General Terms and Conditions

for mediation in real estate transactions by the real estate company Vila Portorož, real estate transactions LLC.

 

1.        INTRODUCTORY PROVISIONS

 

The General Terms and Conditions for mediation and professional guidance through processes in real estate transactions (hereinafter: General Terms) regulate legal relationships between the real estate company and the client.

1.2            The General Terms are an integral part of every mediation contract concluded by the real estate company with the client. An integral part of each mediation contract are also a copy of the insurance policy and the price list of the real estate company's services.

1.3            The real estate company has committed to adhering to the Code of Good Business Practices in Real Estate Transactions, adopted on 30.08.2011 by the Association of Real Estate Agencies at the Chamber of Commerce and Industry of Slovenia – Real Estate Chamber (https://zdnp.gzs.si/vsebina/Kodeks/Kodeks).

 

2.        MEANING OF TERMS

 

In these General Terms, the following terms have the following meanings:

  • Real Estate Agent is a natural person who performs mediation tasks for the real estate company based on an employment contract or other legal basis, with a license from the competent ministry to perform mediation tasks and is registered in the directory of real estate agents at the competent ministry.
  • Mediation in real estate transactions means carrying out the registered gainful activity of real estate mediation, where individual mediation tasks in real estate transactions include all activities in establishing contact between the client and a third party, as well as in negotiations and preparations for the conclusion of contracts concerning a specific real estate property, such as a purchase, sale, lease, rental, or other contract for a specific real estate property.
  • Client is a natural or legal person who concludes a mediation contract with the real estate company, and for whom the real estate company performs mediation services in real estate transactions.
  • Third Party is a person whom the real estate company tries to bring into contact with the client to negotiate for the conclusion of a contract, the subject of which is real estate.
  • Client's close family members are the client's spouse or a person with whom the client lives in a non-marital community, in accordance with the regulations on marriage and family relations, their children or adoptees, parents and adoptive parents, and persons whom the client is legally obliged to support.
  • Mediation Contract is a written contract concluded between the real estate company and the client, whereby the real estate company undertakes to find and bring into contact the client with a third party to negotiate for the conclusion of a specific contract, the subject of which is real estate, and the client undertakes to pay the real estate company for the mediation if the contract is concluded.
  • A client of the service can also be a buyer-seeker of real estate.
  • A contract, the subject of which is real estate, is a purchase, sale, lease, rental, or other contract for a specific real estate property, in the conclusion of which the real estate company mediates.
  • Real estate is a property defined in the mediation contract.

 

3.        MEDIATION SERVICES

 

3.1 The real estate company provides mediation and professional guidance services in the processes of:

  • selling or buying real estate,
  • leasing, renting, or
  • other contracts involving real estate.

3.2 The mediation services listed in point 3.1 include, in particular, the following tasks performed by the real estate company for the client, if and to the extent dictated by the circumstances of each transaction:

  • acceptance of the mediation order for legal transactions involving a specific real estate property, such as a sale, lease, or other contract for a specific real estate property;
  • verifying the identity of the client by reviewing personal documents and public records;
  • obtaining contact information about the client to facilitate contact with a third party (personal name/company name, address/headquarters, phone, fax, email, etc.);
  • obtaining personal or identification data of the client or third party for the preparation of a contract involving real estate (personal name/company name, address/headquarters, registration number, tax number, personal account number or transaction account number);
  • preparing a mediation contract for real estate transactions specifying the scope of mediation services, proposed mediation fees, payment terms, and other components in accordance with the law governing real estate mediation;
  • providing explanations to the client and third party about market conditions relevant to determining the price of real estate or rent;
  • informing the client and third party about the content of regulations important for the valid conclusion of the contract being mediated;
  • informing the client and third party about the amount and type of tax obligations, possible notary fees, registration fees, and other costs associated with concluding the contract;
  • determining the actual condition of the real estate through careful inspection;
  • determining the information and telecommunication and utility infrastructure of the real estate, reviewing the condition of the surroundings, and identifying other characteristics of the real estate;
  • determining the legal status of the real estate based on data from official records and public books (especially the land registry, land cadastre, building cadastre, or, if the property is not registered in the land registry, based on documents proving ownership, other real rights, and other legal facts);
  • informing the client and third parties in writing about obvious physical defects and legal defects found during the inspection of the actual and legal condition of the real estate;
  • informing the client and third party about the risks arising from the unresolved legal status of the real estate, especially third-party rights on the property, public law restrictions, etc.;
  • preparing an appropriate advertising strategy and carrying out standard real estate advertising;
  • informing the third party about the real estate and its key features, organizing and leading inspections, arranging meetings between the client and the third party, providing contact information defined in the mediation contract, and facilitating serious negotiations for the conclusion of a contract involving real estate;
  • ongoing and up-to-date telephone, written, and online communication with the client and third parties, and promptly informing the client about the performed mediation services in real estate transactions;
  • participating in negotiations for the conclusion of the contract being mediated by the real estate company.

3.3  The mediation fee covers the costs for performing the tasks listed in point 3.2.

3.4  After a written notification from the real estate company about contact with a third party, the client must notify the real estate company in writing within three (3) working days if a competitive (real estate) company has previously brought the same third party into contact with the client. Otherwise, it is considered that the real estate company has brought the client into contact with the third party.

3.5     The same applies if the client finds and contacts the third party on their own.

 

4.        ADDITIONAL SERVICES

 

4.1. The real estate company may provide additional services for the client if agreed with the client in the mediation contract or with a special order that supplements the mediation contract.

4.2  Additional services include, but are not limited to:

  • preparing the contract mediated by the agent (sale, lease, rental, or other) by a university graduate lawyer, attorney, or notary;
  • representing in procedures for obtaining approvals, certificates, permits, and other documents necessary for concluding a contract involving real estate;
  • organizing the valuation of the real estate;
  • organizing the preparation of an energy performance certificate for the real estate;
  • representing in tax proceedings;
  • resolving the legal status of the real estate;
  • holding funds in a fiduciary account;
  • holding documents;
  • storing visual material;
  • holding funds in a fiduciary account and managing them carefully in accordance with the authorizations of the contracting parties;
  • preparing a handover protocol upon taking over or handing over real estate;
  • informing the property manager and suppliers about the change of owner or payer;

4.3 The prices of additional services are specified in the price list of the real estate company or the price list of an external contractor.

4.4 The real estate company is entitled to payment for additional services provided even if the contract involving the real estate was not concluded.

 

5.         PAYMENT FOR MEDIATION

 

The amount of payment for mediation is agreed upon by the real estate company and the client with the mediation contract.

5.2   Payment for mediation in the case of purchase or sale of the same real estate amounts to a maximum of 4% of the contract price. However, this limit does not apply when the contract value of the real estate is less than 10,000.00 EUR.

5.3 Payment for mediation in the case of leasing the same real estate amounts to a maximum of 4% of the contract value, but no more than the amount of one month's rent and no less than 150 euros, with the limitation not applying when the client is a business entity.

The contract value is the product of the monthly rent amount and the number of months for which the real estate is leased.

5.4 The payment for mediation does not include value-added tax (VAT); therefore, upon invoicing, the payment for mediation is increased by the amount of VAT.

5.5   If the real estate company does not perform any of the tasks listed in point 3 of these General Terms because it is not necessary due to the circumstances of the particular case or at the express wish of the client, the client does not have the right to demand a reduction in the payment for mediation.

5.6   The payment for mediation does not include notary services, taxes, court and administrative fees, fees for certificates and permits necessary for the valid conclusion of the contract, and the costs of additional services listed in point 4 of these General Terms.

5.7 The real estate company acquires the right to payment for mediation when the contract, for the conclusion of which it mediated, is signed.

5.8 The real estate company cannot demand even partial payment for mediation before the contract involving the real estate is signed.

5.9   The real estate company invoices the client for the payment for mediation based on the signed mediation contract.

5.10 The real estate company is entitled to the full payment even if the client or a third party later withdraws from an already concluded contract involving the real estate.

5.11  The real estate company and the client agree that the real estate company is entitled to payment for mediation even when the client finds a third party themselves with whom they conclude a contract that was the subject of mediation. The payment for mediation from the previous sentence must be based on the tasks already performed. If the third party is a close family member of the client, the client is obliged to pay the agreed mediation fee in full.

5.12  The real estate company is entitled to payment for mediation even in cases where the client or their close family member concludes a contract involving the real estate with a third party whom the real estate company brought into contact with the client, and this contract is signed within six months after the termination of the mediation contract.

 

6.           REIMBURSEMENT OF COSTS

 

6.1 If the real estate company is not entitled to payment for mediation, it may agree with the client in the mediation contract for reimbursement of actual costs incurred in connection with the mediation services if the client:

  • establishes contact with a third party themselves with whom they conclude a real estate contract,
  • concludes a real estate contract with the mediation of another real estate company,
  • unilaterally terminates the mediation contract before the end of the agreed period.

6.2 The amount of actual costs charged by the real estate company to clients for real estate mediation services may not exceed 150 euros excluding VAT.

 

7.         PROTECTION OF CLIENT'S AND THIRD PARTY'S INTERESTS

 

7.1 The real estate company must appropriately inform the client about all circumstances relevant to the fulfillment of the client's interests when providing mediation services in real estate transactions.

7.2 The real estate company must also appropriately protect the interests of the third party brought into contact with the client for contract negotiations involving real estate and act impartially, except when explicitly agreed with the client to represent only the client's interests. When the real estate company, based on an agreement with the client or investor, exclusively represents the client's interests in mediation, it must clearly and in writing inform the third party brought into contact with the client that it is acting as a representative and not as a mediator.

7.3 When the real estate company provides mediation services for a client who wishes to remain anonymous, the real estate company is not obliged to disclose the client's identity to the third party wishing to conclude a legal transaction with the client until the contract involving real estate is signed.

 

8.         FIDUCIARY ACCOUNT

 

8.1 The real estate company may accept from the client or third party, in connection with the execution of the contract involving real estate, custody of funds if it has a fiduciary account agreement with a bank and if authorized in writing by the client or third party.

 

9.         LIABILITY INSURANCE

 

9.1 The real estate company has professional liability insurance for damages. The insurance covers liability for damages that might occur to the client or a third party due to a breach of the mediation contract in real estate transactions within the territory of the Republic of Slovenia. The name of the insurance company, the insurance policy number, and the insured amount are specified in the mediation contract.

 

10.         EXCLUSIVE MEDIATION CONTRACT

 

10.1. In the event that the Client and the Real Estate Agency enter into an exclusive agreement for the mediation of a specific property, the Client, during the validity period of the agreement, must not enter into a mediation agreement with a competing real estate agency or advertise or sell the same property through any third party.

 

11.         TRANSFER OF MEDIATION SERVICES

 

11.1 The Real Estate Agency may, by agreement with the Client, transfer the mediation services to other real estate agencies.

11.2 In the event of the transfer of mediation services to another real estate agency, the Client remains in a contractual relationship only with the Real Estate Agency with which the mediation agreement was concluded, and the Real Estate Agency must provide the Client with a list of real estate agencies to which the order is being transferred.

 

12.         OTHER OBLIGATIONS OF THE CLIENT

 

12.1  The Client must provide the Real Estate Agency with all available documentation related to the property subject to mediation (in particular, proof of ownership, land registry extract, contracts, building permit, location information, and all other documents).

12.2  The Client guarantees the truthfulness, accuracy, and completeness of the provided data or documentation.

12.3  The Client must immediately, and no later than within 8 (eight) days of any change, notify the Real Estate Agency in writing of any changes in their interests (sale price, move-in date of the property, etc.) and any changes in the actual or legal status of the property.

12.4  In the event that the Client markets the property themselves or through competing real estate agencies, the Client must market the property under the same conditions as agreed in the Mediation Agreement;

12.5  In the event that the Client, either themselves or through a competing real estate agency, finds a third party with whom they enter into a contract or pre-contract, the subject of which is the property, the Client must immediately, and no later than within 8 (eight) days of the conclusion of such contract or pre-contract, notify the Real Estate Agency in writing and provide a copy of the contract.

 

13.               IMPROPER CONDUCT OF THE CLIENT

 

13.1  The Client is obliged to compensate the Real Estate Agency for all damages incurred by the Real Estate Agency due to the Client's breach of contractual obligations.

13.2  The following actions by the Client are considered particularly serious breaches of the Mediation Agreement:

  • the Client, without justified reasons, prevents the Real Estate Agency from conducting property viewings;
  • the Client breaches the exclusivity agreement of the Mediation Agreement;
  • the Client markets the property themselves or through other real estate agencies under more favorable conditions than those agreed in the Mediation Agreement;
  • the Client fails to notify or does not notify the Real Estate Agency in a timely manner of the conclusion of a contract or pre-contract, the subject of which is the property, with a third party found by themselves, or fails to provide or does not provide within the deadline a copy of the contract, the subject of which is the property;
  • the Client, contrary to good faith and fair dealing, does not proceed with negotiations for the conclusion of a contract or without justified reason refuses to conclude a contract, the subject of which is the property, with a third party introduced by the Real Estate Agency;
  • the Client discloses confidential information and data to third parties that are considered business secrets.

 

14.       RIGHT TO OBTAIN DATA

 

14.1  In the event that the Client withdraws from the Mediation Agreement or does not conclude a contract, the subject of which is the property, the Real Estate Agency may inquire about any potentially concluded contract, the subject of which is the property.

 

15.       OBLIGATIONS UNDER THE ANTI-MONEY LAUNDERING AND TERRORIST FINANCING ACT

 

15.1.  In accordance with the Anti-Money Laundering and Terrorist Financing Act, the Real Estate Agency, when establishing business relationships and conducting transactions above the legally prescribed amount and in other cases specified by regulations, must conduct a client check, which includes:

  • identification and verification of the client's identity 
  • identification of the actual owner of the client, if the client is a legal entity;
  • obtaining data on the purpose and intended nature of the business relationship or transaction and other data required by law;
  • regular diligent monitoring of the business activities conducted by the client with the Real Estate Agency.

15.2 The Client is aware that the Real Estate Agency, for the purpose of fulfilling its obligations under the previous point, has the right to obtain and verify (including by inspecting personal documents) the following personal data of the client and the legal representative of the client:

  • full name,
  • address of permanent or temporary residence,
  • date and place of birth,
  • tax identification number,
  • type and issuing authority of the official personal document;

 

16.  PROTECTION, PROCESSING, AND USE OF PERSONAL AND CONFIDENTIAL DATA

 

All information and data obtained by the Client from the Real Estate Agency are confidential and considered business secrets, except for information and data that are publicly available.

16.1.        For the purpose of fulfilling the obligations under the Mediation Agreement and the obligations imposed on the Real Estate Agency by the Anti-Money Laundering and Terrorist Financing Act, the Real Estate Agency may, in accordance with the regulations governing personal identification cards and passports, inspect and copy data from the personal document (full name, address of permanent or temporary residence, date and place of birth, tax identification number, type and issuing authority of the official personal document) 

16.2.        When the nature of a specific transaction explicitly requires it (e.g., verification of the Client's or a third party's signature, etc.), the Real Estate Agency, based on the written consent of the document holder specifying the purpose in advance, may photocopy the holder's personal document.

16.3.        The Real Estate Agency must mark on the photocopy of the personal document:

  • that it is a photocopy,
  • its name,
  • the explicitly specified purpose of the photocopying,
  • the legal basis for photocopying – clearly visible written consent of the document holder.

16.4.        The Real Estate Agency undertakes not to further copy the Client's personal document. The Real Estate Agency must not store copies of the personal document in electronic form.

16.5.        The Real Estate Agency undertakes to protect all personal data in accordance with the regulations on personal data protection. All personal data will be used solely for the purpose of concluding, executing, amending, and terminating the Mediation Agreement and any contract related to the property. For any use of personal data for other purposes, the Real Estate Agency must obtain the Client's prior written consent.

16.6.        The individual to whom the personal data pertains has the right to:

  • obtain confirmation from the Real Estate Agency as to whether or not personal data concerning them is being processed,
  • access the personal data and the purpose of the processing, the categories of personal data concerned;
  • the recipients or categories of recipients, in third countries or international organizations;
  • the envisaged period for which the personal data will be stored or the criteria used to determine that period.

16.7.        The individual to whom the personal data pertains has the right to:

  • request the Real Estate Agency to rectify or erase personal data,
  • request the Real Estate Agency to restrict the processing of personal data,
  • object to processing,
  • request the Real Estate Agency to correct inaccurate personal data without undue delay,
  • request the Real Estate Agency to complete incomplete personal data,
  • have personal data transferred directly from one Real Estate Agency to another where technically feasible,
  • lodge a complaint with a supervisory authority.

16.8.        Where personal data is transferred to a third country or international organization, the individual to whom the personal data pertains has the right to be informed of the appropriate safeguards relating to the transfer.

16.9.        Where personal data is processed for direct marketing purposes, the individual to whom the personal data pertains has the right to object at any time to the processing of personal data concerning them for such marketing, including profiling to the extent that it is related to such direct marketing.

 

17.         DURATION OF THE AGREEMENT AND TERMINATION OF THE AGREEMENT

 

17.1 The Mediation Agreement is concluded for a fixed period of nine (9) months, unless the parties agree on a shorter period.

17.2 After the expiration of the period mentioned in the previous point, the parties may conclude a new Mediation Agreement.

17.3  The Agreement ceases to be valid upon the expiration of the term, with the termination of the Mediation Agreement, with the fulfillment of the Mediation Agreement, and in other cases specified by law.

17.4 The parties may terminate the Mediation Agreement at any time, provided that it is not contrary to good faith and fair dealing. The termination must be submitted in writing.

 

18.       APPLICABLE LAW

 

18.1 The Real Estate Mediation Act and the Consumer Protection Act shall apply to the interpretation of the Mediation Agreement and the General Terms and Conditions.

 

19.            DISPUTE RESOLUTION

 

19.1 Any disputes arising from or in connection with this Mediation Agreement shall be resolved amicably by the contracting parties.

19.2 If an amicable resolution of the dispute is not possible, in cases involving consumer contracts, the competent court is the court in Koper.

19.3  If an amicable resolution of the dispute is not possible, in cases involving contracts between business entities, the parties agree that any disagreement, dispute, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be finally resolved by a panel of three arbitrators or a sole arbitrator appointed in accordance with the Rules of Arbitration Procedure of the Permanent Arbitration at the Chamber of Commerce and Industry of Slovenia.

 

20. VALIDITY AND PUBLICATION OF GENERAL TERMS AND CONDITIONS

 

20.1   The General Terms and Conditions are valid from 03.01.2023.

20.2 The currently valid General Terms and Conditions are published at the premises of the Real Estate Agency, in a visible location, and on the website Obala 114b, 6320 Portorož, www.vila-portoroz.si.

 

In Lucija, 03.01.2023

                                                                                                                              VILA PORTOROŽ D.O.O.

                                                                                                                             Director Vlasta Prešeren  

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