FIRST PROPERTY d.o.o. real estate brokerage agency (trading as First Property Croatia) from Bana Berislavića 3, Split, 21000 OIB 38200992035, (hereinafter: the Agency), according to the Article 18 of the Croatian Real Estate Brokerage Law, adopts the following:
TERMS AND CONDITIONS
- OPENING STATEMENTS
- The agency is a company registered for performing real estate brokerage activity based in the Republic of Croatia.
- The agency is a company licensed by the Ministry of economy, entrepreneurship and crafts and registered with the Croatian chamber of economy.
- Terms and 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 and
- Terms and Conditions are published on the Agency’s website https://www.firstpropertycroatia.com/ and exposed in the Agency’s office.
- 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 form of the
- These Terms and Conditions specify the type and conclusion of the real estate brokerage agreement, rights and obligations of the Agency and contractual Partiesin property sale / purchase process, brokerage commission, rights and obligations of contractual parties on termination of brokerage agreement and the use of Agency’s website.
- TERMINOLOGY CONTAINED IN THESE TERMS AND CONDITIONS
Certain terms in the context of these Terms andConditions are determined by the Croatian Real Estate Brokerage Law, and have the following meanings:
- Real estate Agency / Brokeris a licensed company, a person, or a tradesman, fulfilling the business requirements for real estate Brokerage;
- Real estate Brokerageare 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 especially concerning the purchase, sale, rental, leasing of a property;
- Real estate / Propertiesare land plots including all that is permanently attached to it, on the surface or below the ground in accordance with general regulation of Ownership and other actual rights;
- Principalis a person or company with whom the Agency is concluding the real estate Brokerage agreement (seller, buyer, lessor, lessee, and any other parties to a property ownership transfer);
- Third Partyis a person whom the real estate Broker seeks to introduce to the Principal in order to negotiate a business deal regarding a particular property;
- Real estate brokerage Agreementis the written contract between the Agency and the Principal.
- REAL ESTATE BROKERAGE AGREEMENT
- Real estate brokerage agreement must be signed by the Principal in the event of the Principal being the Seller who wishes to engage the Agency into the process of selling the Property and / or Principal being the (prospective) Buyer who wishes to engage the Agency into the process of showing, buying, and / or revealing the location of the Property.
- Upon signing the real estate brokerage agreement, the Agency assumes the obligation to seek and liaise with the Principal a Third Party in order to negotiate and deal with a specific legal transaction concerning the transfer or establishment of a particular property right, and the Principal undertakes to pay the Agency a certain fee if the legal work is done.
- The real estate brokerage agreement is made in written form and becomes valid in the moment of conclusion. The real estate brokerage agreement is valid for 5 (say: five) years since the day of conclusion or until the property issold / withdrawn from the market. Duration period may be different as agreed between the Parties, and may be extended by agreement of the Parties several times.
- 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.
- Unless otherwise stipulated in theseTerms and Conditions, the regulations found in the Obligations Act are to be applied when considering the relationship between the Agency and the Principal.
- 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 Agencyprovides services approved by the Principal and in connection with the sale / purchase subject of the b
- 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.).
- The real estate brokerage agreement is to be supplemented with a viewing form. The viewing form is to be completed by the Agentand signed by the Principal at the end of the viewing trip.
- Standard real estate brokerage agreements are non-exclusive. The Principal is obliged to pay the commission to the Agency only if the sale/ purchase of the Property is a result of actions the Agency undertook in order to liaise between the Principal and the Third Party, including explicit exposure of location and characteristics of the Property.
- In a real estate brokerage agreement, the Principal may agree to exclusively use the brokerage services provided by the Agency, i.e. that he / she shall not employ another a This obligation must be clearly stated in the agreement.
- Should the Principal conclude a sale or purchase contract without having consulted or informed the Agencywith whom he / she signed the exclusive agreement, the Principal is obligated to cover any costs occurred during the b These costs must not exceed the brokerage fee.
- 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.
- TERMINATION OF THE BROKERAGE AGREEMENT
- The brokerage agreement concluded for a specified period shall terminate upon expiry of the period for which it was concluded if, the contract for which it is mediated is not concluded within that period.
- 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.
- Upon termination, The Principal shall cover the full amount of the brokerage fee. If any additional services provided outside the usual fee have been agreed upon in the brokerage agreement, the Principal is to cover those costs as well.
- If the Principal concludes a sale / purchase (pre)contract within 2 (say: two) yearsupon the termination of the brokerage agreement, and this contract would be a result of the Agency’s work in liaising with the Principal a Third Party during the validity of the brokerage agreement, the Principal shall pay the full brokerage fee to the Agency.
- Provisions of paragraphs (3)and (4) of this Article also refer to the termination of exclusive real estate brokerage agreement.
- RIGHTS AND OBLIGATIONS OF THE CONTRACTING PARTIES
Obligations of the Agency
By signing the real estate brokerage agreement, the Agency undertakes to provide the following services:
- Try to find and bring in contact a Third Party interested to make a property sale / purchase agreement with the Principal;
- Inform the Principal of average prices for similar properties;
- 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.
- 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, for which the Agency is entitled to a separate fee;
- Organize property viewings;
- Participate in negotiations and endeavour to close a sale / purchase agreement;
- 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;
- If the property in subject of the brokerage agreement is land, check the purpose of the subject plot according to zoning regulations;
- Inform the Principal on all circumstances relevant for the intended deal, of which the Agency is or should be aware of.
Obligations of the Principal
By signing the real estate brokerage agreement, the Principal agrees to:
- Inform the Agencyof 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 property, as well as providing the Agency 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 Agencyand the Third Party 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;
- Cover any costs exceeding standard brokerage fee,if so agreed upon in the real estate brokerage agreement;
- Inform the Agencyin written form of any changes associated with the subject property, especially the changes in the ownership over the property.
- The Principal is not obligated to enter into negotiations or close a deal with a Third Partybrought to him or her by the Agency, and any clause in the real estate brokerage agreement that would state otherwise is considered null and void.
- 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 b These costs can not be less than 1/3 or greater than the real estate brokerage fee.
- 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.
- All travel costs outside of Split county or to the islands are to be covered by the Principal, but those costswill be refunded should the Principal conclude a sales agreement in accordance with the rest of these Terms and Conditions.
- AGENCY COMMISSION
- In accordance with the Croatian Real Estate Brokerage Lawthe brokerage fee is freely determined by the real estate brokerage agreement.
- Typical commission for the brokerage services provided by this Agency is 3% (say: three percent) +VAT from the finally agreed value of the Property, but not less than 4.000,00 EUR for the Buyer and not less than 3.000,00 EUR for the Seller.
- The Agency is entitled to the brokerage fee upon fulfillment of the following 2 (say: two) cumulative terms:
- In the moment of signing the sale / purchase (pre)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). Should the sale / purchase price be paid in stages, brokerage fee will accordingly follow the percentage of the payment stage.
- The Agencyis entitled to the brokerage fee even if the fee has not been precisely agreed upon. 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 Agency.
- Croatian Real Estate Brokerage Law refers to the term Principal, not making distinction between the Buyer and the Seller. Accordingly, the brokerage commission is payable by all Principals; both the Buyer and the Seller, unless stated otherwise.
- When the contract is made under abrogation clause, the fulfillment of terms has no bearing on the Agency’sright to the brokerage fee.
- In case of the invalidity of the contract, the Agencyretains the right to the brokerage fee if the cause of invalidity has not been known to the Agency.
The Agency shall be entitled to the brokerage commission even in case when the (pre)contract mentioned in Article 9. is concluded by:
- The Principal’s, spouse, partner, relative in a straight line or in the sideline to the second degree or any other person(s) close to him or her (e.g. an authorized person, an employer, employee or an associate);
- Company established by the Principal or by any of the persons mentioned in section (A) of this Article, or if the Principal and any of the persons mentioned in section (A) together hold over 50% (fifty per cent) of shares (business interests, shares etc.).
- PROPERTY OFFER, PRICES AND VIEWINGS
- The Agency’s offer is based on the information receivedin writing and verbally from the Seller. The Agency reserves the possibility of errors in the description and / or price of the property as a result of incorrect information provided by Seller. (e.g. if the advertised property is already sold and / or rented, or if the Seller decided to take the property off the market).
- The Agency is not responsible for:
- Any errors or negligent behavior 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.
- Any errors or negligent behavior by the Seller, in particular omissions or damage caused by limitations and hidden flaws of the Property, which the Principal knew or should have known, but failed to notify the Agency about.
- The prices of properties are stated in Euro, payable in Kuna counter value, according to the exchange rate agreed by both parties. In the event that no exchange rate is defined, the middlerate of the Croatian National Bank, valid on the day of payment shall be applied.
- While the Agency will strive to show the Property to prospective Buyer on agreed date and time, it is not responsible for its occupancy or other ThirdParty cause that may prevent from viewing. Should there be any viewing fee, the Agency will inform prospective Buyer upfront.
- ACCEPTANCE OF FULFILLMENT
- The real estate brokerage agreement does not authorize the Agency to accept on Principal’s behalf the fulfillment of obligations arising from a (pre)contract concluded as a result of the bThe Agency may, as an exception, conclude a sale / purchase (pre)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/ purchase negotiations with the Third Party found by the Agency, or conclude a (pre)contract 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.
- The Agency’s website domain is https://www.firstpropertycroatia.com/. The content of the website isin the service of providing general information for personal usage. Information on the pages can be changed without prior notice.
- Neither the Agency nor any Third Party can provide any guarantee as to theaccuracy, performance, completeness or suitability of the information and materials found or offered on that website. In using any of the provided content the user accepts the possibility that such information and materials may contain unintentional inaccuracies or errors. Therefore the usage of any of the information and / or materials provided on this website is solely at ones own risk.
- The website contains various materials owned by the Agency or licensed to the Agency. In accordance with copyright laws, permission must be requested before reproduction. All trademarks reproduced on the website, which are not the property of the Agency or are not licensed to the Agency, have the appropriate accreditation, if applicable.
- Unauthorized use of this website may result in a lawsuit and/ or be a criminal offense. Any dispute arising out of unauthorized use is subject to the laws of the Republic of Croatia.
- Any possible linkto another website doesn’t mean that the Agency endorses that website. The Agency is not responsible for the content shown on the linked website(s).
- PERSONAL DATA PROTECTION
- In accordance with the Directive EU 2016/679, the Agency has brought forth an amended Personal data protection act. The Principal accepting these Terms and Conditions, accepts this In particular, by accepting these Terms and Conditions, The Principal agrees on the Personal Data being used in the agency agreements and documentation the Agency has to collect, in accordance with the legal scope.
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- CLOSING PROVISIONS
- The business relations between the Agencyand the Principal that aren’t defined by these Terms and Conditions, nor by an exclusive brokerage agreement, are subjected to the provisions of the Croatian Real Estate Brokerage Law. If in any case they are not determined by this Law, then the Croatian Civil Obligations Act shall apply.
- Provisions of these Terms andConditions shall apply in an appropriate manner to any contractual relations not yet completed but set forth before these Terms and Conditions became effective.
- In case of any disputes arising from and in relation to thisAgreement, the parties agree to the competence of the relevant court in Split.
- We reserve the right to make change to these Terms and Conditions. Last modification was made on July 12th, 2019.
- For more information Contact us: firstname.lastname@example.org