First Property Croatia - Real Estate Agency Terms & Conditions
Terms & Conditions
PLEBS d.o.o. real estate brokerage agency (trading as First Property Croatia) from Jelsa, Banski Dolac bb, OIB 56200386589, (hereinafter the Broker), accoding to the Article 18 of the Croatian Real Estate Brokerage Law, hereafter adopts the following
GENERAL TERMS AND CONDITIONS
I – General Provisions
General terms and conditions (hereinafter: Terms) of real estate brokerage define business relations between PLEBS d.o.o. as licensed real estate agency and the person or legal entity (hereinafter: the Principal) entering into a real estate brokerage agreement with the Broker. General terms and conditions represent an integral part of all agreements made between the Principal and the Broker.
The Broker is a company registered with Commercial Court in Split, Registry no.467962. The Broker\'s offices are located in 1) Jelsa, Banski Dolac bb (Hvar office) and 2) Split, Zrinsko Frankopanska 16/I (Split office). The business hours of the Broker are Monday – Friday 8.00 – 16.00 hrs, subject to change if previously agreed so with the clients. Account 2484008-1103311536, Raiffeisen bank Zagreb, Petrinska 59.
The Broker\'s equity in the amount of 21,000 kuna is paid in full. Management: Timothy E. Coulson. The agency has permanently employed staff qualified to perform real estate brokerage work. The Broker is registered with the Croatian Chamber of Commerce Real Estate Brokers Index. The broker has liability insurance with Kvarner Vienna Insurance.
II – Communication With Principals And Third Parties
The Principal may employ the Broker by means of a signed real estate brokerage agreement, in one of the following manners: personally, by registered post, by telefax, or by email. All other information exchange may also be done orally.
Information on prices and availability of properties in the brokers portfolio are updated as soon as possible, i.e. as soon as the changes occur. The Broker shall make efforts to have correct information in the descriptional part of the offer, but is not responsible for their accuracy if the errors occured due to good faith in the information delivered to the Broker by a third party. Third parties are considered persons with which the Broker tries to introduce to the Principal in order to make arrangements with the basic purpose of making a real estate sale or purchase.
The Broker must permanently keep information exchanged with a third party a business secret. Exceptions are possible in case of court orders or any legal requirements related to money laundring, and financing of terrorism.
The obligation of keeping the business secret is not considered violated if the Broker reveals the information to third parties which the Broker attempts to put the Principal in contact with - this would be highly necessary in order for the Broker to fulfill the obligation of brokerage as agreed with the Principal.
III – Property Prices
Property prices are principally stated in Euros, payable in kuna countervalue. The prices of properties in Croatia are also stated with approximate accuracy in kuna, according to the monthly mean exchange course of the Croatian National Bank.
IV – Real Estate Brokerage Agreements
By a real estate brokerage agreement the Broker assumes the obligation to try to find and bring in contact with the Principal a third person interested to make a property sale or purchase deal with this Principal. The real estate brokerage agreement describes the scope of the Broker\'s work, the right to brokerage commission, the subject property of the sale / purchase, the duration of the order and other rights and obligations of the broker and the Principal.
The Right To Broker\'s Commission
The Broker is entitled to a commission upon a pre contract or signed sale and purchase contract whichever comes first.
In case the Principal signs a purchase contract with the third party with which the Broker has put him/her into contact, the Broker is entitled to full commission.
It is considered that the Broker facilitated the contact between the Principal and the third party according to the followin:
- Either taken or directed the Principal to view the subject property.
- Organized a meeting between the Principal and the third party.
- Provided the Principal with information about the property belonging to the third party interested in signing a sales/purchase agreement with the Principal.
Any extra costs associated with the agency work need to be approved in advance by the Principal in writing, and without this approval the Broker has no rights to compensation of any costs related to brokerage, not even running costs. In cases when the buyers are charged with property viewings in remote locations (islands), the amount paid is deducted from the commission if the viewings result in a property purchase
Exemptions From The Right To Brokerage Commissions
In case a pre contract or final purchase agreement is not signed, the Broker is not entitled to brokerage commission.
When a standard brokerage agreement is signed, the Broker is not entitled to a brokerage commission if the Principal has, personally or using another Broker, made a property sales/purchase contract with a third party, not introduced originally by the Broker.
The Principal is not obligated to conclude a purchase contract with the third party introduced by the Broker, nor is the Principal obligated to start negotiations about the purchase. The Principal will be considered liable only in case he/she did not act in good faith.
Standard And Exclusive Brokerage Agreements
The brokerage agreement is non exclusive unless otherwise stated in that agreement. The brokerage agreement is concluded for a 24 month period or until sale or purchase of the subject property, whichever comes first.
For all exclusive agreements, the Principal is with great care made aware of all the rights and obligations arising from this agreement. Exclusive brokerage agreements have a limited duration – from one to twelve months.
V – General Obligations Of The Broker
- Try to find and bring in contact with the client (principal) a person interested to make a property sale or purchase deal with this client.
- Inform the client of the average price of similar properties.
- Inspect all available documentation proving ownership or any other actual rights over the property in question and point out the obvious flaws and possible risks involved with the unresolved Land Registry status of the property.
- Undertake necessary actions in order to introduce the property to the market, place appropriate advertisements, and perform any other actions agreed upon in the Brokerage Agreement.
- Endeavour to facilitate property viewings.
- Take part in negotiations in client\'s best interest, and endeavour to reach the conclusion of a sales-purchase contract.
- Keep personal data of the client, as well as information on the subject property a business secret.
- Inform the client on all circumstances which are important for the intended deal, and which are known, or must be known to the Broker.
VI – General Obligations Of The Principal
- Inform the Broker of all circumstances which are important for the providing of brokerage services.
- Provide the Broker with all available documentation proving ownership or other actual right over the subject property.
- Facilitate property viewing to the Broker and the third party.
- Pay the agreed brokerage commission to the Broker according to the invoice from the Broker.
- Pay any extra costs related to the services provided, if they are approved in advance.
- Inform the Broker of any changes associated with the subject property, espacially its price and availability.
VII – Brokerage Commissions
The brokerage commission for a concluded purchase contract is charges as a percentage from the total and final purchase price. The maximum brokerage commission according to Croatian law is 6%, however the Principal may offer a bonus to the Broker, provided that this bonus is not disproportionate to the services performed, the result of the work, and the financial situation of the Principal.
The Broker charges a commission of 3% + VAT for his services. All additional services not covered in the Brokerage agreement will be charged for additionally.
VIII – Final Provisions
Terms and Conditions are placed in the Broker\'s work areas, and are also available on the Broker\'s official website www.firstpropertycroatia.com. The Broker is obligated to deliver these Terms and Conditions to all interested clients, especially to the Principals before signing the brokerage agreement. By signing the brokerage agreement the Principal accepts the Terms and Conditions.
For any properties which are not part of the original Broker's portfolio, but are advertised by the Broker on behalf of their business partners, the Broker is not responsible for the accuracy of information, unless the Broker and the Principal have signed a direct brokerage agreement.
For all provisions not mentioned in this document, the Croatian Law On Real Estate Brokerage applies as well as the Croatian Law On Obligations. The court in Split has jurisdiction over any disputes.
