GENERAL OPERATING CONDITIONS

1. Introduction

1.1. The present general operating conditions (hereinafter: the general conditions) of the company LJUBLJANA NEPREMIČNINE d.o.o., Cesta na Brdo 69, 1000 Ljubljana (hereinafter: LN) are an integral part of all the Agreements concluded between LN, d.o.o., and the Client who is in a legal business relationship with LN. The provisions of these general conditions shall also apply to all offers, quotations, legal business statements, and other business services arising from the business relationship between LN and the Client.

 

1.2. The Real Estate Agencies Act is applicable for the use of certain terms in the Agreement and the general conditions.

 

2. Description of brokerage activities by individual types of real estate brokerage

2.1. In terms of brokerage activities in the sale and/or purchase, rental and/or lease of the real estate, LN provides the Client with the following services:

Familiarize the Client with the market conditions that are important for determining the offer price of the real estate, the content of the regulations that are relevant to the valid conclusion of a real estate brokerage agreement, the amount and type of the tax obligations, the costs of notary services, land register entry and any other costs relating to the conclusion of an agreement;
Organize the viewing of the real estate after the conclusion of a brokerage agreement in order to check the actual state of the real estate and determine an appropriate offer price according to the market conditions;
Determine the legal status of the real estate on the basis of documents of the Client, access to publicly available records regarding the real estate and warn about any errors found;
Obtain a certificate of intended use of land, if its acquisition is in accordance with the applicable regulations in relation to the real estate;
Advertise the sale of the real estate on the website of the real estate agency or in another appropriate way, chosen by the Agent;
Try to organize a meeting between the Client and a third party, who will negotiate with the Client about the intended conclusion of a legal transaction and look for opportunities for the conclusion of a legal real estate transaction;
Organize viewings of real estate(-s), attend viewings of real estate(-s) or, at the special request of the Client, individually carry out viewings of the real estate(-s);
Participate in negotiations for the conclusion of an agreement subject to brokerage activities;
Store items (documents, objects and other) entrusted to the Agent by the Client and/or a third party;
Monitor the realization of concluded legal transactions in respect of the real estate (e.g. an agreement on the payment of a deposit, a sales agreement, etc.);

2.2. LN is obliged to provide the Client with the above transactions, which are necessary for the conclusion of a legal transaction that is the subject of the brokerage agreement. LN services listed under item 2.1. are included in the brokerage commission. If any of the above transactions are not necessary for a valid conclusion of an agreement or if the Client themselves, at their own request, carries out any of the listed services, the Client is not entitled to demand a reduction of the agreed brokerage commission.

 

2.3. On the basis of the Client`s order, LN provides the Client with other transactions that do not fall within the transactions specified in item 2.1. (hereinafter: "additional transactions"). The Client is obliged to pay costs of additional transactions on the basis of a specified order at prices specified in the currently valid price list of the real estate agency and in accordance with an agreement with LN.

 

2.4. In any case, the Client shall bear the following costs, unless the brokerage agreement specifies otherwise: costs incurred in obtaining missing documentation on the legal status of the real estate, legal and administrative fees or charges in obtaining information from official records, the costs of drawing up an agreement on the legal transaction, the costs of appraisers and experts, the costs of issuing a certificate from official records, the costs of notary services, the costs of advertising an intended legal transaction in the media and/or other media at the request of the Client, the costs of those transactions that are not included in the commission in accordance with the provisions under item 2.1. of these conditions and other special or unusual costs, if incurred in the work of the real estate agency for the Client. These costs shall be paid according to the actual consumption.

 

3. Determining the indicative offer price of the real estate

3.1.In a brokerage agreement, the Client and LN determine an indicative offer price for the sale or purchase of the real estate or the amount of the monthly rent. On the basis of a professional assessment of the market conditions, relevant for determining the purchase price or rent, LN can demand a reduction in the indicative offer price that was agreed with a brokerage agreement. If the Client, at the request of the real estate agency, does not lower the agreed indicative offer price, LN can cease to carry out brokerage services for the Client regarding this real estate, with the exception of advertising it on the websites of LN.

 

3.2. The Client expressly declares that the Agent provided information about the market conditions that are important for determining the indicative offer price of the real estate, the content of the regulations that are important for the conclusion of an agreement, the type and amount of tax obligations, notary costs and other costs of the land register entry and other costs that are relevant to the conclusion of a transaction. The Client also declares that the Agent has provided information about any potential risks regarding the land register status, if it exists.

 

4. Brokerage commission

4.1. LN obtains the right to the brokerage commission when an agreement is concluded, for the agreement in which they participated (hereinafter: "the commission"). The Client is obliged to pay the commission even if an agreement is concluded by the Client`s close family member or a person associated with the Client. In the event that in a legal transaction, a preliminary agreement or an agreement on the deposit is concluded and a deposit is paid in the amount of at least 10% of the contractual value, LN is entitled to a full commission, even if the main agreement is later not concluded or if one of the parties withdraws from the agreement.

 

4.2. If LN is involved in the conclusion of a preliminary agreement, the value of the subject of the main agreement including VAT is considered in determining the brokerage commission.

 

4.3. The Client is obliged to pay LN the brokerage commission in a sales or similar agreement in the amount of 4% of the contractual real estate price plus the corresponding value added taxes. If the contractual real estate price is less than EUR 10,000.00, the commission of the real estate agency amounts to EUR 488.00, including value added tax, regardless of the contractual price.

 

4.4. The parties agree that the costs of individual services (viewings, drawing up an agreement, establishing legal and actual status, advertising) are included in the commission amount, excluding those that the Agent carries out in addition to the brokerage activities by a prior agreement with the Client. Costs that are not included in the commission (e.g. notary act, complaints, agreements with condominium owners, notary costs, costs of land register entry, etc.) shall be charged according to the currently valid price list of the real estate agency and are specially agreed between the parties. These costs may not exceed 50% of the costs paid for the brokerage services.

 

4.5. The contractual price for assessing the commission also includes all payments that the buyer of the real estates makes to the seller, including any payments for installed or not installed equipment and accessories of the real estate that is the subject of the Agreement and irrespective of whether the ownership right of the equipment and/or accessories is transferred together with the real estate or on the basis of a separate legal transaction.

 

4.6. If an agreement (e.g. conversion, agreement on the establishment of the land register status, etc.) does not specify the contractual price or if it is only given for levying taxes or fees, the parties agree that the indicative price that the parties agreed on with this agreement or the price offered on the market shall be considered when determining the commission. The payment of the agreed commission covers the costs of carrying out actions involving making contacts for the Client, checking real estate condition and in negotiations and preparations for the conclusion of legal transactions, which are required for the conclusion of an agreement for a specific real estate, in accordance with item 2.1. of the general conditions.

 

4.7. LN is fully entitled to the brokerage commission in its full amount if, after the conclusion of a brokerage agreement, the Client or their close family member or a person associated with the Client concludes an intended legal transaction or legal transaction that serves essentially the same purpose as the originally intended legal transaction with a person with whom the real estate agency organized a meeting with the Client.

 

4.8. LN is also entitled to the brokerage commission if the parties of an agreement, in the conclusion of which LN was involved, later withdraw from the concluded agreement, mutually annul it in another manner, or if the termination of an agreement, in which LN was involved, occurs as a result of a breach of an agreement or failure to comply with the contractual obligations by any of the parties.

 

4.9. LN is fully entitled to the brokerage commission in its full amount if the parties, after they were brought together by LN, in any way avoid LN, so that the conclusion of an agreement and its realization is not possible, and consequently, the parties conclude a transaction themselves with the purpose of avoiding paying the commission or paying it in a lower amount.

 

4.10. LN is also entitled to the brokerage commission in cases where the Client or a close family member or a person associated with the Client concludes an agreement for the real estate that was the subject of brokerage services with a third party, which was brought into contact with the Client by the real estate agency, and this agreement was concluded within six months of the expiry of a brokerage agreement.

 

4.11. If a brokerage agreement does not specify the brokerage commission in a rental, purchase or similar agreement, the Client is obliged to provide the real estate agency with the commission in the amount of one monthly rent. If the lease period lasts less than a year, the amount of the commission is 10% of the sum of all the monthly rents for the period of the agreement, but not less than ½ of the monthly rent. VAT shall be added to all the amounts. The commission is paid by the lessor as well as the tenant.

 

4.12. ​​​​​If a brokerage agreement does not specify the brokerage commission in the rental, purchase or similar agreement, the Client is obliged to pay the real estate agency the commission in the amount of:

In a lease period of more than 12 months - the equivalent of two months’ rent or similar payments (the tenant and the lessor pay one commission each);
In a lease period of at least 60 months - the equivalent of three months’ rent or similar payments (the tenant and the lessor each pay half of the amount of the joint commission);
In a lease for an indefinite period or a period of at least 120 months - the equivalent of four months’ rent or similar payments (the tenant and the lessor each pay half of the amount of the joint commission);

4.13. The rent or a similar payment, including rental costs plus the corresponding VAT, shall be considered a basis for determining the commission referred to in the preceding paragraph.

 

5. Obligations of the Client

5.1. The Client is obliged to inform LN about all circumstances that are important for the provision of the brokerage services and active participation in the conduct of business, and the Client is obliged, at the request of LN, to submit a tax clearance certificate and any other certificates showing that there are no limitations on the Client`s side that prevent the execution of a legal transaction.

 

5.2. The Client seller or lessor warrants that the real estate is their property and that there are no third party rights to this property. The Client warrants for the authenticity, accuracy and completeness of the data on the real estate, otherwise the Client is liable for all damage that would result therefrom.

 

5.3. When the Client themselves finds a third party and enters into an agreement that was the subject of brokerage services, the Client shall immediately (or within 3 days) notify the real estate agency in writing, stating the name and surname or company of a third party, as well as the address of his/her permanent residence or seat.

 

5.4. The Client is liable for the payment of compensation to LN for the damage that would occur in relation to third parties due to legal and actual obstacles on the Client`s side preventing the conclusion of a legal transaction in which LN is involved. The Client is also liable for the payment of compensation to LN for any damage that might occur or could occur due to a breach of the Client’s obligations set out in these general conditions or in the applicable regulations.

 

5.5. The Client shall treat all the information obtained from LN in terms of real estate brokerage operations, including personal information or the identity of third parties who the real estate agency brought into contract with the Client, with strict confidence, and the Client shall protect business confidentiality and this information and shall not forward it to third parties. In the case of a breach of the prohibitions referred to in the preceding sentence, the Client is obliged to pay LN - in addition to any payment of commission and/or payment for additional services - a contractual penalty in the amount of double the contractually agreed commission. If the actual damage exceeds the amount of the contractual penalty, the real estate agency is entitled to the compensation of all the damage caused.

 

5.6. It is considered that the Client has terminated a brokerage agreement if, for no valid reason, they do not want to conclude an agreement with a third party, with whom the real estate agency brought the Client into contact and who is ready to accept all the conditions of the Client set out in this brokerage agreement.

 

5.7. LN may, at any time, terminate the brokerage agreement without giving a reason for its termination. Termination shall be made in writing. In no case is LN liable to pay compensation to the Client for damages that might occur to the Client or could occur due to the termination of a brokerage agreement by LN.

 

6. Limitation of liability

6.1 LN is not liable for any damage caused to the Client, with the exception of damage that LN or the Agent performing brokerage services for LN caused deliberately.

 

6.2. The acceptance of cash by LN from the buyer or the tenant for the account of the seller or the lessor may only be made in the presence of the seller or the lessor and may be carried out in the business premises of LN. If the Client delivers cash to the Agent in conflict with this paragraph, LN is not liable for any damage caused to the Client in this regard.

 

7. Validity of the general conditions

7.1. These general conditions apply from their adoption onwards. In the case of a conflict between the provisions of a brokerage agreement and these general conditions, the brokerage agreement provisions apply. If after the conclusion of an agreement, the general conditions change and affect the relations between the real estate agency and the Client, who concluded a brokerage agreement with the real estate agency on the basis of the prior applicable general conditions, the general conditions in the amended content shall apply from the day when the real estate agency delivers a copy of the amended general conditions to the Client. 

 

Ljubljana, on 25 May 2018                                              LJUBLJANA NEPREMIČNINE, d.o.o.

Call us on a complimentary telephone number +386 (0)1 2445000 or contact us at info@ljn.si .