TERMS AND CONDITIONS FOR BROKERAGE OF THE PURCHASE, SALE AND RENTAL OF REAL ESTATE
Completed and approved by the Real Estate Union of the Slovak Republic
These terms and conditions comply with Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, Slovak law and the highest standards for the proper brokerage of the purchase, sale and rental of real estate.
Article I.
GENERAL PROVISIONS
1.1. The brokerage terms and conditions (“Conditions”) lay down the rights and obligations of the Broker and the Client in relation to brokering the purchase, sale and rental of real estate on the basis of the concluded brokerage agreement (“Agreement”), which includes a specific reference hereto. These Conditions form an integral part of the Agreement, along with the provisions hereof and applicable legislation. The provisions of such Agreement have priority over the provisions hereof.
1.2. Legal matters laid down herein are subject to applicable provisions of Act No. 40/1967 Coll., the Civil Code, as amended.
Article II.
INTERPRETATION OF TERMS
2.1. The terms contained herein beginning with a capital letter have the following definitions as specified below or in other documents affected hereby, unless otherwise specified in other documents or herein.
Agreement – the brokerage agreement on the basis of which the Broker commits to secure the transfer of title to the Property or the conclusion of a Rental Agreement for the Property with a third party in exchange for the commission and on behalf of the Client and the Client commits to pay the commission once the outcome is achieved through the Broker’s actions.
Rental Agreement – an agreement or contract on the basis of which the landlord allows property or a part thereof to be used by a third party (tenant) for agreed compensation (rental payment). A sublet agreement or any other contract whereby the Client allows a third party to temporarily use such property is considered a Rental Agreement under the terms hereof.
Real estate – the real estate specified (or characterised by type) in Point (B) of the Agreement.
Non-exclusive brokerage – this form of brokerage allows the Client to conclude brokerage agreements with parties other than the Broker or secure the conclusion of a Contract on their own. Non-exclusive brokerage is not subject to the provisions of Point 7.3 and Point 10.4 herein.
Lump-sum compensation for expenses – Lump-sum compensation for all expenses incurred by the Broker in connection with the performance of duties under the Agreement. Lump-sum compensation for expenses primarily includes expenses for advertising and securing professional assistance, including legal assistance provided by a law firm. Unless the Parties agree otherwise, Lump-sum compensation for expenses is equal to eighty percent of the value of the Broker’s commission specified in Point (C) of the Agreement. The Parties declare that such specification of the Lump-sum compensation for expenses is sufficient and appropriate.
Real estate services – brokering the conclusion of the Contract.
Broker – a party to the Brokerage Agreement and named as such in the Agreement.
Party (or pluralised as Parties) – party to the Agreement, i.e. Broker and/or Client.
Serious grounds – any reason for which a Party is prevented from fulfilling its obligations specified in the Agreement or the Conditions for objective reasons. Serious grounds include war, an armed conflict, state of emergency, other official emergency, hospitalisation of the Party for more than ten days, serious injury to the Party, death of an immediate relative of the Party, sibling, spouse or partner. Serious grounds do not include reasons that the Party was aware of before conclusion of the Agreement or that it could have predicted the consequences thereof.
Exclusive brokerage – a form of brokerage agreed for a specific term during which the Client only wishes to authorise the Broker to broker the sale of the Property as specified in the Brokerage Agreement. Unless the Parties agree otherwise, the Client is not authorised to secure the conclusion of a Contract via a third party (i.e. another broker) or on their own during the period of exclusive brokerage. The provisions of Point 7.3 and Point 10.4 herein are effective and binding for both Parties to the Agreement over the duration of exclusive brokerage.
Client – a part to the Brokerage Agreement and named as such in the Agreement.
Contract – a Contract to transfer title to the Property or a Rental Contract for the Property between the Client and a third party.
Contract to transfer title to the Property – any for-payment or not-for-payment contract that results in transfer of title to the Property or the transfer of an ownership interest or property interest in the company that owns the Property.
Article III.
GENERAL OBLIGATIONS OF THE BROKER
3.1. The Broker commits to secure the conclusion of the Contract on behalf of the Client for the commission under the conditions specified in the Agreement.
3.2. During its activities, the Broker shall exercise all due professional care and comply with Slovak law.
3.3. Without any undue delay, the Broker shall notify the Client of all important facts related to such brokerage, especially any circumstances that could influence the decision of the Client to conclude the Contract.
3.4. The scope of services provided by the Broker to the Client is specified in Point (E) of the Agreement.
3.5. The Broker is liable for defects in Real estate services as specified in §622 and §623 of the Civil Code. The Broker’s website has details as to the procedure for filing and resolving claims, complaints and suggestions.
3.6. The Broker is not liable to the Client for the fulfilment of the commitments of third parties under a concluded Contract.
Article IV.
OBLIGATIONS OF THE BROKER
When brokering the sale or rental of Property
4.1. The Broker shall actively seek out third parties interested in concluding a Contract with the Client.
4.2. For the purposes of seeking out third parties interested in concluding a Contract with the Client, the Broker shall list the Property using electronic and/or printed advertising media. The Broker shall select the specific advertising media. The Broker shall also promote the Property using other means and resources agreed upon with the Client.
4.3. The Parties agree that the Broker shall offer the Property, if the Property is offered for sale, at the price requested by the Client and including the Broker’s commission as specified in Point (C) Subsection (1) of the Agreement and if the Property is offered for rent, the Broker shall offer the Property at the price requested by the Client (monthly rental plus the Client’s requested utility costs as specified in Point (C) Subsection (2) of the Agreement.
4.4. When receiving keys to the Property, the Broker commits:
a) to carefully store the keys and protect against their loss, damage, theft or destruction,
b) to ensure the Property is kept neat and orderly during showings of the Property,
c) to only conducting showings of the Property within the direct scope of activities under the Agreement, whereby it shall ensure that no damage occurs to the Property and/or the Client’s property during such visits/showings,
d) to carefully lock and secure the Property when departing to prevent unauthorised interference.
4.5. The Parties shall confirm receipt of the keys in a performance certificate.
Article V.
OBLIGATIONS OF THE BROKER
When brokering the purchase or rental of Property
5.1. The Broker shall actively seek out third parties, in this case property owners, interested in concluding a Contract with the Client.
5.2. The Parties agree that the Broker shall look for Property offered for sale at the price requested by the Client as specified in Point (C) Subsection (1) of the Agreement and, in the case of a rental, the Broker shall look for Property offered for rent at the at the price requested by the Client for (monthly) rent and including utility costs as specified in Point (C) Subsection (2) of the Agreement.
Article VI.
GENERAL OBLIGATIONS OF THE CLIENT
6.1. The Client commits to pay the Broker the commission if a Contract is concluded through the Broker’s activities under the Agreement.
6.2. Without any undue delay, the Client shall notify the Broker of all important facts related to such brokerage, especially any circumstances that could influence the decision of the Client to conclude the Contract.
6.3. The Client shall provide the Broker with the cooperation necessary to achieve the desired outcome of the Agreement.
6.4. The Client shall provide the Broker, upon Broker request, with all documents and other materials needed by the Broker to accomplish the purpose of the Agreement.
Article VII.
OBLIGATIONS OF THE CLIENT
When brokering the sale or rental of the Property
7.1. The Client shall make the Property accessible to third parties who express an interest in attending a showing of the Property. The Client shall also submit all documents to the Broker upon request demonstrating the Client’s title or right to dispose of the Property.
7.2. The Client shall provide access to the Property to individuals acting on behalf of the Broker (“Agent”), court experts and other professionals and allow them to conduct all activities necessary to obtain detailed information about the Property.
7.3. If the Parties agree on exclusive brokerage, the Client commits over the duration thereof to refrain from concluding a brokerage agreement, brokerage contract, a purchase and sale agreement, or any other similar agreement or contract that would cover brokering the transfer of title to the Property or the rental of the Property. If not, the Client commits to pay the Broker the Lump-sum compensation for expenses calculated from the amount of the commission specified in Point (C), Subsection (1) of the Agreement titled “Financial conditions for SALE of the Property” in the “Broker’s Commission” column under the expectation that such brokerage involves the sale of the Property or to pay the Broker the Lump-sum compensation for expenses calculated from the amount of the commission specified in Point (C), Subsection (2) of the Agreement titled “Financial conditions for RENTAL of the Property” in the “Broker’s Commission” column under the expectation that such brokerage involves the rental of the Property. The parties declare that the amount of the Lump-sum compensation for expenses is adequate given the Broker’s increased expenses and activities in the case of exclusive brokerage as the Broker incurs increased costs for advertising and related services in exclusive brokerage.
7.4. Lump-sum compensation for expenses laid down in Point 7.3 is due on the Broker’s account within 10 days from receipt of notification addressed to the Client.
7.5. If the Broker conducts a showing of the Property with a third party who was previously introduced to the Client (e.g. by another broker), the Client shall inform the Broker of such fact in writing (e.g. on the certificate from the showing) and immediately, at the first showing involving this third party with the Broker at the latest; otherwise the third party is not considered known to the Client.
Article VIII.
OBLIGATIONS OF THE CLIENT
When brokering the purchase or rental of Property
8.1. If the Broker conducts a showing of the Property with the Client that was previously shown to the Client (e.g. by another broker), the Client shall inform the Broker of such fact in writing (e.g. on the certificate from the showing) and immediately, at the first showing with the Broker at the latest; otherwise the Property is not considered known to the Client.
Article IX.
GENERAL PROVISIONS ON COMMISSION
9.1. The Client is entitled to a commission on the signature date of the Contract.
9.2. The commission is due upon signature of the Contract.
9.3. Any mutual financial commitments that exist between the parties may be simply set-off against one another.
9.4. The commission is paid in the form of a non-cash transfer or in cash. The Client is only authorised to pay the commission in cash to the Broker’s authorised representative.
9.5. The Broker is entitled to the commission if the Contract is concluded after the expiration of the Agreement if such conclusion resulted from the Broker’s activities.
9.6. The Client is entitled to the Lump-sum compensation for expenses if the Client refuses to conclude a Contract or future agreement to transfer title to the Property despite the interest shown and provisional (for instance verbal) agreement (feigned interest in selling or purchasing real estate).
9.7. Lump-sum compensation for expenses laid down in Point 7.6 is due on the Broker’s account within 10 days from receipt of notification addressed to the Client.
Article X.
COMMISSION
When brokering the sale or rental of a Property
10.1. If brokerage involves sale of a Property, the Broker’s commission is laid down in Point (C), Subsection (1) of the Agreement in the section titled “Financial conditions for SALE of the Property” in the “Broker's Commission” section. If brokerage involves rental of a Property, the Broker’s commission is laid down in Point (C), Subsection (2) of the Agreement in the section titled “Financial conditions for RENTAL of the Property” in the “Broker's commission” section. The Parties agree that this method of agreement on the brokerage commission is sufficiently understandable and specific.
10.2. If the price for the sale of the Property is reduced below the amount specified in Point (C), Subsection (1) of the Agreement (in the “Client requested price” section), the Broker remains entitled to the commission in the amount specified in Section (C), Subsection (1) of the Agreement in the “Broker’s commission” section, unless the Parties agree otherwise. If the price for the rental of the Property is reduced below the amount specified in Point (C), Subsection (2) of the Agreement (in the “Client requested rental price” section), the Broker remains entitled to the commission in the amount specified in Section (C), Subsection (2) of the Agreement in the “Broker’s commission” section, unless the Parties agree otherwise.
10.3. The Broker is entitled to the commission without further cooperation on the part of the Broker if the Client concludes a Contract with a third party that was identified by the Broker as a party suitable for the conclusion of such Contract (for instance if this person attending a showing of the Property). The Broker is entitled to the commission if the Client concludes a Contract with a party that is connected, in terms of assets or personnel, to such party identified by the Broker as a party suitable for the conclusion of such Contract. The Broker is entitled to the commission if the Client concludes a Contract with a party that is a close affiliated of such party identified by the Broker as a party suitable for the conclusion of such Contract.
10.4. If exclusive brokerage in the sale of the Property is indicated in Point (D) of the Agreement and the Client concludes a Contract involving the Property without further cooperation on the part of the Broker during the exclusive brokerage period as specified in Point (D) of the Agreement, or if the Client refuses to conclude a Contract with a third party without Serious Grounds, the Client commits to pay the Broker the Lump-sum compensation for expenses as calculated from the commission laid down in Point (C), Subsection (1) of the Agreement titled “Financial conditions for SALE of the Property” in the “Broker’s commission” column. If exclusive brokerage in the rental of the Property is indicated in Point (D) of the Agreement and the Client concludes a Rental Contract or similar agreement involving the Property without further cooperation on the part of the Broker during the exclusive brokerage period as specified in Point (D) of the Agreement, or if the Client refuses to conclude a Contract with a third party without Serious Grounds, the Client commits to pay the Broker the Lump-sum compensation for expenses as calculated from the commission laid down in Point (C), Subsection (2) of the Agreement titled “Financial conditions for RENTAL of the Property” in the “Broker’s commission” column. The Parties declare that the Lump-sum compensation for costs is adequate given the Broker’s increased expenses and activities involved in exclusive brokerage.
10.5. Lump-sum compensation for expenses laid down in Point 10.4 is due on the Broker’s account within 10 days from receipt of notification addressed to the Client.
Article XI.
COMMISSION
When brokering the sale or rental of a Property
11.1. If brokerage involves purchase of a Property, the Broker’s commission is laid down in Point (C), Subsection (1) of the Agreement in the section titled “Financial conditions for PURCHASE of the Property” in the “Broker's Commission” section. If brokerage involves rental of a Property, the Broker’s commission is laid down in Point (C), Subsection (2) of the Agreement in the section titled “Financial conditions for RENTAL of the Property” in the “Broker's commission” section. The Parties agree that this method of agreement on the brokerage commission is sufficiently understandable and specific.
11.2. The Broker is entitled to the commission without further cooperation on the part of the Broker if the Client concludes a Contract with a third party that was identified by the Broker as a party suitable for the conclusion of such Contract (for instance if this person attending a showing of the Property owned by such party). The Broker is entitled to the commission if the Client concludes a Contract with a party that is connected, in terms of assets or personnel, to such party identified by the Broker as a party suitable for the conclusion of such Contract. The Broker is entitled to the commission if the Client concludes a Contract with a party that is a close affiliated of such party identified by the Broker as a party suitable for the conclusion of such Contract.
11.3. If the purchase or rental of the Property is brokered, the Broker’s entitlement to the commission remains in force even if the Client concludes a Contract for such Property with a Party identified by the Broker and its parameters differ from those specified by the Client to the Broker or defined in Annex 1 to the Agreement.
11.4. The Broker may seek an advance deposit for payment of the Lump-sum compensation for expenses or commission from the Client upon conclusion of the Agreement.
Article XII.
CORRESPONDENCE AND COMMUNICATION
12.1. Documents shall be delivered to the Parties using the addresses specified in the Agreement or to another address specified by such Party as their mailing address. Documents are considered delivered on the day when the recipient received such documents or the day when the recipient refused to take delivery of such documents, or the day when the documents are returned to sender as undeliverable.
12.2. Communication between the Parties shall primarily be conducted via email (to the addresses specified in the Agreement) or over the phone. Consent expressed by one Party in an email is considered amendment of the Agreement. An email is considered delivered on the day after it is sent, unless an earlier date of delivery is demonstrated.
12.3. Notice may not be delivered using electronic means of communication.
12.4. The Party changing their address shall inform the other Party of such fact without any undue delay
Article XIII.
EXPIRATION OF THE AGREEMENT
13.1. The Agreement expires upon fulfilment of its purpose, upon agreement of the Parties, written notice, or dissolution of the Broker without a legal successor.
13.2. If the Parties agree on non-exclusive brokerage in the Agreement, any of the Parties may give notice to the Agreement in writing.
13.3. If the Parties agree on exclusive brokerage in the agreement, any of the Parties may give notice to the Agreement after the period for which exclusive brokerage was agreed and only before such period expires if the Broker is demonstrably inactive.
13.4. Notice is effective on the date notice in writing is delivered to the other Party to the Agreement or on another, later date specified in the notice itself.
13.5. The Client may withdraw from the Agreement without providing a reason within a period of 4 days. The period for withdrawal from the Agreement expires 14 days from the date on which the Agreement is concluded.
When applying its right to withdraw from the Agreement, the Client shall send the Broker notification of withdrawal from the Agreement (e.g. by mail, fax or email) to the Broker’s address specified in the Agreement. For this purpose, the Client may use the template form for withdrawal under the Agreement forming Annex 3 to the Agreement. The term for withdrawal from the Agreement is preserved if the Client sends notice of the application of its right to withdraw from the Agreement before expiration of the term for withdrawal from the Agreement.
13.6. After withdrawal from the Agreement, the Broker shall return all payments made by the Client in connection to the conclusion of the Agreement to the Client. Payments shall be refunded to the Client without any undue delay and within 14 days of receipt of notice of withdrawal from the Agreement by the Broker. Payment refunds shall be completed using the same payment method used by the Client if the Client does not express its express disagreement to another form of refunding payment, and without charges for any other fees.
13.7. If the Client requests the start of Real estate services, it has the obligation to pay the Broker for actually delivered services from the date on which the Broker is delivered notification of withdrawal from the Agreement during the period of withdrawal from the Agreement.
13.8. The Client may not withdraw from the Agreement if the delivery of the Real estate services commenced upon the express consent of the Client and the Client has declared that it was properly instructed that the expression of such consent waives the right to withdraw from the Agreement until the Real estate services are delivered in full and if the Real estate services were provided in full.
Article XIV.
FINAL PROVISIONS
14.1. The Agreement is concluded for an indefinite period of time.
14.2. The Agreement enters into force and effect on the date of its signature.
14.3. The Agreement is completed in two copies, with each party receiving one copy of the Agreement. Any amendment of the Agreement may only be executed upon the agreement of the parties and must be completed in writing.
14.4. The Client is aware that their personal data are processed in accordance with Act No. 122/2013 Coll. on the Protection of Personal Data and on amendment of certain acts.
14.5. The Client gives its consent to the use of general data on the Property and photos of the Property for the purposes of advertisement in print media, on the Internet, etc.
14.6. These Conditions form an integral part of the Agreement concluded by the Broker and Client and are binding for both Parties. Legal arrangements under the Agreement are subject to the Conditions in force at the time of conclusion of the Agreement.
14.7. If any provisions hereof become invalid or unenforceable in a limited scope, the remaining provisions hereof remain valid in full. The Parties in such case commit to replace such provisions with valid provisions that as closely as possible reflect the content and intent of the invalid or unenforceable provisions.
14.8. The Agreement and Conditions are subject to Slovak law
These Conditions enter into force on 1 July 2014