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Terms & Conditions

General terms and conditions of business operations of brokers in real estate transactions

I GENERAL PROVISIONS

The General Terms and Conditions regulate the business relationship between a real estate broker and a principal (natural or legal person). By concluding a brokerage agreement, i.e. by accepting these conditions, the principal confirms that it is familiar with and agrees with the provisions of the General Terms and Conditions in real estate trade.

II DESCRIPTION OF THE ACTIVITIES THE BROKER IS OBLIGATED TO PERFORM

  • Execute a brokerage agreement with the principal in writing;
  • Endavour to find and bring into contact with the principal a person for the purpose of executing a brokered transaction;
  • Give the principal an objective opinion on the price of the real estate or the amount of the real estate lease in accordance with its characteristics, market conditions, as well as other relevant circumstances;
  • Inspect the documents proving the right of ownership or other real right to real estate whose trade or lease is subject to brokering process and to warn the principal especially of possible risks related to the entry of the real estate in the real estate registers, registered rights or encumbrances on the real estate, the existence of the right of pre-emption and the restriction of real trade in accordance with special regulations;
  • Perform the necessary actions to present the real estate in the market, advertise the sale and/or lease of the real estate by appropriate means and perform all other actions provided for in the brokerage agreement that go beyond the usual presentation, in respect of which the broker shall be entitled to charge separate expenses quoted in advance;
  • Keep data on the identity of the principal, and upon a written order of the principal keep as a business secret data on the real estate, in connection with whose sale, i.e. lease the broker is hired, or in connection with that real estate, or about the business for which the broker is engaged;
  • Inform the principal of all circumstances relevant for the transaction concerned that are known to the broker;
  • Broker in negotiations and strive to execute a contract;
  • Be present at the execution of the brokered transaction (Preliminary Agreement and Agreement);
  • Attend the handover of real estate;

It is considered that the broker has enabled a connection with another person (natural or legal) to negotiate for the execution of a brokered transaction, if the principal is able to contact another person with whom the broker negotiated for the execution of a brokered transaction, especially if the broker:

  • directly took, or sent the principal, or a third party to view the respective real estate;
  • organized a meeting between the principal and a third party to negotiate the execution of a brokered transaction;
  • informed the principal of the name, telephone number, fax number, or e-mail address of a third party interested in executing a brokered transaction, or if the broker informed the principal of the exact location of the requested real estate.

Obligations of the principal

  • inform the broker about all circumstances that are important for the brokerage process,
  • provide the broker with original documents proving their right to immovable property, subject to the transaction, i.e. warn the broker of all registered and unregistered encumbrances that exist on the immovable property;
  • provide the broker and the person interested in executing the brokered transaction with a tour of the real estate, in the agreed manner and at the agreed time;
  • inform the broker about all relevant data on the real estate, which in particular includes accurate data on price, location, structure, etc.;
  • pay the broker the agreed brokerage fee, and if it is specifically agreed, to reimburse the broker for other costs incurred during the brokerage engagement,
  • inform the broker in writing about all changes related to the brokered transaction, and especially about the changes related to real estate rights, deadlines and price, all within three days of the change;
  • immediately inform the broker that the person who viewed the real estate through the broker has shown interest in executing an agreement/preliminary agreement on real estate purchase, lease of real estate, or perform some other legal business as a result of the broker’s work.

III EXERCISE OF THE RIGHT TO BROKER FEE

The broker acquires the right to broker fee at the moment of executing the agreement for which the broker has been engaged, unless the broker and the principal have agreed that the right to brokerage fee is acquired at the moment of executing the preliminary agreement for which the broker has performed brokering activities.

The broker may not demand partial payment of the brokerage fee in advance, i.e. before the execution of the preliminary agreement, i.e. the agreement for which brokerage has been performed, in accordance with the previous paragraph.

The amount of the broker fee, i.e. the manner of determining the amount of the broker fee, as well as the type and amount of costs for additional broker services, are determined by the Price List of Broker Services which is an integral part of these General Terms and Conditions.

The broker may contract the right to reimbursement of additional costs necessary for the execution of the order, regardless of the success of the brokerage, and request payment in advance for certain expenses, if this is explicitly stated in the brokerage agreement.

The broker has the right to broker fee if the spouse, i.e. extramarital partner, descendant, or parent of the person with whom the broker brought the client into contact, executes the brokered transaction.

If, after the end of the brokerage agreement through termination by the principal, but in any case within not more than on month of the date of end of the agreement, the principal executes a transaction as a direct result of brokering by the broker before the end of the brokerage agreement, the principal shall pay the full amount of the agreed broker’s fee to the broker, unless stipulated otherwise in the brokerage agreement.

If, subject to the condition and within the period set out in previous paragraph, the principal executes a transaction that is substantially a result of brokering by the broker before the end of the brokerage agreement, the principal shall pay the broker a proportional share of the broker’s fee, unless stipulated otherwise in the brokerage agreement.

The broker or the sub-broker shall not be entitled to the broker’s fee if it executes the brokered agreement with the principal on its on behalf, as a party, or if such agreement with the principal is executed by a person who performs broker operations in the employ of the broker or the sub-broker.

IV EXERCISE OF THE RIGHT TO BROKER FEE

The provisions of the Law regulating this area and the Law governing contract and torts shall apply to the relations between the principal and the broker which are not regulated by these General Terms and Conditions.