In accordance with the Act on brokerage services in real estate transactions, the Agency P.M.C. 2009 d.o.o. from Split, Gajeva 18, PIN: 27071764184, operating commercially in the market under the name "Croatia Property Sales" (herein after: Brokerage agency) adopts these:
GENERAL BUSINESS TERMS & CONDITIONS
I. GENERAL PROVISIONS
Article 1.
These General Business Terms & Conditions define and govern the business relationship between the Agency acting as brokerage agent in real estate transactions and the Client (natural or legal person).
By signing the Brokerage services contract, the Client confirms to be informed about and to consent with the provisions of these General Business Terms & Conditions.
II. GENERAL CONTRACT TERMS
Article 2.
The general contract terms are the contractual provisions that have been drafted for a number of contracts that one contracting party (drafting party) proposes the other contracting party, prior or at the moment of execution of such contract, regardless whether these terms are contained in the standardized contract form or referred to by such contract.
Article 3.
These General Business Terms & Conditions define the conditions and terms of delivering brokerage services in real estate transactions, execution of contracts on brokerage services in real estate transactions, the rights and duties of the Brokerage agency and the contracting parties in real estate transactions, the commission due for brokerage services rendered and the rights and duties in case of termination or cessation of the Brokerage service contract.
Definition of terms contained in these General Business Terms & Conditions
Article 4.
Individual terms in these General Business Terms & Conditions are defined by Civil obligations Act and shall have the following meaning:
1. A brokerage agency in real estate transactions is a licensed and registered company, an individual or a trade complying with the legal conditions to perform brokerage services in real estate transactions;
2. Brokerage services in real estate transactions are those activities performed by the Brokerage agency in a real estate transaction relating to establishing contact between the Client and a third person, assist in negotiations and preparations for execution of legal actions, subject of which is a specified real estate, i.e. purchase, sale, exchange, rent, lease, etc. of such real estate;
3. Real estate is a land plot of a certain surface area, together with everything that is inseparably connected with the surface or underground of such land plot, all in accordance with the provisions on General Rules on Ownership and other Material Rights;.
4. Client is a natural or legal person executing a written agreement on brokerage services with the Brokerage agency (seller, buyer, lesser, lessee and other possible participants in real estate transactions);
5. Third party is the person the Brokerage agency tries to introduce to and connect with the Client in a real estate transaction, for negotiation of execution of a legal transaction, subject of which is a specified real estate;
6. Establishing connection between parties is the business activity of the Brokerage agency, based on which two Clients or the Client and a third party are brought together. The Brokerage agency has particularly established a connection between a Client and a third party, if the Client was directly taken or properly instructed to view a specified real estate, a meeting was organized between the Client/Clients and/or third parties for negotiation of execution of a legal transaction relating to a real estate, the Client was notified about names, telephone numbers, fax numbers, emails of third parties that are authorized to execute such legal transaction or the Client was notified about the exact location of the individual real estate, regardless of the means of such notification.
III. BROKERAGE SERVICES CONTRACT IN REAL ESTATE TRANSACTIONS
Article 5.
(1) Based on the Brokerage services contract for real estate transactions, the Brokerage agency is obliged to find and establish a connection between the Client and a third party, for negotiation and execution of the legal transaction of transfer and assignment of specific rights over a real estate and the Client is obliged to compensate the Brokerage agency in form of a defined brokerage services commission, if such legal transaction is executed.
(2) The Brokerage services contract in real estate transactions is drafted in writing and usually signed for a period of 4 years, whereas it is automatically extended for the same period of time until the sale/purchase of a real estate or written termination of such contract by one of the contracting parties, unless otherwise agreed upon.
(3) If one of the parties wants to terminate a Brokerage services contract, such party must give such termination notice to the other party in writing.
(4) If not differently defined by these General Business Terms & Conditions, the mandatory relationship between the Brokerage agency and the Client is subject to provisions of the Act on brokerage services in real estate transactions and the Civil obligations Act.
(5) The contract signed between the Brokerage agency and the Client must contain all data of the Brokerage agency, the Client, the type and specification of services rendered by the Brokerage agency, the brokerage services commission and possible additional costs that may emerge when the Brokerage agency under agreement with the Client also renders other and additional services in regard to the services that are subject to brokerage.
(6) The Brokerage services contract in real estate transactions may also contain other data in relation to the subject of brokerage in the legal transaction (like specially defined terms and payment conditions for brokerage services, data on liability insurance, terms of payment of commission to the Brokerage agency and similar).
(7) Attached to the Brokerage services contract is the List of viewed real estates. The List of viewed real estates is drafted by the Brokerage agency and signed by the Client at the end of each such viewing.
Exclusive brokerage services
Article 6.
(1) By Brokerage services contract the Client may be obliged not to engage any other agency acting as brokerage agent in the subject legal transaction (exclusive brokerage rights), which duty must be clearly specified in the Brokerage services contract.
(2) If during the term of a Contract on exclusive brokerage the Client executes a legal transaction through another brokerage agency, without knowledge of the Brokerage agency and for a real estate that is subject of exclusive brokerage services by the Brokerage agency and the Brokerage services contract, the Client shall pay the Brokerage agency the contracted amount of commission/penalty and all other real costs suffered during performance of brokerage services (if such costs were explicitly contracted). If the Contract on exclusive brokerage services states so, the Client shall pay the Brokerage agency the contracted commission/penalty and all other real costs for the case the Client independently executes the legal transaction with a third party during the term of such Contract.
(3) When signing the Contract on exclusive brokerage services, the Brokerage agency must explicitly warn the Client about the meaning and legal consequences of such clause.
(4) The Contract of exclusive brokerage services executed for a limited time period ceases to be valid following expiration of the contracted term, in case the legal transaction contract for which it was executed is not signed during such period of time.
IV. REAL ESTATE OFFER
Article 7.
(1) Our offer is based on data and information received orally and/or in writing from the Client. There is a possibility of error in description and price of real estate, as well as the possibility that the published and offered real estate was already sold or leased, or that the owner of such offered real estate withdrew from the sale.
(2) The Brokerage agency withholds the right of error in description and price of real estate, as well as the possibility that the published and offered real estate was already sold or leased, or that the owner of such offered real estate withdrew from the sale.
(3) The Brokerage agency is not liable for errors and/or extremely negligent behavior of the seller. The Brokerage agency is not responsible for omissions or damages caused by limitations and/or possible hidden faults of the real estate that were known or must have been known to the Client, but the Brokerage agency was not informed about.
V. PRICE AND VALUE OF REAL ESTATE
Article 8.
Prices of real estates are in Euro, payable in Kuna, as per exchange rate specified in the contract by the contracting parties.
The value of a real estate established as principle amount of calculation of brokerage services commission also contains the value of movables, equipment and furniture in such real estate, in case their value is separated in a subject legal transaction.
VI. WAIVER OF LIABILITY
Article 9.
The Brokerage agency is not liable for mistakes and/or extreme negligent behavior of the Client, especially not for giving false, incorrect, untimely information, i.e. in case of withholding true, correct and up to date information on the real estate, i.e. the conditions of and subject of brokerage services.
VII. ASSIGNMENT OF REPRESENTATION RIGHTS
Article 10.
(1) The Brokerage contract does not authorize the Brokerage agency to assume execution and compliance with duties from a contract signed based on brokerage services rendered by the Brokerage agency.
(2) For such actions a written power of attorney must be issued.
(3) The Brokerage agency may extraordinarily execute a legal transaction of real estate sale on behalf and for the account of the Client only if the Client previously issued a special power of attorney.
VIII. RIGHTS AND DUTIES OF CONTRACTING PARTIES
Duties of Brokerage agency
Article 11.
By Brokerage services contract in real estate transactions, the Brokerage agency is obliged to perform the following:
(1) try to identify and bring a third party into contact with the Client for execution of the legal transaction that is subject to brokerage services;
(2) inform the Client about current market prices for comparable real estates;
(3) perform all necessary activities for presentation of the real estate in the market, publish the real estate in an adequate way and also execute all other activities agreed upon in the Brokerage services contract that are outside the standard scope of presentation, whereas the Brokerage agency is entitled to charge such additional service costs after previously presenting them to the Client;
(4) organize viewing of real estate;
(5) mediate in negotiations and assist in conclusion of (preliminary) sales contract;
(6) safeguard information and data on Client and in case of written instruction by Client, keep information that is subject to brokerage services or relate to such real estate or the legal transaction confidential;
(7) notify the Client about all relevant issues relating to the planned transaction that are known or must be known to the Brokerage agency.
Duties of Client
Article 12.
(1) By Brokerage services contract, the Client is especially obliged to:
1. notify the Brokerage agency about all conditions and circumstances of relevance to brokerage services and present accurate data on the real estate and if they exist, present the Brokerage agency the location, building and usage permits, i.e. all other documents as evidence of the legality of the real estate that is subject to brokerage services and also present the Brokerage agency evidence on compliance with duties and liabilities towards the third party;
2. present the Brokerage agency documents evidencing ownership title of the Client for the real estate, i.e. evidence of any other material rights over the real estate that is subject to the brokerage services contract and also warn the Brokerage agency about all registered or possible hidden liens and burdens existing on the real estate ;
3. enable the Brokerage agency and the third party that is interested to execute the legal transaction that is subject to brokerage services unobstructed viewing of the real estate;
4. notify the Brokerage agency about all significant data on the wanted real estate, especially a description and price range;
5. following execution of the legal transaction that is subject to brokerage services, i.e. a preliminary sales contract as obligation to sign a final sales contract and for the case when the Client and Brokerage agency agreed upon payment of the brokerage services commission when signing such preliminary sales contract, to pay the Brokerage agency the commission due, except if not differently contracted;
6. following execution of the legal transaction that is subject to brokerage services, i.e. a preliminary sales contract as obligation to sign a final sales contract and for the case when the Client and Brokerage agency agreed upon payment of the brokerage services commission when signing such preliminary sales contract, to pay the Brokerage agency the commission even if the Brokerage agency acted for both parties, the Client and the third party, regardless of the amount charged by the Brokerage agency from either party;
7. if explicitly agreed upon, compensate the Brokerage agency for costs suffered during the performance of brokerage services, which costs exceed the usual brokerage service costs;
8. notify the Brokerage agency in writing about all changes relating to the brokerage services contracted, especially about changes in ownership title over the real estate.
(2) The Client is not obliged to enter into negotiations regarding the contracted brokerage services and the subject legal transaction with a third party identified by the Brokerage agency, or to execute such legal transaction with such third party and any provision of a contract opposed to this right is void and invalid.
(3) The Client is liable for damages when not acting in good faith and in compliance with the principles of consciousness and fairness and must compensate and indemnify the Brokerage agency for all costs suffered by the Brokerage agency during the performance of brokerage services, whereas such costs may not exceed the amount of the commission contracted with the Brokerage agency for such brokerage services, nor be less than half of such contracted brokerage services commission.
(4) The commission for brokerage services does not include costs of legal counsel when signing the sales contract or the costs of drafting the application for registration of ownership title or costs of court and notary fees in relation to the individual legal actions involved.
IX. ENTITLEMENT OF BROKERAGE AGENCY TO CHARGE COMMISSION
Article 13.
(1) The Brokerage agency is entitled to charge commission for services rendered, even if such commission is not specifically contracted.
(2) In case the brokerage services commission is not defined by tariff or another legal statutory act, contract or standard of operations, it is to be determined based on efforts and services rendered by the Brokerage agency.
(3) The standard commission for brokerage services to be paid by the Client in sale of real estate amounts to 3% + VAT. Still, the commission amount primarily depends on the Brokerage services contract, i.e. the Order signed by both the Brokerage agency and the Client, where it can be defined at a lower or higher amount than the standard above.
(4) If a party offers the Brokerage agency directly a compensation for services and at free will, the Brokerage agency is entitled to accept such compensation, but only if it is not clearly disproportionate to the services performed, the result of such services and the financial status of the party.
Article 14.
(1) The Brokerage agency is entitled to charge commission, following compliance with one of the conditions below:
- at the moment of signing of the preliminary or final sales contract, i.e. execution of any other legal action based on which the real estate will clearly change owners;
- at the moment of signing a Contract on transfer and assignment of business shares in a company, when a company is owner of the real estate that is subject to the Brokerage services contract;
- at the moment of making the decision where one company is merged with another company or the decision when one company takes over another company or a decision within a company where the founder of the company changes and such company is owner of the real estate that is subject to the Brokerage services contract;
- payment of any portion of the sales price or a contracted compensation to the seller (payment of full sales price, down payment, first instalment of sales price etc.).
(2) The Brokerage agency is entitled to charge commission even in the case when the legal transactions described in par. 1 of this article are executed by the marital or extramarital partner of the Client, one of their family members and relatives or another person that is close to the Client.
(3) The Brokerage agency is entitled to charge commission even in the case when the legal transactions described in par. 1 of this article are executed by a company, if such company was incorporated by the Client, a close relative of the Client or a person close to the Client or/and when in such company the Client, a close relative or a person close to the Client hold together more than 50% (fifty percent) of ownership (business shares, ownership share etc.).
(4) In case when a contract as signed under conditional provisions, the compliance with such provisions has no impact onto the Brokerage agency regarding the right to charge brokerage commission.
(5) In case of invalidity of the contract, the Brokerage agency is still entitled to charge commission if the cause of such invalidity was not previously known to the Brokerage agency.
X. TERMINATION OF BROKERAGE SERVICES CONTRACT
Article 15.
(1) The Brokerage services contract is terminated at expiration of its term and/or earlier, by termination notice submitted by either contracting party, which notice must be submitted in writing. This provision is not applicable to Exclusive brokerage services contracts.
(2) The Client must indemnify the Brokerage agency for all costs that were contracted explicitly as separate duty by the Client.
(3) If, within a period of 2 years following termination of the Brokerage services contract the Client executes a legal transaction that is mainly result of brokerage services rendered by the Brokerage agency during the term of validity of the Brokerage services contract, the Client is obliged to pay the Brokerage agency the full commission amount.
(4) The provisions specified in par. 2 and 3 of this article also relate to termination of Exclusive brokerage services contracts.
XI. FINAL PROVISIONS
Article 16.
(1) The Act on brokerage services in real estate transactions indirectly applies to all relationships between the Brokerage agency and the Client if not covered by these General terms & conditions and/or the Brokerage service contract and Exclusive brokerage service contract, whereas for all other relationships not covered by the cited act, the Civil obligations Act will apply.
(2) Contractual relations established prior to these General terms & conditions, which are still ongoing, will be subject to these General terms & conditions.
(3) Disputes emerging from and in connection with this Contract will be settled before the authorized court in Split, if not differently contracted between the parties.
(4) These General terms & conditions will be published on the internet website of the Brokerage agency www.croatiapropertysales.com, whereas a copy of these is held at the offices of the Brokerage agency.
(5) All changes and amendments to these General terms & conditions must be in writing and published in accordance with article 16, par. (4) of these General terms & conditions.
(6) These General terms & conditions come into force and are applied starting from 01.01.2020.