Payment Terms

1. The Sold Item

1.1. Consent for Transactions

The Buyer agrees to purchase rent claims from the Seller in accordance with the terms of this agreement.

1.2. Origin of Claims

The purchase of a rent claim is at the Seller’s request, and the claim originates from a lease agreement concerning the Seller's property or their principal (contract number or identifier).

1.3. Decision on Purchase

Purchases will only occur upon the Seller's request and upon fulfillment of the conditions set forth in this agreement.

1.4. Seller’s Right to Reject Purchases

The Buyer is unilaterally entitled to accept or reject the purchase of claims, whether the purchase involves a single claim, a collection of claims, or a claim against a specific payer.

1.5. Limitations on Claim Purchases

Claim purchases are based on the lease agreement, but the Buyer ceases to purchase claims automatically if the underlying rental guarantee or insurance is lower than the unpaid purchased claims, i.e., the tenant’s arrears under the lease agreement for purchased claims must not exceed the guarantee under the contract.

1.6. Condition Regarding Rental Guarantee

If the rental guarantee lapses, this agreement becomes void.

2. Conditions for Claim Purchases

2.1. Buyer’s Conditions

The Buyer sets the following conditions for the purchase of a claim:

1. The Seller has lawful authority to demand payment from the payer under their lease agreement.
2. No restrictions exist on the Seller's right to sell the claim, including legal or contractual limitations on assignment of the claim to the Buyer.
3. The claim has not been forfeited, waived, or partially reduced, such as by lowering or granting a discount on the claim amount.
4. The Seller is unaware of any defenses the payer may have regarding the existence or content of the claim, its characteristics, or other related matters.
5. All information provided by the Seller in the request to the Buyer regarding the purchase of the claim is accurate in content and form.
6. No dispute exists regarding the purchase price of the claim, and the Seller is unaware of anything that could lead to a disagreement between the Buyer and Seller.
7. No purchased claim under this agreement has previously been assigned, given, sold, pledged, encumbered, or otherwise disposed of to anyone other than the Buyer.
8. No third party has outstanding rights to purchase or obtain, via subscription, pledge, or otherwise, the claims sold by the Seller to the Buyer.

2.2. Seller’s Obligations

The Seller further guarantees the following to the Buyer while this agreement is in force:

1. No claims by the Seller against the payer are overdue; i.e., they have not been unpaid on the due date, nor has the payer arranged for extended or additional payment terms.
2. The payer has not neglected other obligations toward the Seller regarding the claim.
3. The Seller has no information on the financial status or payment ability of the payer indicating they cannot fulfill obligations when claims are due.
4. The payer has no right to offset the claim, nor can they demand a discount, damages, or reduction of the claim.
5. The Seller will inform the Buyer of anything that may prevent the payer from fulfilling obligations to the Buyer, including potential defenses.

3. Claim Amount and Purchase

3.1. Maximum Amount

The Buyer determines the maximum amount of claims they wish to acquire per individual payer.

3.2. Purchase Price

Information regarding the purchase price, fees, and other charges for claim purchases, including Buyer’s services, is presented in the Buyer’s offer accepted by the Seller for each transaction, as well as in the Buyer’s price list, as reviewed by the Seller.

3.3

The Buyer pays the claim in full, minus the discount, for the agreed purchase amount. The purchase amount equals the claim value minus the discount.

Example illustrating the payment flow for claim purchase:

• Claim Value: 200,000 ISK
• Buyer’s Fee (e.g., 3.5%): 7,000 ISK
• Payout Amount: 193,000 ISK

3.4

When payment from the payer is received, the Buyer shall first allocate the amount to settle the respective purchased claim.

4. Guarantees and Collection

4.1. Buyer’s Duties

The Buyer shall notify the Seller of unpaid invoices and claims, and of any payers not accepted by the Buyer.

4.2. Right to Enforce Rental Guarantee

The Seller agrees to grant the Buyer the right to claim the tenant’s rental guarantee, of whatever nature, in the event of the payer’s default.

4.3. Collection Restrictions

The Buyer will ensure legal collection is not initiated without consultation with the Seller, but legal collection does not require the Seller’s consent. The Seller shall pay all costs and fees of the collector, including initial and intermediate collection costs, as well as costs for legal collection, provided collection costs cannot be recovered from the payer (tenant).

4.4. Overpaid Claim Purchases

If payment is mistakenly received by the Seller for an assigned claim, the Seller shall immediately and without further prompting notify the Buyer and remit the payment in the manner determined by the Buyer. The Seller shall also notify the payer that future payments under the lease agreement should be made to the Buyer.

5. Settlement of the Agreement

5.1. Seller’s Account

The payout under this agreement shall be paid to the Seller’s account: Bank HB, Account Number.