General Business Terms and Conditions of the Agency in Trade and Lease of Real Estate

I RECITALS

General Business Terms and Conditions shall regulate the business relationship between the company, as the Agency in the sale and lease of real estate, and the Client (individual or company).

By concluding a mediation agreement, namely by accepting these terms and conditions, the Client confirms that it is familiar with and agrees with the provisions of the General Business Terms and Conditions of the Agency in Real Estate Trade.

Agency services shall be done on the basis of a Brokerage Agreements concluded by the Client and the Agency.

The Client may have concluded Brokerage Agreements with more than one agency at the same time, except in the case of exclusive brokerage.

The buyer/lessee, in the capacity of the Client, shall pay the agency fee to the Agency who was the first to enable it to inspect the real estate in question, namely who was the first to present it the real estate in question. In case the Client (buyer or lessee) visited the real estate in question through mediation of another agency or itself, namely before the real estate in question was shown to it by the Agency, it shall notify the Agency thereof, and if it fails to do so, it shall be deemed that the first visit and inspection of real estate was through mediation of the Agency.

The buyer/lessee in the capacity of the Client shall sign a protocol of visiting the real estate immediately before visiting and inspection of the real estate, confirming that the real estate in question vas visited and inspected through the Agency.

In case the buyer/lessee refuses to sign the Certificate referred to in the previous paragraph, the Agency shall not be obliged to show him the real estate in question. In case the Agency showed the real estate in question to the buyer/lessee despite its refusal to sign the Certificate of visiting the real estate, and the buyer/lessee or any related person concludes an Agreement on Sale/Lease of the real estate in question, the fact that the buyer/lessee and the seller/lessor have been brought into contact by the Agency shall be proven by other means of evidence – witnesses, hardcopy or electronic documentation, text messages and the like.

The seller/lessor in the capacity of the Client shall pay the agency fee to the Agency who first brought him into contact with a potential buyer/lessee. In case the Agency brings into contact with the Client (seller/lessor) a person who has already visited and inspected the real estate, it shall notify the Agency thereof, and if it fails to do so, it shall be deemed that the Client was brought into contact with potential buyer/lessee for the first time through mediation of the Agency.

II LIABILITIES OF THE AGENCY

Liabilities of the Agency are as follows:

• to enter into a Brokerage Agreement with the Client in writing;
• to try to find a person and bring it into contact with the Client in order to conclude a legal transaction;
• to provide the Client with an objective opinion on the price of real estate or the amount of real estate lease in accordance with its characteristics, market conditions, and other relevant circumstances;
• to inspect documents proving the right of ownership or other title to real estate the sale or lease of which is the subject of mediation and to warn the Client especially of possible risks related to the entry of the real estate in question in real estate registers, registered rights or encumbrances on the real estate, the existence of pre-emption rights and restrictions in legal transactions in accordance with special regulations;
• to perform the necessary actions in order to present the real estate on the market, to place an advertisement regarding the sale or lease of real estate, in an appropriate manner and to perform all other actions agreed in the mediation agreement that exceed the usual presentation for which it is entitled to special, pre-determined costs;
• to enable the visit and inspection of real estate;
• to keep data on the identity of the Client, and by written order of the Client to keep as a business secret data on real estate, in the trade or lease of which it mediates, or regarding that real estate in question, or in the business for which it mediates;
• to notify the Client of all circumstances relevant to the business in question of which it is aware;
• to mediate in negotiations and strive to conclude an agreement;
• to attend and provide professional assistance of lawyers regarding the preparation of the Preliminary Agreement/Agreement on the Sale of Real Estate and other necessary documentation;
• to attend the handover of real estate.

It shall be deemed that the Agency has made it possible for the Client to connect with another person (individual or legal person) to negotiate the conclusion of a legal transaction, if the Client is allowed to contact another person with whom it negotiated the conclusion of a legal transaction, and especially if:

• it directly took, or referred the Client, or a third party, to visit/inspect the real estate in question;
• it organized a meeting between the Client and a third party to negotiate the conclusion of a legal transaction;
• it communicated to the Client the name, telephone number, fax number, or e-mail address of a third party interested in concluding a legal transaction, or if it communicated the exact location of the real estate in question.

III RIGHTS OF THE AGENCY

The Agency shall have the right, with the consent of the Client with whom the Mediation Agreement has been concluded, to take a photo and make a video of the real estate. Photos and video can be used by the Client exclusively for the purpose of marketing presentation of the real estate in question.

The Agency shall have the right to, in hardcopy or electronic form, conclude a Sub-Mediation Agreement, by which it will transfer in whole or in part its rights and obligations under the Brokerage Agreement to another agency, if the Client has expressly agreed to this in the Mediation Agreement.

The Agency shall hand over a copy of the Brokerage Agreement to the Client within five days from the day of concluding the Brokerage Agreement.

The Agency shall have the right to issue an invoice to the Client for the performed services, in accordance with the concluded Brokerage Agreement and these General Business Terms and Conditions.

IV LIABILITIES OF THE CLIENT

Liabilities of the Client are as follows:

• to notify the agency of all the circumstances that are important for the mediation,
• to provide the Agency with original documents proving its right to the real estate that is the subject of the transaction, namely to warn the Agency of all registered and unregistered encumbrances that exist on the real estate;
• to make it possible for the Agency and the person interested in concluding the legal transaction to visit the real estate, in the agreed manner and at the agreed time;
• to notify the Agency of all relevant data on the real estate, which in particular includes accurate data on price, structure, etc.;
• to pay the Agency the agreed agency fee, and if specifically agreed, to reimburse the Agency for other costs incurred while providing agency services;
• to notify the Agency in writing about all changes related to the mediated business, and especially about changes related to real estate rights, deadlines and price, all within three days of the incurred change;
• to immediately notify the Agency that the person who visited the real estate through mediation of the Agency showed interest in concluding a Real Estate Sale/Lease Pre-agreement/Agreement, or performing some other legal business which is the result of the agency’s work without mediation of the Agency;
• to pay the Agency the agreed agency fee in the full amount agreed under the Brokerage Agreement and in case when the other party or a related party of the other party is also the Client of the Agency.

V EXCLUSIVE AGENCY

The Client may undertake to explicitly agree on an exclusive mediation clause, that it will not personally alienate the real estate which is the subject of the Brokerage Agreement within the agreed period, nor will it hire another agency to mediate in respect of its transactions.

If during the validity of the exclusive mediation clause the Client concludes a legal transaction in relation to the real estate in question, for which another agency mediated or mediation was in person, without the mediation of any agency, it shall pay the agreed mediation fee for damages to the agency with whom it has contracted exclusive agency arrangement.

The Agency shall warn the Client in the Brokerage Agreement about the meaning and legal consequences of the exclusive agency clause.

VI EXERCISE OF THE RIGHT TO AN AGENCY FEE

The Agency shall have the right to mediation fee on the day of notarization of the pre-agreement/agreement for the sale of real estate in which the Agency has mediated, and no later than fifteen days from the date of notarization of the Real Estate Sales Agreement.

The Agency may not demand partial payment of the mediation commission in advance, namely before the conclusion of the pre-agreement or agreement in which it mediated, all in accordance with the previous paragraph.

The amount of mediation fee, namely the manner of determining the amount of mediation fee as well as the type and amount of costs for additional services of the Agency, shall be set in the Pricelist of Mediation Services which is an integral part of these General Business Terms and Conditions.

The Agency may contract the right to reimbursement of additional costs necessary for the execution of the order, regardless of the success of the mediation, and request to be paid in advance for certain expenses, if explicitly stated in the mediation agreement.

The agency shall be entitled to the mediation fee if the spouse or extramarital partner, descendant, parent or any other related person, with whom the Agency has brought the Client into contact, concludes the mediated legal transaction.

If after the termination of the mediation agreement, based on the termination by the Client, and within a period not exceeding one month from the date of termination of the agreement, the Client concludes a legal transaction resulting from the Agency’s mediation before the termination of the mediation agreement, it shall pay the agreed mediation fee in full to the Agency, unless otherwise agreed in the mediation agreement.

If, under the condition and within the period referred to in the previous paragraph, the Client concludes a legal transaction that is significantly the result of the Agency’s brokerage before the termination of the brokerage agreement, it shall pay the Agency a proportional agency fee, unless otherwise agreed.

The Agency or sub-Agency shall not be entitled to agency fee if it concludes an agreement with the Client on its own behalf, as a contracting party, which is the subject of brokerage services, or if such an agreement with the Client is concluded by a person performing agency activities for the Agency or sub-Agency.

The costs of obtaining the necessary documentation proving the ownership of the real estate in question (Excerpt from the Cadastral Service etc.), which is required for the sale of the real estate in question, shall be borne by the Client, unless otherwise agreed in the Brokerage Agreement.

The Agency has the right to grant a discount to the Client on the amount of the mediation fee.

VII LIABILITY FOR DAMAGES

The Agency in performing mediation, namely other actions related to the business which is the subject of the brokerage, must act with the care of a prudent businessman.

The Agency shall be liable to the Client in accordance with the Law, for damage caused by non-fulfillment of contractual obligations assumed under the Brokerage Agreement and specified in these General Business Terms and Conditions by the Agency.

The Agency shall not be held responsible for the fulfillment of obligations of any of the contracting parties in the transaction, which they mutually took over in the concluded preliminary agreement/agreement for the sale of real estate.

The Agency shall not be responsible for the quality of the real estate which is the subject of the transaction, nor for hidden defects (unless the seller told it in writing that the real estate has a hidden defect, and it hid this information from the buyer).

VIII FINAL PROVISION

The provisions of the Law regulating this area and the Law of Contract and Torts shall apply to the relations between the Client and the Agency which are not regulated by these General Business Terms and Conditions, and which are not contracted by the brokerage agreement.

IX PRICELIST OF SERVICES

Item	Amount	Paid by Client	Due date for payment
Sales – commission	2.50% of the contracted price	Seller	Pre-agreement/agreement
Purchase – commission	2.50% of the contracted price	Buyer	Pre-agreement/agreement
Lease – commission	150% of the first monthly rent	Lessor	Lease Agreement
Lease – commission	150% of the first monthly rent	Lessee	Lease Agreement

NOTE:

• Everything that is not provided for in this Pricelist shall be directly agreed with the Agency’s responsible person
• The Client shall agree with the Agency, either orally or in writing, on the amount of compensation for additional work performed for the Client by the Agency, depending on the type and scope of work
• In accordance with Article 34 of the Law on Foreign Exchange Operations, payment for all services shall be made exclusively in dinars at the appropriate exchange rate on the day of payment.

Belgrade, April 28, 2022

Nikola Nedeljković, direktor