General terms and conditions
The offer from Aedium Agency ltd (hereinafter: the Agency) to act as an intermediator and real estate agent is based on information received via written, verbal or electronic means, and is bound by confirmation issued by the Agency and an Intermediation Agreement. The Agency is obligated to conduct the intermediation, and other jobs connected to the subject of the intermediation, with great care and in accordance with all the rules and customs of the trade (the care of a good expert). We retain the possibility that there might be some misunderstanding, mistake, previous sale, or for the owner of the real estate to retract their offer. The Agency is liable for the inaccurate information only in the case of intentional or extremely negligent behaviour on the side of the Agency. Offers and information must be kept in the strictest confidence, and can only be given to a third party after the client receives written approval from the Agency.
2. Duties and Obligations of the Agency
- close the intermediation agreement with the client (Standard or Exclusive [the name of the agreement shown in Section 2. Price list]);
- try and come in contact with a third party and establish contact between them and the client in order to conclude the intermediation deal;
- assess the market value of the real estate and inform the client of the average market price of similar real estate;
- warn the client of any possible inadequacies with the real estate, and of the market situation;
- obtain and inspect all the necessary documents proving the legal ownership of the real estate or any other rights related to the real estate;
- inform the client about all legal, tax and other obligations that apply to them and that are concerned with the legal dealings with the real estate from the contract;
- conduct all the necessary work in order to present the real estate on the market, advertising of the real estate in question in an appropriate manner, and conduct all other work agreed in the intermediation contract that are not a part of a standard presentation;
- ensure the inspection of the real estate (organisation and tour);
- safeguard the client's personal information, and in accordance with a written instruction from the client, safeguard as a business secret all information about the real estate in question or connected to the real estate or the intermediation business;
- inform the client of all the known circumstances pertaining to the agreed intermediation deal that the Agency is aware of or should be aware of;
- mediate in the negotiations and work toward the conclusion of the legal dealings;
- check if the intended purpose of the plot which is the part of the contract conforms to the regulations for the regional planning for that plot;
- attend the closing of the legal dealings (pre-contract or contract);
- on behalf of the client, file all the necessary documentation with the appropriate local tax office and land registry of the appropriate municipal court.
- directly introduced or referred the third party to the client to view the real estate;
- organised a meeting between the client and the third party in order to negotiate the closing of the legal dealing;
- provided the client with the name, address, telephone number, fax number, and/or email address of the third party who is authorised to close the legal dealings, or have provided them with the accurate address of the real estate.
3. Duties and Obligations of the Client
- close the intermediation agreement with the Agency (Standard or Exclusive);
- - inform the Agency of all the conditions pertinent to the conduct of business and to provide them with accurate information of the real estate; to present the Agency with the location and building permit/s if they possess them, and a certificate of occupancy for the real estate referred to in the contract; to present the intermediator with proof of the fulfillment of all the commitments towards the third party;
- present the Agency with all the documentation that proves their ownership over the real estate, or any other legal right over the real estate that is the subject of the intermediation deal, and warn the intermediator of any official or unofficial claims on the real estate;
- inform the Agency of all the important information on the real estate in question, this refers especially to the description and the price of the real estate;
- ensure the Agency and the party interested in the closing of the intermediation deal are provided with a tour of the real estate, accompanied by the Agency;
- immediately upon the closing of the intermediation deal, or the pre-contract that obliges them to close the intermediated legal dealings, if the Agency and the client have agreed the payment of the intermediation fee upon the signing of the pre-contract, to pay the Agency the previously agreed upon fee (unless it was agreed otherwise);
- reimburse the Agency for all the costs created during the intermediation that exceed the usual intermediation costs (if it was explicitly agreed so);
- inform the Agency in writing of any changes concerning the intermediation dealings the Agency was charged with, and especially any changes pertaining to the ownership of the real estate.
The client is not required to enter into negotiations for the closing of the intermediation with the third party presented to them by the Agency, nor are they required to close the legal dealings.
In all the cases stated above, the client, if they have acted in bad faith, is responsible for the damages and is obligated to reimburse the Agency for all the costs created during the intermediation which cannot be smaller than 1/3 and which cannot exceed the agreed intermediation fee for the intermediation deal.
The Agency acquires the right for the intermediation fee in its entirety upon the closing of the pre-contract by which the client agrees to close the intermediated legal dealings, or upon the closing of the contract if this was agreed upon. The fee is paid to the Agency at the time of, or immediately after, the closing of the legal dealings intermediated by the Agency.
4. Achieving the right to the Intermediation fee
If the client decides to withdraw during the closing of the intermediation deal, they are obliged to pay the costs of the time spent, advertising, and other expenses.
The client is obliged to pay the Agency the intermediation fee even when they close a deal with a third party presented to them by the Agency and which differs from the deal the Agency was engaged in intermediating, and which is of the same value as the initial legal dealing, or that has the same purpose as the initial intermediated legal dealing
The Agency has the right to receive the intermediation fee if a third party connected with the client (for example a spouse, legal partner, descendant, parent, CEO or the owner of a company) closes the intermediated legal dealing with the third party presented to them by the Agency.If within 12 months from the termination of the intermediation contract the client closes a legal dealing which is as a result of the Agency’s intermediation prior to the termination of the contract, the client is obligated to pay the Agency the intermediation fee in its entirety, unless otherwise agreed.
5. Intermediation feeThe amount of the intermediation fee is agreed upon in the intermediation real estate sale contract.
The intermediation fee includes all the usual intermediation costs (connecting the client with the third party, the examination of the condition of the real estate, necessary negotiations, and preparation works for the closing of the legal dealing), except those agreed upon separately.
The intermediation fee also covers the following expenses: drawing up of legal documents (pre-contract/contract, and proposals for the registration), costs of the public notary seal (no solemnization), and judicial costs of the registration. The Agency charges for the drawing up of legal documents to the amount of 10% (ten percent) of the agreed upon intermediation fee (commission), and this prior to the client's issue of a legal document order.
If the Agency, in accordance,with the client, conducts for them other works connected to the intermediation works, the type and the cost of these works will be agreed upon in the intermediation contract.
6. Termination of the agreementThe intermediation contract is signed for a defined time and it is terminated after the time span for which it was signed if prior to that date the intermediation deal was not completed, or it can be terminated prior to that date only by written termination by any of the parties of the contract, unless otherwise stated in the intermediation contract. If the termination time was not explicitly stated in the intermediation contract, the termination time is 8 days from the receipt of the termination notice. If the intermediation contract is terminated through a termination notice, the client is obligated to reimburse the Agency for the costs created.
7. General terms and resolution of disputesFor all dealings between the client and the Agency that come out of this intermediation contract and which are not explicitly regulated in the General Terms and Conditions of this agreement nor in the intermediation agreement, general terms of intermediation agreements and other stipulations of the Obligatory Relations Law and the Real Estate Mediation Law apply.
All possible disputes are to be settled before the competent municipal court in Dubrovnik.
Dubrovnik, 01. February 2017
General manager: Milena Burazor