REAL ESTATE TRANSACTION MEDIATION
Article 1
This Law regulates the conditions and manner of performing mediation in the sale and lease of real estate, as well as supervision over the implementation of this Law.
Application of other laws
Article 2
The provisions of the law governing obligations shall apply accordingly to issues not specifically regulated by this Law.
Meaning of certain terms
Article 3
Some terms used in this Law have the following meanings:
1) mediation in the sale and lease of real estate is an activity that includes finding activities for the purpose of bringing into contact with the principal the other contracting party, who would negotiate with him on the conclusion, or conclude, of a contract for the sale or lease of real estate, and which are performed for a fee (hereinafter referred to as: mediation);
2) an intermediary is a company, or entrepreneur, with its registered office in the Republic of Serbia and who is entered in the Register of Intermediaries;
3) The Register of Intermediaries is a register maintained in written and electronic form by the ministry responsible for trade affairs (hereinafter: the ministry).
II CONDITIONS FOR PERFORMING MEDIATION
Entry into the Register of Intermediaries
Article 4
Entry into the Register of Intermediaries shall be carried out at the request of the person requesting entry into that register (hereinafter: the applicant).
The applicant may commence performing mediation on the date of the decision on entry into the Register of Intermediaries, which shall be deemed to be the date of entry into that register.
The decision on entry into the Register of Intermediaries shall be issued by the minister responsible for trade affairs (hereinafter: the minister), within 30 days of the date of submission of the application.
Conditions for registration in the Register of Intermediaries
Article 5
The conditions for registration in the Register of Intermediaries are:
1) that the entrepreneur or at least one natural person establishing a company, or another member of a company, or at least one employee, or at least one person engaged outside of an employment relationship (hereinafter: engaged person) has passed the professional exam referred to in Article 11 of this Law;
2) a valid insurance contract concluded in accordance with Article 13 of this Law;
3) appropriate business premises in accordance with Article 14 of this Law;
4) that no protective measure referred to in Article 32, paragraph 2, and Article 33, paragraph 4, of this Law has been imposed, which is in force at the time of submitting the application.
Data to be entered in the Register of Intermediaries
Article 6
The Register of Intermediaries shall record and maintain data on:
1) intermediaries (business name, address of the head office and branch, tax identification number, personal identification number, etc.);
2) employees, or engaged persons who have passed the professional exam referred to in Article 11 of this Law;
3) the address of the business premises referred to in Article 14 of this Law;
4) the imposed protective measures referred to in Article 32, paragraph 2, and Article 33, paragraph 4, of this Law.
Publicity of the Register of Intermediaries
Article 7
The Register of Intermediaries is public and all persons may inspect the data kept in the Register of Intermediaries free of charge, without restrictions.
The Ministry shall publish the Register of Intermediaries on the Ministry’s website.
Changes in data in the Register of Intermediaries
Article 8
The Intermediary shall be obliged to report any change in data recorded in the Register of Intermediaries within seven days from the date of the change, in order to enter the change in the Register of Intermediaries.
The Ministry shall ex officio make changes to data in the Register of Intermediaries, based on data available to state authorities as part of official records, as well as data from supervision conducted in accordance with this Law.
Extract from the Register of Mediators
Article 9
At the request of an interested person, the Ministry shall issue an extract from the Register of Mediators, within three days of the date of receipt of the request.
Removal from the Register of Mediators
Article 10
A mediator shall be removed from the Register of Mediators:
1) if any of the conditions referred to in Article 5, paragraph 1, items 1), 2) or 3) of this Law cease to exist;
2) at his/her own request.
The decision on removal from the Register of Mediators shall be issued by the Minister, based on data from public records, as well as data determined in the supervision procedure.
Professional examination
Article 11
Professional competence to perform mediation activities shall be determined by passing a professional examination (hereinafter referred to as: professional examination).
A natural person taking a professional examination must have a permanent residence in the territory of the Republic of Serbia and at least a level IV qualification.
A natural person who passes the professional examination shall be issued a certificate of passing the professional examination.
The Ministry shall keep records of the issued certificates referred to in paragraph 3 of this Article.
The funds generated from payments for taking the professional exam shall be revenue of the budget of the Republic of Serbia.
Prohibition of unauthorized mediation and conflict of interest
Article 12
It is prohibited for a legal or natural person who is not registered in the Register of Mediators to perform mediation.
It is prohibited for a natural person who has not passed the professional exam to perform mediation services for an intermediary.
It is prohibited for a natural person who has passed the professional exam to simultaneously perform mediation services for two or more intermediaries, or services related to the business that is the subject of mediation, as well as to perform other services.
Article 13
The intermediary is obliged to have a valid insurance contract with an insurance company based in the Republic of Serbia on liability insurance for damage that could occur for the principal due to non-fulfillment of the contractual obligations assumed by the mediation agreement from Article 15 of this law, as well as the obligations prescribed by Article 16 of this law.
For damage that the intermediary could cause to the principal by performing mediation, the insurance amount is a minimum of 15,000.00 euros in dinar equivalent per one insured case, i.e. a total of at least 45,000.00 euros in dinar equivalent for all compensation claims in one year of insurance.
Business space and equipment
Article 14
The mediator carries out mediation in a suitable business premises with suitable equipment, which meet the minimum technical requirements and which are functionally separated from the residential premises.
III METHOD OF PERFORMING MEDIATION
Mediation Agreement
Article 15
Mediation is carried out on the basis of a contract on mediation in traffic, i.e. real estate lease (hereinafter: mediation contract), concluded by the principal and the mediator.
The principal can be a seller, buyer, lessor or lessee, or an attorney of one of those persons.
The agreement on mediation is concluded in written, i.e. electronic form, in accordance with the law governing electronic commerce.
In addition to the rights and obligations of the mediator and the principal, the mediation agreement contains information about the mediator and the number under which he is registered in the Register of mediators, the principal, the type and essential elements of the legal transaction for the purpose of which the mediator is mediating, the amount, method and deadline for payment of the mediation fee. , the term of validity of the contract and the type and cost of additional services, if contracted.
Obligations of intermediaries
Article 16
The mediator, depending on the type of mediated legal work, undertakes to perform the following:
1) to try to find and bring in contact with the principal a person for the purpose of concluding the deal that is the subject of the mediation contract;
2) give the principal an objective opinion on the price of real estate or the amount of real estate rent in accordance with its characteristics, market opportunities, as well as other relevant circumstances;
3) inspect the documents that prove the right of ownership or other real right to immovable property whose sale or lease is the subject of mediation, and warn the principal in particular of:
(1) possible risks related to the registration of the subject real estate in the real estate registers;
(2) registered rights, i.e. encumbrances on the subject immovable property;
(3) the existence of the right of first refusal and limitations in legal transactions in accordance with special regulations;
4) perform the necessary actions for the presentation of the real estate on the market, place an advertisement related to the sale, i.e. the lease of the real estate in an appropriate manner and perform all other actions agreed in the mediation contract that go beyond the usual presentation, for which he is entitled to special, pre-specified costs;
5) enable inspection of real estate;
6) mediate in negotiations and try to reach the conclusion of the contract;
7) keep data on the principal’s personality and, upon the principal’s written order, keep as a business secret data on the real estate in connection with the sale or lease of which he mediates, or in connection with that immovable property or the business for which he mediates;
8) inform the principal about all circumstances of importance for the work in question that are known to him or must be known to him.
Mediation record
Article 17
The mediator keeps records of the mediation.
The records from paragraph 1 of this article contain data on mediation contracts from Article 15 of this law and submediation contracts from Article 29 of this law, and in particular data about the principal, the real estate whose turnover or lease is the subject of the mediation, the outcome of the mediation and the mediation fees.
Advertising
Article 18
When advertising in connection with the sale or lease of immovable property that is the subject of mediation, in the media, in its business premises or in other places where advertising in connection with the sale or lease of immovable property is permitted, in addition to information about its business, the intermediary is obliged to to the name and number under which it is entered in the Register of Intermediaries, advertises data on the price, location, area and structure of the real estate.
It is prohibited to advertise in connection with the sale or lease of real estate for which the broker has not concluded an agreement on mediation or a contract on sub-mediation.
Attention in legal transactions
Article 19
In carrying out mediation, i.e. other actions related to the work that is the subject of mediation, the mediator must act with the care of a good businessman.
The right to intermediary compensation
Article 20
The mediator acquires the right to the mediation fee at the moment of concluding the contract for which he mediated, unless the mediator and the client have agreed that the right to mediation fee is acquired at the moment of the conclusion of the preliminary contract for which the mediator mediated.
The mediator cannot demand partial payment of the mediation fee in advance, that is, before the conclusion of the pre-contract, that is, the contract for which he mediated in accordance with paragraph 1 of this article.
The costs of additional services related to the work that is the subject of mediation may be charged by the mediator, if this is expressly stated in the mediation contract.
After the termination of the contract on mediation, the mediator has the right to compensation in accordance with the provisions of Article 27, para. 5, 6 and 7 of this law, unless otherwise agreed.
An intermediary or a sub-mediator does not have the right to compensation for mediation if he concludes a contract with the principal on his own behalf, as a contractual party, that is the subject of mediation, i.e. if such a contract with the principal is concluded by a person who has passed a professional exam and performs mediation activities for the intermediary or sub-mediator .
Account for intermediary services
Article 21
The mediator can issue an invoice for the services rendered in accordance with the mediation agreement.
Authorization to conclude a contract on the sale or lease of real estate
Article 22
The intermediary can, when he is specially authorized to do so, conclude a preliminary contract, i.e. a contract on the transfer of real estate, or a contract on the lease of real estate, in the name and on behalf of the principal.
The authorization from paragraph 1 of this article is issued separately in the form prescribed by law.
Obligations of the principal
Article 23
Depending on the type of mediated legal work, the principal undertakes to perform the following:
1) inform the mediator about all the circumstances that are important for mediation;
2) give the mediator the originals of the documents that prove his right to the real estate that is the subject of the transaction, that is, warn the mediator about all registered and unregistered encumbrances that exist on the real estate;
3) enable the intermediary and the person interested in concluding a legal transaction to view the real estate, in the agreed manner and at the agreed time;
4) inform the intermediary about all important data about the real estate, which in particular includes accurate data about the price, location, structure of the real estate, etc.;
5) hand over to the mediator certified copies of all documents proving the right of ownership to the immovable property that is the subject of mediation, when concluding the mediated legal transaction – pre-contract or main contract related to the sale or lease of immovable property;
6) pay the mediator the agreed mediation fee, and if it is separately agreed, compensate the mediator for other costs incurred during the mediation;
7) inform the intermediary about all changes related to the mediated business, especially about changes related to real estate rights, terms and price, all within three days from the day of the change.
If the principal gives an order for mediation or concludes a mediation agreement contrary to the principle of conscientiousness and honesty, he is obliged to compensate the costs incurred during the mediation, which cannot exceed the agreed mediation fee for the mediated work.
Nullity of the obligation to enter into negotiations
Article 24
The principal is not obliged to enter into negotiations for the conclusion of the mediated deal with the person found by the mediator, nor to conclude the mediated legal deal, and the provision of the mediation contract, which stipulates otherwise, is null and void.
Anonymous originator
Article 25
An intermediary who performs mediation activities for a principal who wishes to remain anonymous, is obliged not to reveal the identity of the principal, in accordance with the terms of the mediation contract, and at the latest until the conclusion of the mediated legal transaction.
The clause on the anonymous principal is expressly agreed.
Exclusive mediation
Article 26
The principal can oblige by explicitly entering into an exclusive mediation clause that he will not hire another mediator for mediation in connection with a certain real estate within the agreed period.
If, during the validity of the clause on exclusive mediation, the principal concludes a legal transaction related to the real estate referred to in paragraph 1 of this article, which was mediated by another mediator, he is obliged to pay the mediator with whom he contracted exclusive mediation in the name of damages the amount of the agreed mediation fee.
The mediator is obliged to specifically warn the principal about the meaning and legal consequences of the clause on exclusive mediation from paragraph 1 of this article.
Termination of validity of mediation agreement
Article 27
The contract on mediation ceases to produce legal effects upon the expiration of the term for which it was concluded, the conclusion of the legal transaction for which it was mediated or cancellation in written or electronic form, in accordance with the law governing electronic commerce.
Unless otherwise agreed, the mediation contract is concluded for one year.
The termination of the mediation contract does not have to be explained and has legal effect at the moment of delivery to the mediator.
The provisions of the law regulating the obligation relations in the part related to the revocation of the mediation order shall be applied accordingly to the cancellation of the mediation agreement.
The principal is obliged to compensate the intermediary for the incurred costs only if it is expressly agreed that they will be borne by the principal, regardless of the success of the mediation.
If, after the termination of the mediation contract based on the principal’s termination, and within a period of no longer than one month from the termination of the contract, the principal concludes a legal transaction that is a direct consequence of the mediator’s mediation before the termination of the mediation contract, he is obliged to pay the mediator the agreed mediation fee as a whole, unless otherwise agreed in the mediation contract.
If, under the conditions and within the time limit referred to in paragraph 6 of this article, the principal concludes a legal transaction that is to a significant extent the result of the mediator’s mediation before the termination of the mediation contract, he is obliged to pay the mediator a proportionate mediation fee, unless otherwise agreed in the mediation contract.
General business conditions
Article 28
The intermediary is obliged to determine the general conditions of business in accordance with this law and other regulations.
The general terms and conditions of business include, in particular:
1) the amount of the intermediary fee, that is, the method of determining the amount of the intermediary fee;
2) a description of the work that the mediator is obliged to perform in exchange for the mediation fee;
3) type and amount of costs for additional services.
The mediator is obliged to prominently display his general terms of business, which are an integral part of the mediation contract, in his business premises.
Agreement on submediation
Article 29
An intermediary may transfer his rights and obligations from the mediation agreement, in whole or in part, to another intermediary through a submediation agreement, if the principal has expressly agreed to this in the mediation agreement.
The contract on submediation is concluded in written or electronic form in accordance with the law governing electronic commerce.
The contract on submediation contains the manner and conditions of the transfer of rights and obligations from paragraph 1 of this article, the payment of the mediation fee and the termination of the contract.
The mediator is obliged to submit a copy of the contract on submediation to the principal within three days from the date of conclusion of the contract.
Powers
Article 30
The Minister prescribes in more detail:
1) the form, content and manner of keeping the Register of Intermediaries referred to in Article 3, paragraph 1, point 3) of this law;
2) the application form for registration in the Register of Intermediaries from Article 4, Paragraph 1 of this Law;
3) form of extract from the Register of Intermediaries from Article 9 of this law;
4) content, form and method of keeping records from Article 11, paragraph 4;
5) minimum technical requirements for space and equipment from Article 14 of this law;
6) form, content, method of keeping and term of keeping records on mediation from Article 17 of this law.
The minister prescribes in more detail, with the prior approval of the minister responsible for financial affairs, the program and method of conducting the professional exam, the amount of the fee for taking the professional exam, the amount of compensation for the work of the commission members, as well as the content and form of the certificate of passing the professional exam from Article 11 of this of the law.
IV SUPERVISION
Article 31
Supervision over the implementation of this law and regulations adopted on the basis of this law is carried out by the ministry.
Inspectional supervision is carried out by the ministry through the market inspector, based on the powers prescribed by the law regulating trade.
V PENAL PROVISIONS
Violations and protective measures
Article 32
A legal entity, an entrepreneur, a natural person, or a responsible person in a legal entity, shall be fined for a misdemeanor in the amount of two to five times the value of the usual mediation fee, if they perform mediation contrary to the prohibition from Article 12, paragraph 1 of this law.
In addition to the misdemeanor penalty from paragraph 1 of this article, a legal entity, entrepreneur or natural person may also be imposed a protective measure of banning mediation in traffic, i.e. renting real estate for one to three years, as well as a protective measure of public publication of the verdict.
Article 33
A legal entity will be fined from 100,000.00 to 500,000.00 dinars for a misdemeanor if:
1) does not report or fails to report the change of data in a timely manner in accordance with Article 8, paragraph 1 of this law;
2) employs or hires a person outside of employment for mediation activities contrary to the prohibition prescribed in Article 12, paragraph 2 of this law;
3) operates in a business premises that does not meet the requirements of Article 14 of this law;
4) performs mediation without a concluded mediation agreement in accordance with Article 15 of this law;
5) does not keep, or does not keep accurate and complete records of mediation in accordance with Article 17 of this law;
6) post an ad related to the sale or lease of real estate contrary to the provisions of Article 18 of this law;
7) obtain intermediary compensation contrary to the provisions of Article 20, para. 2 and 5 of this law;
8) does not act in accordance with the obligation prescribed in Article 26, paragraph 3 of this law;
9) does not highlight the general conditions of business in the manner prescribed in Article 28, paragraph 3 of this law.
For actions from paragraph 1 of this article, the entrepreneur will be fined from 50,000.00 to 500,000.00 dinars.
For the actions referred to in paragraph 1 of this article, the responsible person in the legal entity will be fined from 10,000.00 to 100,000.00 dinars.
In addition to the misdemeanor penalty from paragraph 1, item 2), 4) and 5) of this article, a legal person or an entrepreneur may also be imposed a protective measure of prohibition of intermediation in traffic, i.e. real estate lease for one to two years, as well as a protective measure of public publication of the verdict.
VI TRANSITIONAL AND FINAL PROVISION
Article 34
By-laws that are adopted on the basis of the authorization from this law will be adopted within six months from the date of entry into force of the law.
Article 35
This law enters into force on the eighth day from the date of its publication in the “Official Gazette of the Republic of Serbia”, except for the provisions of Article 11, which apply after 12 months from the date of entry into force of this law and the provisions of Art. 4-10. and Article 13, which are applied after 18 months from the date of entry into force of this law.