General Terms and Conditions

Pursuant to Article 28 of the Law on Real Estate Brokerage and Leasing, the company “BEST REAL ESTATE” LLC, with its registered seat in Belgrade, 20 Patrijarha Varnave Street, Company Registration Number: 20552662, Tax Identification Number (PIB): 106193133, Registration Number in the Registry of Real Estate Brokers and Lessors: 058, legally represented by its Director, Ljiljana Teodosijević, as a company engaged in real estate brokerage and leasing activities (hereinafter: the Broker), hereby establishes these General Terms and Conditions on the date of November 8, 2013, with the following content:

I – GENERAL PROVISIONS

Real estate brokerage and leasing activities are performed by the Broker in accordance with Articles 2 and 15–29 of the Law on Real Estate Brokerage and Leasing, as well as Articles 813, 814, 816–820, and 822–826 of the Law on Obligations and other applicable provisions of that Law.
These General Terms and Conditions define the basic terms and manner of performing brokerage in real estate transactions and leases, as well as the mutual rights and obligations of the Broker and the Client — whether a natural person, legal entity, or sole proprietor.

Real estate brokerage is an activity that includes finding and bringing into contact a third party with the Client for the purpose of negotiation and conclusion of a purchase, sale, or lease agreement concerning real estate. The Broker performs such activities in return for monetary compensation.

Brokerage is carried out based on a Brokerage Agreement, and these General Terms and Conditions form an integral part of said agreement. By signing the Brokerage Agreement, the Client confirms that they are familiar with and accept these General Terms and Conditions.

These General Terms and Conditions are displayed in a visible place at the Broker’s business premises, allowing the Client to familiarize themselves with their content.

The Broker cannot engage in brokerage unless a Brokerage Agreement has been concluded with the Client. The Broker maintains records of brokerage activities, including data on brokerage agreements, particularly information about the Client, the real estate subject to sale or lease, the terms of brokerage, and the brokerage fee.

While performing brokerage services, the Broker is entitled to advertise the real estate subject to sale or lease in public media (print, television, radio, electronic media, etc.), at its business premises, on its website, and in other permitted advertising spaces.

When advertising, in addition to its business information, the Broker is obligated to include the price, location, surface area, and structure of the real estate.

The Broker may, if specifically authorized by the Client, conclude a pre-contract or a final contract on the sale or lease of real estate in the name and on behalf of the Client. Such authorization must be in the legally prescribed form.

The Client is not obligated to enter into negotiations or conclude the legal transaction with a third party found by the Broker. Any contractual provision stating otherwise shall be null and void. However, in such cases, the Client may be held liable to compensate the Broker for damages if the Client acted in bad faith.

The Broker is entitled to a brokerage fee paid by the Client in all cases defined by the Law on Real Estate Brokerage and Leasing and the Brokerage Agreement. The amount, deadline, and manner of payment of such fee shall be defined in the Brokerage Agreement.

The Broker is also entitled to reimbursement of costs in cases prescribed by law, as well as for additional services related to the subject matter of the brokerage, if explicitly stated in the Brokerage Agreement, regardless of the outcome of the brokerage. The invoice for services rendered may be issued in accordance with the Brokerage Agreement.

II – TYPES OF BROKERAGE

The Broker may be engaged for brokerage in the sale or lease of real estate by a Client who may be the seller, buyer, lessor, or lessee of the property, as well as authorized representatives of such parties.

The Broker may act for both contracting parties, in both sale and lease transactions.

The Broker and the Client may agree to an exclusive brokerage arrangement through a specific clause in the Brokerage Agreement, under which the Client agrees not to engage any other broker for the same property within the agreed time period.

If, during the validity of such exclusive clause, the Client concludes a transaction regarding the specified property through another broker, the Client shall owe the Broker with whom the exclusive brokerage agreement was concluded the full amount of the agreed brokerage fee as compensation for damages.

The Broker is obligated to specifically warn the Client, in the Brokerage Agreement, about the significance and legal consequences of the exclusivity clause.

The Broker may provide services to a Client who wishes to remain anonymous. In such cases, the Broker is obligated not to disclose the Client’s identity, in accordance with the terms of the Brokerage Agreement, and at the latest until the conclusion of the pre-contract for the transaction. The anonymous Client clause must be explicitly included in the Brokerage Agreement.

The Broker may transfer its rights and obligations under the Brokerage Agreement, in whole or in part, to another broker through a Sub-Brokerage Agreement, if the Client has expressly agreed to such transfer in the Brokerage Agreement.

The Sub-Brokerage Agreement is concluded with another broker in written or electronic form (in accordance with laws regulating electronic commerce) and specifies the terms and conditions of the transfer, payment of the brokerage fee, and termination.

The Broker must provide a copy of the Sub-Brokerage Agreement to the Client within three days of its conclusion, either by hand or via registered mail to the Client’s address as stated in the Brokerage Agreement.

The Broker may also assume the rights and obligations from a Brokerage Agreement previously concluded by another broker, in whole or in part, provided that the original Client of that broker has explicitly agreed to such transfer in their Brokerage Agreement.

III – BROKERAGE AGREEMENT
The brokerage agreement shall be concluded in written or electronic form between the broker and the principal. The brokerage agreement shall particularly contain the rights and obligations of the broker and the principal, information about the broker and the principal, the type and essential elements of the legal transaction for the conclusion of which the broker is mediating, the amount, method, and deadline for payment of the brokerage fee, the term of the agreement, as well as the type and amount of costs and costs of additional services, if such services are agreed upon.

Unless otherwise agreed, the brokerage agreement shall be concluded for a term of one year. Upon the expiration of the agreed term, the broker and the principal may conclude an annex to the brokerage agreement stipulating a new validity period, which annex shall be executed in the same form as the brokerage agreement.

The brokerage agreement shall cease to produce legal effect upon the expiration of its term, the conclusion of the legal transaction for which the broker mediated, or by termination in written or electronic form. Termination of the brokerage agreement does not require specific justification and may be issued by either the principal or the broker. It shall take legal effect upon delivery to the broker or principal, either in person or by registered mail to the addresses specified in the brokerage agreement, unless a different term for the cessation of rights and obligations under the agreement is stipulated. The provisions of the Law on Obligations governing the revocation of an authorization to act shall apply mutatis mutandis to the termination of the brokerage agreement.

If, after termination of the brokerage agreement by the principal, the principal concludes a preliminary agreement or final agreement for the legal transaction that is a direct result of the broker’s mediation within a period not exceeding one month from the date of termination, the principal shall be obligated to pay the agreed brokerage fee in full. If the principal, under the same conditions and within the same period, concludes a preliminary or final agreement which is substantially the result of the broker’s mediation prior to the termination, the principal shall be obligated to pay a proportional brokerage fee, unless otherwise stipulated in the brokerage agreement.

IV – DESCRIPTION OF TASKS AND OBLIGATIONS OF THE BROKER
1. IV) 1. – Description of tasks and obligations of the broker in the sale or lease of real estate, when engaged by the seller or lessor

The broker shall perform the following tasks and undertakes to:

• seek and bring into contact with the principal a person — a potential buyer or lessee — for the purpose of negotiating and concluding a sale or lease agreement for the real estate in question;

• inspect the real estate of the principal and provide an objective opinion regarding the price of the property or lease amount, based on its characteristics, market conditions, and other relevant factors, as well as provide objective advice on other terms of sale or lease;

• review documents proving the principal’s ownership of the real estate and warn the principal of potential risks related to the property registration, recorded rights or encumbrances, rights of first refusal, and any legal restrictions, as well as point out any deficiencies in said documents;

• take necessary actions to present the property on the market for sale or lease in an appropriate manner (via public media, the broker’s premises, or other legally permitted advertising platforms);

• bring potential buyers or tenants to view the property, facilitate viewings, be present during viewings, and coordinate viewing appointments with the principal and the buyer or tenant;

• regularly inform the principal during the term of the brokerage agreement about market conditions, interest of potential buyers or tenants, serious offers presented by them, and all other circumstances relevant to the successful completion of the transaction, which are known to the broker;

• participate in negotiations between the principal and the potential buyer or tenant regarding the price and other terms of sale or lease, and strive for the conclusion of a preliminary agreement and final contract;

• protect the principal’s personal data and, upon written request, treat as confidential all information about the property or the sale/lease thereof;

• upon successful conclusion of negotiations and upon instructions from the principal and the buyer or tenant, engage a lawyer (at the broker’s own expense and discretion, unless otherwise agreed) to draft the preliminary and final agreements, and provide the principal with the opportunity to review and suggest changes to the draft agreements;

• be present at the signing of the preliminary and final agreements in the broker’s office and ensure the buyer or tenant also signs the agreements there;

• be present at the notarization of the agreements before a court or notary public, payment of the purchase price at the bank, and handover of the property, and coordinate the time and place of these actions with the principal and the buyer or tenant;

• maintain records of brokerage activities;

• act with the diligence of a prudent businessman;

• provide, during designated business hours, a person at the business premises to receive complaints from the principal, including complaints concerning nonconformity of service;

• respond in writing to the principal’s written complaint or nonconformity claim within 7 days of receipt;

• be registered in the Real Estate Brokers Registry;

• obtain liability insurance coverage.

2. IV) 2. – Description of tasks and obligations of the broker in the purchase or lease of real estate, when engaged by the buyer or lessee

The broker shall perform the following tasks and undertakes to:

• search for and inform the principal about all real estate properties available on the market that match the principal’s interests and which the broker is authorized to present;

• allow the principal to view the properties selected;

• inform the principal about all terms of sale or lease set by the seller or lessor;

• notify the principal of all circumstances relevant to the transaction that are known to the broker;

• provide an objective opinion regarding the price of the property or lease amount, market conditions, and other relevant circumstances;

• bring the principal into contact with the seller or lessor of the property selected for purchase or lease, for the purpose of negotiating and concluding a preliminary agreement or final agreement;

• participate in negotiations regarding the purchase price or lease amount and other terms of the transaction;

• review the documents proving ownership of the property by the seller or lessor;

• provide the principal access to such documents immediately prior to the signing of a preliminary or final agreement, or earlier if the seller agrees, and alert the principal to any potential risks associated with said documents, including risks related to registration, encumbrances, or legal restrictions;

• upon successful completion of negotiations and upon instruction from the principal and the seller, engage a lawyer (at the broker’s own expense and discretion, unless otherwise agreed) to draft the preliminary and final agreements;

• allow the principal to propose amendments to the agreements and ensure that the principal and seller or lessor sign them in the broker’s premises;

• attend the notarization of agreements before a notary public, payment of the purchase price at the bank, and the handover of the property, and coordinate the time and place of such actions with the principal and the seller or lessor;

• protect the principal’s personal data and, upon written instruction, treat as confidential all information relating to the property or the transaction;

• maintain records of brokerage activities;

• act with the diligence of a prudent businessman.

The broker shall not be obliged to perform certain tasks and actions listed herein if the nature of the transaction does not require them, if they do not affect the validity of the transaction, if the principal explicitly waives them, or in any other case where such actions are deemed unnecessary.

V – BROKERAGE FEE
The broker, in the mediation of real estate purchase and sale transactions, is entitled to a brokerage fee, which shall be charged to the principal in the amount and under the conditions regulated by the brokerage agreement. The broker acquires the right to the brokerage fee at the moment of the conclusion of the contract for the legal transaction in which the broker mediated, or at the moment of conclusion of the preliminary agreement, depending on what is stipulated in the brokerage agreement.

The broker may not demand payment of part or the entirety of the agreed brokerage fee in advance, i.e., prior to the conclusion of the preliminary agreement or, if so agreed in the brokerage agreement, prior to the conclusion of the final agreement for which the broker mediated.

The broker is obligated to specify in the brokerage agreement, in addition to the amount, the method of payment of the agreed brokerage fee, and if this is not possible at the time of conclusion of the agreement, the broker shall do so no later than immediately prior to payment of the agreed brokerage fee.

Exceptionally, upon the principal’s request, the broker may, but is not obliged to, reduce the agreed brokerage fee.

The broker shall also be entitled to the full agreed brokerage fee even if not directly involved in the conclusion of the preliminary or final agreement for the legal transaction in which he mediated, if the broker brought the principal and the other contracting party into contact for the purpose of negotiating and concluding a purchase or lease agreement, in the following cases:

• if the principal — seller or lessor — concludes a preliminary or final agreement with the buyer or lessee introduced by the broker, in the full amount of the agreed brokerage fee;

• if, due to the fault, liability, or withdrawal of the principal — seller or lessor — the agreement is not concluded or executed following a preliminary or final agreement, in the full amount of the agreed brokerage fee;

• if the principal — buyer or lessee — concludes a preliminary or final agreement with the seller or lessor introduced by the broker, in the full amount of the agreed brokerage fee;

• if, due to the fault, liability, or withdrawal of the principal — buyer — the agreement is not concluded or executed following a preliminary or final agreement, in the full amount of the agreed brokerage fee.

Bringing the principal into contact with a person who will conclude a contract with them shall be deemed to include: showing the property, providing data (address or more specific location of the property, data on the principal or on the interested person), whether orally, via advertisement, or through the broker’s website; arranging a meeting or introducing the principal to an interested party; and any action taken by the broker for the purpose of negotiating and concluding the agreement.

It shall be deemed that contact has been established even if the broker performed such actions with persons affiliated with the principal or the interested party, i.e., if such affiliated persons conclude the legal transaction for which the broker mediated.

Affiliated persons shall include spouses, relatives, legal representatives, and any other individuals who directly or indirectly obtained information from the broker about the subject property. Legal entities or entrepreneurs in which the principal or the interested party is a founder, legal representative, or employee shall also be considered affiliated persons.

If the broker is acting on behalf of both contracting parties, the broker shall be entitled to a brokerage fee from both parties, in the amount specified in the respective brokerage agreements concluded with each of them.

The broker is entitled to the full amount of the agreed brokerage fee in the cases provided under Article 27, paragraphs 5, 6, and 7 of the Law on Real Estate Brokerage and Leasing, which are further described in the general provisions of these General Terms of Business.

The broker or sub-broker shall not be entitled to a brokerage fee if they, in their own name and as a contracting party, conclude a contract with the principal which is the subject of brokerage.

VI – COSTS, COSTS OF ADDITIONAL SERVICES, AND COMPENSATION FOR DAMAGES
In addition to the brokerage fee, the broker is entitled to reimbursement of costs only if such right is expressly stipulated in the brokerage agreement.

The broker is also entitled to reimbursement for additional services performed for the principal, if such services are agreed upon in the brokerage agreement or in a separate agreement. These may be charged in advance or upon completion of the service.

The broker is also entitled to reimbursement of costs incurred during the course of brokerage, even if not stipulated in the brokerage agreement, provided that the principal gave an order for brokerage or concluded the brokerage agreement contrary to the principles of good faith and fair dealing. Such costs may not exceed the amount of the agreed brokerage fee for the mediated transaction.

The amount of costs and costs for additional services, as well as the types of additional services, shall be determined individually for each specific service performed by the broker for the principal and agreed upon in the brokerage agreement.

The broker may claim compensation for damages from the principal, even if such compensation is not stipulated in the brokerage agreement, in the event that the principal, without just cause, after accepting an offer or having their offer accepted, refuses to enter into a preliminary or final agreement. Such compensation shall be in a predetermined amount, not exceeding the full amount of the agreed brokerage fee.

The principal shall be liable for all damages caused to the broker by acting contrary to the obligations set out in these General Terms of Business or in the brokerage agreement, in a predetermined amount not exceeding the full agreed brokerage fee.

VII – OBLIGATIONS OF THE PRINCIPAL

Upon conclusion of the brokerage agreement, the Principal must enable the Broker to verify their identity by presenting valid personal identification documents, and in the case of an authorized representative, also a power of attorney that is valid in form and substance according to applicable legal regulations. The seller or lessor, acting as the Principal, must provide the Broker with all documents proving ownership rights over the real estate subject to brokerage, and must inform the Broker of any registered or unregistered encumbrances on the property.

The Principal is obliged to inform the Broker of all circumstances relevant to the brokerage process, to allow the Broker and potential buyer or lessee to view the property at an agreed time and in an agreed manner, to permit the Broker to take photographs, video recordings, and advertise the property, and to clearly and unambiguously provide all essential information about the property, including but not limited to accurate data on price, location, and structure. The Principal must also deliver to the Broker original or certified copies of documents proving ownership at the time of signing the preliminary sales agreement, and to authorize the Broker to provide those documents to the buyer after the buyer has fulfilled all obligations toward the Principal and the Broker.

The Principal must also promptly notify the Broker of any changes related to the sale or lease of the property, especially regarding ownership rights, deadlines, or price, within three (3) days of such change, verbally, in writing, or electronically. The Principal must inform the Broker of any misconduct by the other party introduced by the Broker, or of any breach of these General Terms and Conditions of Business, pay the agreed brokerage fee and any additional costs or service fees, and at all times act in accordance with the principles of good faith and fair dealing.

The Principal-buyer or lessee is required to sign the Broker’s property viewing list upon each property visit arranged by the Broker, confirming the date, time, and persons present during the viewing. If a Principal is shown the same property again by the Broker, or by another broker, they are obliged to inform the Broker if they have previously viewed it.

The Principal explicitly agrees not to enter into a legal transaction with the person introduced by the Broker if such transaction is proposed, or concluded, without the Broker’s knowledge or presence and without paying the agreed brokerage fee. The Principal further agrees to inform the Broker of any such proposal made by a third party.

VIII – LIABILITY OF THE BROKER

The Broker is liable for any damages suffered by the Principal resulting from the Broker’s fault, which includes intent or gross negligence. The Broker is not liable if the transaction for which they acted as intermediary is not concluded, despite due diligence. The Broker is not liable if the Principal has acted contrary to their obligations under these General Terms and Conditions or the brokerage agreement. The Broker is also not liable for damages caused to the Principal by the other contracting party or party to negotiations.

The Broker shall not be liable for the performance of the preliminary or final contract for the sale or lease of real estate, nor for factual or legal defects of the property, the quality or condition of the property, the duration of the lease relationship, or any other rights and obligations arising from the aforementioned contracts. Furthermore, the Broker shall not be responsible for the accuracy of the data contained in documents concerning the Principal, the other party, or the real estate, if such documents are public records.

IX – CONSUMER PROTECTION RULES AND COMPLAINT PROCEDURE

The Broker provides real estate brokerage services while respecting the rights of the Principal. When providing services, the Broker shall not discriminate on any grounds in accordance with the Consumer Protection Act (Official Gazette of the Republic of Serbia No. 62/2014).

The Principal or their authorized representative may submit a complaint in writing if dissatisfied with the service provided, either directly at the Broker’s business premises or via registered mail. Upon receipt of the complaint, the relevant facts of the case will be reviewed. The decision regarding the validity of the complaint shall be made by the Director or a person authorized by the Director.

The deadline for resolving a complaint is seven (7) days from the date of receipt. The decision will state whether the complaint is accepted in whole or in part, or rejected with an explanation of the reasons. If the complaint is justified, the decision must also specify the measures that will be taken to remedy the identified irregularities or violations of consumer rights. If the Principal is not satisfied with the decision, they may file an appeal with the competent ministry.

X – FINAL PROVISIONS

These General Terms and Conditions shall enter into force on the date of their adoption and may be amended in the event of changes to the applicable regulations governing brokerage under the Law on Real Estate Brokerage and Lease. These General Terms and Conditions shall apply to the contractual relationship between the Broker and the Principal from the moment of conclusion of the brokerage agreement and shall be binding to the same extent as the brokerage agreement itself.

Any matters not specifically regulated by the brokerage agreement shall be governed by the provisions of these General Terms and Conditions. In the event of any discrepancy between the provisions of these General Terms and Conditions and the brokerage agreement, the provisions of the brokerage agreement shall prevail.

Best Real Estae d.o.o.