pay the Brokerage Fee as though the Broker mediated, or actual costs incurred during mediation that may not be higher than the brokerage fee for the mediated deal, which will be contracted when concluding the Exclusive Brokerage Agreement.
Termination of the Exclusive Brokerage Agreement
(1) The Agreement concluded for a definite period shall terminate upon expiry of the contractual period if the agreement for which it was mediated is not concluded in that period, or upon cancellation of any of the parties. If the notice period is not explicitly stipulated in the Agreement, the notice period is 8 days from the receipt of the notice.
(2) The Client shall compensate the Broker of the costs incurred which were expressly contracted to be paid exclusively by the Client.
(3) If within a period not longer than the duration of the Agreement, following the termination of the Agreement, the Client concludes a legal deal which is primarily a consequence of the Broker's activity prior to the termination of the Agreement; he shall pay the Broker the entire Brokerage Fee unless otherwise stipulated in the Agreement.
(4) The provisions of this Article shall also apply to the termination of the Exclusive Brokerage Agreement.
IV. RIGHTS AND OBLIGATIONS OF THE CONTRACTING PARTIES
IV. I. OBLIGATIONS OF THE BROKER
(1) When mediating, or performing other activities related to the deal which is the subject of brokerage, the Broker shall act with increased attention, according to the rules and practices (professional diligence).
(2) When advertising in public media, or other written and electronic media, in his business premises or elsewhere where advertising is permitted in relation to a property that is the subject of a deal, the Broker shall state his Company.
The Broker shall perform in particular the following:
- endeavor to seek a third party to liaise with the Client for the negotiation and conclusion of a specific legal transaction,
- introduce the Client to the average market price of a similar property,
- obtain and inspect the documents proving ownership or other real right on the property in question,
- do the necessary actions for presenting the property on the market, advertise the property in the appropriate manner, and execute all other actions agreed upon by the Real Estate Brokerage Agreement which exceed the usual presentation, for which he has the right to specific, pre-arranged costs,
- enable property visit,
- mediate in the negotiations and strive to conclude the contract, if obliged to do so,
- keep the personal data of the Client and following the Clients written order, keep as business secret the information on the property he / she mediates or in connection with this property or deal he mediates,
- if the subject of the Agreement is land, check the purpose of the land in question in accordance with the regulations on spatial planning relating to the land,
- notify the Client of any circumstances relevant to the intended deal he or she knows of
- or should know of.
(1) It shall be deemed that Broker has found a Third Party to liaise with the Client for the negotiation and conclusion of a specific legal transaction if the Client is enabled to liaise with the Third Party to negotiate with in order to close a legal deal, in particular if he:
- takes or instructs the Client to visit the property in question
- organizes a meeting between the Client and a Third Party for negotiation and conclusion of a specific legal transaction
- gives the name, telephone or fax number, or address of the Third Party or provides the exact location of the desired property.
(2) The Broker mediating for a Client who wants to remain anonymous has no obligation to disclose the Client's identity to the Third Party until the conclusion of a legal deal.
IV. II. OBLIGATIONS OF THE CLIENT
(1) The Client shall perform in particular the following:
- conclude the Real Estate Brokerage Agreement or the Exclusive Brokerage Agreement with the Broker
- inform the Broker about all circumstances relevant to mediation and provide accurate information on the property, show location, building or occupancy permit to the Broker for the property subject of the Agreement if he owns one and provide the Broker with proof of fulfillment of the obligations towards the third party.
- show documents to the Broker confirming the ownership of the property or other real rights to the property subject of the Agreement , and warn the Broker of all registered and unregistered burdens on the property,
- provide the Broker and the third party with a visit to the property,
- provide the Broker with all relevant information regarding the property, which includes in particular description and price of the property,
- the Client shall keep in confidence offers and information by the Broker; such information may be transferred to the Third Party only following the Broker's written consent, and if the recipient or the Client is acquainted with the property offered by the Broker, he shall inform the Broker without delay thereof,
- pay to the Broker a Brokerage Fee after the closing of the mediated legal deal, that is, pre-contract which commits him to conclude the mediated legal business, unless otherwise agreed,
- if expressly agreed, compensate the Broker for costs incurred during brokerage that exceed the usual brokerage costs,
- notify the Broker in writing about all changes related to the deal the Broker is authorized for and especially about changes related to ownership to the property.
(2) The Client is not obligated to enter into a negotiation process for the closing of a mediated legal deal with a third party that the Broker finds, nor close a legal deal, while the provision of the Agreement stating otherwise shall be deemed null and void.
The Client will be liable for damages if he does not act in good faith, and is obliged to reimburse all costs incurred during mediation, which may not be higher than the brokerage fee for the mediated deal.
V. THE BROKERAGE FEE
(1) The amount of the Brokerage Fee is determined by the Agreement.
The right to the Brokerage Fee
(1) The Broker shall be entitled to the Fee at the moment of the closing of the legal deal he mediated, or when concluding a pre-contract for the legal deal he mediated, unless otherwise agreed.
(2) The Broker may not require partial payment of the fee in advance, that is, before concluding a pre-contract, or Agreement in accordance with Paragraph 1 of this Article. The costs of additional services related to the business subject of brokerage may be charged by the Broker in the amount of the actual costs if this is specifically agreed between the Broker and the Client.
(3) Upon termination of the Agreement, the Broker shall be entitled to the fee within 12 months if not otherwise agreed and in case if the Client closes a legal deal with a Third Party if such a deal is the consequence of the Broker's activity before the termination of the Real Estate Brokerage Agreement.
(4) The Broker has the right to compensation if the Client's spouse, common-law spouse, descendant or parent concludes a legal deal mediated by the Broker to the third party whom the Broker liaised to the Client.
Brokerage Fee Amount
The Fee is charged as a percentage of the total agreed price, and is subject to VAT
VI. FINAL PROVISIONS
(1) Relations between the Broker and the Client not regulated by these General Terms of Business, or by Agreement, or by Exclusive Brokerage Agreement, shall be regulated indirectly by the provisions of the Real Estate Brokerage Act, or if not so, then by the General Terms and Conditions of the Real Estate Brokerage Agreement and other provisions of the Civil Obligations Act.
(2) Any disputes will be settled by the competent court in Poreč.
Tar, January 1st, 2014