COULSON d.o.o. real estate brokerage agency (trading as First Property Croatia) from Bana Berislavića 3, Split, 21000 OIB 56200386589, (hereinafter the Broker), according to the Article 18 of the Croatian Real Estate Brokerage Law, on 1st April 2013 adopts the following
TERMS AND CONDITIONS
- OPENING PROVISIONS
Terms & Conditions of real estate Brokerage define business relations between the real estate Agency and its Principal (person or legal entity).
By entering into a real estate Brokerage agreement the Principal confirms that he/she is aware of and agrees with the provisions of these Terms & Conditions.
Terms & Conditions are published on the website www.firstpropertycroatia.com
- GENERAL TERMS OF BROKERAGE AGREEMENT
General terms of Brokerage agreement are contractual provisions valid for majority of contracts which one contracting party (the party drafting the contract) proposes to the other contractual party, whether they be contained in the standard (formulary) agreement, or referred to in the agreement.
These Terms & Conditions specify the terms of real estate Brokerage, conclusion of Agency agreements, rights and obligations of the Agency and contractual parties in property purchase process, Brokerage fee, and rights and obligations on termination of Brokerage contracts.
Terminology contained in these Terms & Conditions
Certain terms in the context of these Terms & Conditions are determined by the Obligations Act, and have the following meanings:
- Real estate agency / Broker is a licensed company, person, or tradesman, fulfilling the business requirements for real estate Brokerage,
- Real estate Brokerage are any actions the Agency undertakes in order to liaise between the Principal and the third party, as well as negotiations and preparations for closing legal deals concerning the purchase, sale, rental etc. of a property
- Real estate / Properties are land plots including all that is permanently attached on or under ground, in accordance with general regulation on ownership and other actual rights.
- Principal is a person or company with whom the Broker is concluding the real estate Brokerage agreement (seller, buyer, lessor, lessee, and any other parties to a property ownership transfer).
- Third Party is a person whom the real estate Broker seeks to introduce to the Principal in order to negotiate a business deal regarding a particular property.
- Viewing Form is a document which records all the properties the Principal has viewed with the Broker, must be signed at the end of every viewing trip and a copy of which can be viewed on the website here xxxxxxxxxx
3. REAL ESTATE BROKERAGE AGREEMENT
(1) At the beginning of every viewing the Principal is required to sign the real estate Brokerage agreement, a copy of which we will provide you in advance.
(2) In signing the real estate Brokerage agreement, the Broker assumes the obligation to try to find and bring in contact with the Principal a third party interested to make a property sale or purchase contract with this Principal; and the Principal undertakes to pay the Agency fee in case the sale or purchase is made.
(3) The real estate Brokerage agreement is made in written form and is of unlimited duration, unless a duration period is agreed between the Parties and written into the real estate Brokerage agreement.
(4) Should one of the Parties wish to terminate the Brokerage agreement, this Party is obligated to issue a written termination notice to the other Party.
(5) Unless otherwise stipulated in our Terms & Conditions, the regulations found in the Obligations Act are to be applied when considering the relationship between the Agency and the Principal.
(6) The real estate Brokerage agreement must contain information on the real estate Agency, the Principal, type and essential content of the business subject for which the Brokerage is being carried out, information on Agency fee and any extra costs which may occur while the Broker provides services approved by the Principal and in connection with the sale/purchase subject of the Brokerage.
(7) The real estate Brokerage agreement may contain other information related to the business subject of Brokerage (for example, especially agreed deadlines, contractual terms and conditions of payment of Agency fees, information on liability insurance, insurance terms and conditions of payment of Agency fees etc.)
(8) The real estate Brokerage agreement is to be supplemented with a viewing form. The viewing form is to be completed by the Broker and signed by the Principal at the end of the viewing trip.
(1) In a real estate Brokerage agreement, the Principal may agree to exclusively use the Brokerage services provided by one particular Broker, i.e. that he/she shall not employ another Agency. This obligation must be clearly stated in the agreement.
(2) Should the Principal conclude a sale or purchase contract without having consulted or informed the Broker with whom he/she signed the exclusive agreement, the Principal is obligated to cover any costs occurred during the Brokerage. These costs must not exceed the Brokerage fee.
(3) On signing the exclusive Brokerage agreement, the Agency is to take care to inform the Principal of the meaning and legal consequences of this clause.
- PROPERTY OFFER
(1) Our offer is based on the information we receive in writing and verbally from the Principal. Errors are possible in the description and price of the property; also there is possibility that the advertised property is already sold, rented, or that the seller decided to take the property off the market.
(2) The Agency reserves the possibility of errors in the description and/or price of the property; or if the advertised property is already sold and/or rented, and/or that the seller decided to take the property off the market, as a result of incorrect information provided by the seller.
(3) The Agency is not responsible for any errors or negligent behaviour by the Seller. The Broker is not responsible for omissions or damage caused by limitations and hidden flaws of the property, and which the Principal knew or should have known but failed to notify the Broker about.
(4) During the purchase process, the final purchase contract may be preceded by a preliminary purchase contract. The preliminary purchase contract is a document in which the obligation is assumed to at a later stage sign a final purchase contract. This preliminary contract must contain all relevant information necessary in order to describe the property and state its purchase price. On signing the preliminary purchase contract, a reservation deposit is paid (a certain amount of money which is given to the seller by the buyer as a sign that an agreement has been made). Property ownership transfer is not possible on basis of a preliminary purchase contract; it can only take place after signing the final purchase contract.
- PRICES OF PROPERTIES
The prices of properties are in Euros, payable in Kuna counter value, according to the exchange rate agreed by both parties. In the event that no exchange rate is defined, the selling rate of the Croatian National Bank shall apply.
The Broker is not responsible for errors and/or especially negligent behaviour by the Principal, in particular for false, incorrect, untimely information, or omitting to provide true, correct, updated information on properties, or conditions and subject of Brokerage.
- ACCEPTANCE OF FULFILLMENT
(1) The real estate brokerage agreement does not authorize the Agency to accept on Principal’s behalf the fulfillment of obligations arising from a contract concluded as a result of the Brokerage.
(2) The above requires a special written Power of Attorney.
(3) The Broker may, as an exception, conclude a sale or purchase contract on behalf of the Principal, but only if the Principal issues a special Power of Attorney for this purpose.
The Principal is not obligated to enter into sale or purchase negotiations with the person found by the Agency, or conclude a contract with this person under terms he/she has given to the Agency; however the Principal shall be responsible for any damage in case he/she acted against the principles of honesty and conscience.
Obligations of the Broker
By signing the real estate brokerage agreement, the Agency undertakes to provide the following services:
(1) try to find and bring in contact a person interested to make a property sales or purchase agreement with the Principal,
(2) inform the Principal of average prices for similar properties,
(3) inspect all available documentation proving ownership or other real rights over the subject property and inform the Principal of the following:
– obvious disadvantages and possible risks in dealing with a property that has no clean title,
– registered real or other rights over the property in favour of a third party,
– legal consequences of failure to fulfill the obligations to the third party,
– circumstances of pre-emption rights and limitations in sale & purchase according to special regulations.
(4) undertake necessary action in order to introduce (present) the property to the market, publish appropriate advertisements, and provide any other marketing services specified in the real estate brokerage agreement exceeding the standard presentation; the Broker is entitled to a separate fee,
(5) organize property viewings,
(6) participate in negotiations and endeavour to close a sale / purchase agreement
(7) keep personal data of the Principal as well as information on the subject property, and the agreement the Agency has on this property as a business secret if this is required by the Principal in writing,
(8) if the subject property is land, check the purpose of the subject plot according to zoning regulations,
(9) inform the Principal on all circumstances relevant for the intended deal, of which the Broker is or should be aware of.
Obligations of the Principal
(1) By signing the real estate brokerage agreement, the Principal agrees to:
- inform the Broker of all circumstances important in providing brokerage services, and present accurate information on the subject property; if possible present the location, building and usage permits, or other documents proving legality of the building, as well as providing the Broker with proof of fulfillment of obligations to third parties,
- present proof of ownership or other rights over the subject property and inform the Agency of any existing registered or unregistered liens or mortgages on the property,
- facilitate property viewings to the Broker and the client interested in the property,
- provide the Agency with relevant information on the property, especially including the description and price of the property,
- pay the agreed brokerage fee to the Agency upon the conclusion of the preliminary sales / purchase contract unless otherwise stated in the real estate brokerage agreement,
- if so agreed upon in the real estate brokerage agreement, the Principal shall cover any costs exceeding standard brokerage services,
- inform the Broker of any changes associated with the subject property, especially the changes in the ownership over the property.
(2) the Principal is not obligated to enter into negotiations or close a deal with a client brought to him/her by the Broker, and any clause in the real estate brokerage agreement that would state otherwise is considered null and void.
(3) the Principal shall be responsible for any damage occurred as a result of his/her failing to act in good faith and to the principles of honesty and conscience, and is to compensate for the costs occurred during the Brokerage. These costs must not exceed the real estate brokerage fee.
(4) The fee does not include any of the costs of buying the property. These include but are not limited to; legal fees, notary fees, court fees, accountancy fees, land registry and cadastre fees, property tax, VAT and so forth.
(5) All travel costs outside of Split county or to the Islands are to be covered by the Principal, but which will be refunded should the Principal conclude a sales agreement in accordance with the rest of this agreement.
- WHEN IS THE AGENCY ENTITLED TO BROKERAGE COMMISSION
(1) The Broker is entitled to the brokerage fee even if the fee has not been agreed upon.
(2) In case the amount of the fee has not been determined neither by tariff nor any other general regulation or contract or custom, it shall be determined by the court according to the amount of work done and services provided by the Broker.
(3) The brokerage fee paid by the buyer for the brokerage services provided by the Broker is usually 3% + VAT with a minimum fee of €4000 + VAT. However, the fee is subject to the real estate brokerage agreement signed between the Broker and the buyer and can go either up or down. Furthermore, the Broker reserves the right, in accordance with the Croatian law of real estate, to charge the seller of the property for providing his services should the seller agree to pay a fee.
(4) Should the Principal offer a higher commission to the Broker, the Broker may accept this fee but only if it is in harmony with the work done and the result achieved, as well as with the financial situation of the Principal.
(1) The Broker is entitled to the brokerage fee upon fulfillment of the following two cumulative terms:
– in the moment of signing the Preliminary Sale & Purchase Contract, or Final Sale & Purchase Contract, or any other legal act causing the transfer of ownership over the property (such as business share transfer),
– payment of any part of the purchase price or the agreed fee to the seller (e.g. total price, reservation deposit, first instalment of the purchase price).
(2) The Broker is also entitled to the brokerage fee in case the Contract mentioned in Para 1 is concluded by the Principal’s partner, spouse, close relative or any other person(s) close to him/her.
(3) Furthermore the Broker is entitled to the brokerage fee in case the Contract mentioned in Para 1 is concluded by a Company if that Company is established by the Principal, or if the Principal with his/her close relative or another person close to him/her hold over 50% (fifty per cent) of shares (business interests, shares etc.).
(4) When the contract is made under abrogation clause, the fulfillment of terms has no bearing on the broker’s right to the brokerage fee.
(5) In case of the invalidity of the contract, the Broker retains the right to the brokerage fee if the cause of invalidity has not been known to the Broker.
- TERMINATION OF BROKERAGE AGREEMENT
(1) The Brokerage agreement is considered terminated after a written termination notice from the Party wishing to terminate the agreement is delivered to the other Party.
(2) The Principal shall cover extra costs for services provided outside the usual fee if any such costs and services have been agreed upon in the brokerage agreement.
(3) If the Principal concludes a Sale & Purchase Contract within 2 years upon the termination of the brokerage agreement, and this Contract would be a result of Broker’s work, the Principal shall pay the full brokerage fee to the Agency.
(4) Provisions of paragraphs 2 and 3 of this Article also refer to the termination of exclusive brokerage agreements.
- CLOSING PROVISIONS
(1) The business relations between the Broker and the Principal which are defined neither by these Terms& Conditions, not by an exclusive brokerage agreement; the provisions of the Law on Real Estate Brokerage shall indirectly apply, and in case they are not determined by this Law, then the Obligations Act shall apply.
(2) Provisions of these Terms & Conditions shall apply in an appropriate manner to any contractual relations not yet completed but set forth before these Terms & Conditions became effective.
(3) In case of any disputes arising from and in relation to this Agreement, the parties agree to the competence of the relevant court in Split.