GENERAL TERMS OF ENGAGEMENT

General provisions

With general terms of engagement of Real estate agency “Sanja Šćepanović PR Real estate agency Šćepanović and associates Novi Sad” business relationship between Mediator in brokering and leasing of real estate and Principal (individual or legal entity) is arranged in accordance with Article 28. of the Law on Real Estate Brokering and Leasing. By concluding the Mediation contract the Principal accepts, he is informed and agrees with mediator’s provision of General terms of engagement in real estate transaction.

Mediation is conducted based on the Mediation contract on brokering or leasing real estate that is concluded between Principal and Mediator.

Principal can have concluded Contracts with multiple Mediators simultaneously (except in case of exclusive mediation).

Buyer/lessee in the principal capacity is obligated to pay intermediary fee to the Mediator that was first to enable him showing of the real estate in subject, that is the one that was first to introduce him to the real estate in subject. In case the Principal (buyer/lessee) was viewing real estate in subject (with intermediation of another mediator or by himself) before the Mediator from Real Estate Agency “Sanja Šćepanović PR Real estate agency Šćepanović and associates Novi Sad” had shown him real estate in subject, he is obliged to inform the Mediator so the showing won’t be repeated and the potential disputes between Principal and Mediator would be avoided, and in the case Principal does not inform the Mediator it is going to be considered that the property was first shown by intermediation of the Mediator from “Sanja Šćepanović PR Real estate agency Šćepanović and associates Novi Sad”.

Seller/lessor in principal capacity is obliged to pay the intermediary fee to the Mediator that was first to introduce him to the potential buyer/lessee. In case the Mediator introduces the Principal (seller/lessor) individual or legal entity that already viewed the real estate in subject, Principal is obliged to inform the Mediator, so the potential disputes between Principal and Mediator are avoided, and in the case Principal does not inform the Mediator it will be considered that the Principal was first introduced with potential buyer/lessee by intermediation of the Mediator from “Sanja Šćepanović PR Real estate agency Šćepanović and associates Novi Sad”.

Immediately before showing the real estate buyer/lessee in principal capacity is obliged to signs Confirmation of viewing the real estate where he/she confirms this is the first time he/she has seen the property by intermediation of that Mediator.

In case the buyer/lessee denies to sign Confirmation in previous paragraph, Mediator is not obligated to show the real estate in subject. In case the Mediator has shown the real estate in subject to the buyer/lessee even after he/she rejected to sing the Confirmation of viewing and buyer/lessee or related individual or legal entity in part II, last line of this General terms of engagement, concludes Contract of trafficking/ leasing of the real estate in subject, the fact that the mediator introduced the buyer/lessee with seller/lessor will be proven with other evidences – witnesses, written or electronic documentations, sms messages and other.

JOB DESCRIPTIONS THAT THE MEDIATOR IS OBLIGED TO DO, MEDIATORS RIGHTS DURING MEDIATION, EXCLUSIVE MEDIATION AND PRINCIPALS OBLIGATIONS

Mediator’s obligations and rights.

To conclude Mediation contract with principal in written or electronic form in accordance with the Law for electronic trafficking
To strive to find and introduce the principal with the individual or legal entity to conclude legal business
To give the Principal objective opinion regarding the real estate price or amount of rent that is in accordance with its characteristics, market opportunities as well as other relevant circumstances.
To inspect the documents that prove property rights or other real right on a real estate that is the subject of trafficking/ renting. To especially provide to the Principal possible risks of entering real estate in subject in the real estate registry; entered rights or burdens on real estate in subject, existence of pre-emptive rights and restrictions in legal transactions in accordance with special provisions
To take the necessary actions in order to present real estate on the market, to put advertise related to the trafficking/leasing of real estate properly and to perform all other tasks that are agreed with the Mediation contract that go beyond regular presentation for which he has the rights for special pre-stated expenses
to enable showing of the real estate
to protect Principals personal data, and also by written statement of the Principal to keep as a business secret the data of the real estate that is the subject of the trafficking/leasing, or regarding that real estate or the business that he intermediates for
to inform Principal regarding all circumstances significant for the subject that he knows of
to mediate in negotiations and endeavor to conclude the best Contract
to be present during the closure of legal transactions (Pre-Contract and Contract)
to be present during real estate handover
to provide legal help (lawyer) at his cost for preparation of Pre-Contract, Contract and other needed documents
to keep evidence of intermediation and sub mediation

It is considered that Mediator has enabled to the Principal a connection with another individual or legal entity for negotiation to conclude legal business if it is enabled to the Principal to connect with other individual or legal entity with whom he negotiated for conclusion of legal business, and especially if he:

directly took or directed the Principal, or third party to a showing of real estate in subject
organized meeting between Principal and third person (or his representative – proxy, relative or similarly) in the purpose of negotiations for conclusion of legal transactions
gave a name, phone number, telefax or email address of the third party interested in conclusion of legal business to the Principal, or if he gave the exact location of the wanted real estate.

Mediator, with a Principals (seller/lesser) consent, has a right to take photographs or record a video of the real estate that is subjected to traffic through Mediation contract. Made photographs and/or video records mediator cannot use in other purposes, except for presentation of real estate in subject to potential buyer/lessee, that is advertisement of the subject by placing it on mediator’s website or through advertise on the internet.

Mediator has a right to conclude the Contract in written or electronic form, whit which he will assign rights and obligations from the Mediation contract, in a part on in whole, to another mediator, if the Principal has specifically agreed to in the Mediation contract. Mediator is obliged to give the copy of Mediation contract to the Principal within three days from the day of conclusion of the Contract.

Mediator has a right to issue an invoice to Principal, in accordance with concluded Mediation contract and this General terms of engagement.

Exclusive mediation

With explicit entering of exclusive mediation clause Principal can be obliged that in the given timeline will not alienate real estate that is subject of the Mediation contract, nor will hire another mediator for intermediation regarding its trafficking.

If during the validity period of explicit mediation clause Principal concludes legal business regarding real estate in subject where another mediator was intermediating, or Principal alone without intermediation of any mediator, Principal is obliged to pay compensation for damage to the Mediator with whom he concluded exclusive mediation in the amount of agreed intermediary fee.

Mediator is obliged to especially worn the Principal in the Mediation contract about the meaning and legal consequences of explicit mediation clause.

Principals obligations

to inform Mediator of any circumstances of importance for performing intermediation
to give Mediator to inspect all original documents that prove Principals ownership rights to real estate that is the subject of the trafficking, that is to worn Mediator of all entered or not entered expenses that exist on the real estate
to ensure to the Mediator and interested party showing of real estate for conclusion of legal transaction on agreed manner and at agreed time
to notify Mediator of any important data regarding real estate, which especially includes right data regarding price, location, structure and other
to pay to the Mediator agreed intermediary fee, in case of realization of agreed trafficking, as well as in cases from part III of this General terms. If specially agreed, to compensate to Mediator other additional costs incurred during the intermediation
to notify Mediator in written or electronic for about all changes regarding mediation, especially regarding changes related to rights on real estate, deadlines and price, and all within three days from the day of the change
to immediately notify Mediator that the individual or legal entity that viewed the property through Mediator (or a related person) has shown interest to conclude the Contract/Pre-Contract of buying/selling the real estate without Mediator, or perform any other legal activity that is consequence of the mediators job

EXERCISE OF RIGHTS ON INTERMEDIARY FEE

Mediator acquires the right on intermediary fee when the Contract in which he intermediated is concluded, except if Mediator and Principal hadn’t agreed that the right on intermediary fee is acquired when concluding the Pre-Contract for which Mediator mediated.

Mediator cannot demand partial payment of mediator fee in advance, that is before conclusion of Pre-Contract or Contract for which intermediated, in accordance with the previous paragraph.

Amount of intermediary fee or the method of determination of amount, as well as the type and amount of expenses for additional services of the Mediator, are determined with Pricelist for intermediary services that is an integral part of this General terms of engagement.

Expenses of acquiring needed documentation which prove the ownership right on the real estate in subject (Excerpt from Real Estate Cadaster and similar) that is necessary for trafficking the real estate in subject bears PRINCIPAL, if not agreed otherwise in the Contract of Intermediation.

Mediator can agree the right on fee for additional expenses necessary for the execution of the job, regardless of the success of the intermediation and ask to be paid in advance the means for certain expenses, if explicitly stated in Mediation contract.

Mediator has a right on intermediary fee if a spouse or life partner, descendant, parent, and other individual related to the individual or legal entity whit whom the Mediator has introduced the Principal with, concludes the intermediated legal activity. Alongside with above mentioned relatives, parents of the spouse, as well as brothers and sisters and legal entity that is owned (co-owned) by potential buyer, or spouses relatives mentioned above and individuals that have been present during the showing of the real estate will be considered related parties.

If the Principal concludes legal business after termination of validity of Mediation contract based on the termination by the Principal and within the period no longer than a month since the day of termination of validity of the contract and that legal business is immediate consequence of Mediators mediation before the termination of the validity of the Mediation contract, Principal is obliged to pay to the Mediator the agreed intermediary fee in whole, unless otherwise agreed in Mediation contract.

If under the condition and within the period from the previous paragraph the Principal concludes legal transaction that is in significant amount the result of Mediators intermediation before the termination of validity of Mediation contract, he is obliged to pay proportional intermediary fee, unless otherwise agreed in Mediation contract

Mediator or sub-mediator doesn’t have a right to an intermediary fee if mediator or sub-mediator concludes a Contract of trafficking real estate with the Principal where the real estate in the contract is the subject of intermediation and mediator or sub-mediator is a contracting party, or if that Contract concludes an individual that performs mediation activities for the Mediator of sub-mediator.

Mediator is not obliged to return paid intermediary fee (in case of termination of the Contract, Pre-contract, withdrawal of one party and similar) unless otherwise agreed in Mediation contract.

LIABILITY FOR DAMAGES

Mediator needs to pay attention and as a good tradesman perform mediation or other activities related to the work that is a subject of the mediation.

Mediator responds to Principal in accordance with a Law for the damage that has occurred during non-fulfilment of contracted obligations given with a Mediation contract and stated in these General terms of Engagement from the Mediator.

Mediator is not responsible for the performance of the obligations of any of the contractual parties in the transaction, which they have mutually assumed in the concluded Contract (Pre-contract).

Mediator is not responsible for the quality of the real estate that is the subject of trafficking nor for hidden flaws (except in case where the seller notified mediator in the written form that the real estate has a hidden flaw, and he hid that information from the buyer).

TERMINATION OF VALIDITY OF MEDIATION CONTRACT

Period of validity of the Contract is determined in the Mediation contract. Unless otherwise agreed, the Contract will be considered concluded for a year.

Mediation contract ceases to produce legal effects upon the conclusion of the legal transaction for which it mediated, after the expiry of the term for which is concluded (unless otherwise agreed in the Mediation contract) or if the Principal withdraws in written or electronic form.

Cancelation of the Mediation contract does not have to be justified, it can be done anytime (except with exclusive mediation where the time limit is considered to be important element of the Contract) and has legal effect from the moment it is delivered to the other party.

GENERAL PROVISIONS

Relations between Principal and Mediator that are not regulated with Mediation contract nor with these General Terms of Engagement will be regulated with immediate provisions of the Law of Intermediation in trafficking and leasing of real estate, with other regulations that regulate this field and with the Law of obligatory relations.

These General terms of engagement are integral part of Mediation contract, they are prominently displayed in Mediators business premises and published on a Mediators web site.

General terms of engagement