Obligations of the intermediary

The obligations of real estate intermediaries (real estate agencies) in Serbia are regulated by the Law on Mediation in Real Estate Transactions and Leasing ("Official Gazette of RS", no. 95/2013 and 139/2014). The intermediary must be registered in the Intermediary Registry at the Ministry of Trade and fulfill certain professional, legal, and contractual obligations.

📌 Basic obligations of intermediaries (Agent/Agency):

1. Conclusion of mediation contract
   • Mediation is permitted exclusively based on a written contract with the principal (owner or buyer/tenant).
   • The contract must contain all mandatory elements: party details, commission amount, contract duration, rights and obligations, etc.
2. Verification of property documentation
   • Obligated to check the legal status of the property:
     • Whether it's registered
     • Whether there are encumbrances or restrictions (liens, lawsuits, mortgages)
     • Whether there are ongoing disputes
   • If aware of irregularities, must warn the client.
3. Client information
   • Must inform the client about market conditions, rights and obligations arising from purchase, sale or lease.
4. Organization of property viewings
   • Must enable and organize property viewings, attend when necessary and safeguard the client's property.
5. Data confidentiality
   • Disclosure of information to third parties is prohibited without client consent (unless otherwise specified by law).
6. Compliance with laws and ethics
   • The intermediary must have:
     • work permit (license),
     • employed responsible person with passed professional exam,
     • concluded professional liability insurance.

📄 Additional terms and obligations

✅ The agency must:

• Be registered with the Business Registers Agency (APR) for mediation activities.
• Be listed in the Intermediary Registry (with the Ministry of Trade).
• Have mandatory liability insurance with minimum coverage of €15,000.
• Comply with provisions of the Code of Conduct for Intermediaries.

❌ Prohibited:

• Mediating without a contract.
• Misleading clients.
• Charging commission if mediation didn't lead to contract conclusion, unless otherwise agreed.

📌 Commission

• Freely negotiated, but typically 2% to 4% of property value (shared between buyer and seller).
• A fixed amount can be agreed, especially for leases.

🛑 Penalties for illegal operations

• For mediation without license and registration, monetary fines and work bans are prescribed.
• Also, clients can sue the intermediary for damages if negligence occurs.