Terms & Conditions
GENERAL TERMS AND CONDITIONS
The Real Estate Agency’s General Terms and Conditions (hereinafter: the General Terms and Conditions) regulate the business relationship between the Real Estate Agency (hereinafter: the Agent) and a natural or legal person (hereinafter: the Principal) which enters into a written Real estate agency agreement with the Agent. The General Terms and Conditions are an integral part of the Real estate agreement concluded between the Agent and the Principal. By concluding a Contract with the Real Estate Agency, the Principal confirms that he agrees with the provisions set out in the General Terms and Conditions and that he accepts them fully.
The terms and denominations in these General Terms and Conditions have the following meaning:
- The Real Estate Agency is KONZOLA ARHITEKTURA j.d.o.o., Epulonova 17, Novigrad, OIB (eng. PIN) 85176229919 – authorized Real Estate Agency, which meets the requirements for intermediary serviceson real estatemarket.
- The Real Estate Agent intermediation concerns activities related to connecting and introducing the Principal to the Third party, as well as negotiations and preparations for the conclusion of legal acts regarding a particular real estate, especially in cases of real estate purchase, selling, exchanging, renting, leasing, etc.
- Real estates are parcels of land, together with everything that is permanently connected to the land above or below its surface in accordance with the provisions of the general regulation on ownership and other property rights.
- The Principal is a natural or legal person who concludes with the Estate agent a written Real estate agency agreement (seller, buyer, lessee, lessor, tenant and other possible participants in the real estate transactions).
- The third party is a person which the Real Estate Agent introduces to the Principal in order to negotiate the conclusion of the legal transactions of a particular real estate property.
- The Estate agents fees is the amount that the Principal shall pay to the Agent for its services.
In case the provisions of the Contract concluded between the Principal and Agent differ from the provisions set out in the General terms and conditions, provisions set out in the Contract shall apply.
REAL ESTATE OFFER
The Real Estate Agent offer is based on information received in written and/or oral and/or electronical form by the Principal. The offer and/or real estate data shall be considered confirmed after the Real estate agency agreement has been signed. The Principal acknowledges that there is a possibility of errors in the real estate description and price and the possibility that the real estate has already been sold, leased, or that the real estate owner withdrew from sale, and that in such cases the Agent shall not be held responsible.
The Agency shall not be responsible for the Principal’s errors and/or extremely negligent behavior. The Principal must keep the Agent’s offers and notices confidential and is allowed to transfer them to a third party only if the Agent gives a written consent.
The real estate prices are expressed in euros and are payable in kuna equivalent.
REAL ESTATE AGENCY AGREEMENT
By signing the Real estate agency agreement (hereinafter referred to as the Contract) the Estate Agent undertakes to find and introduce the Principal to a third party in order to negotiate and conclude a specific legal transaction regarding the transfer or establishment of a specific right on the real estate, and the Principal agrees to pay him the Estate agents fees if such legal transaction shall be concluded. The Contract shall be concluded in written form and for a definite period. The Contract shall be considered concluded after it has been signed by both Contracting Parties.
EXCLUSIVE AGENCY AGREEMENT
By signing the Exclusive Agency Agreement the Principal shall commit not to hire any other agent, that is, that he shall not sell the real estate himself or in any other way (exclusive agency agreement). This obligation must be explicitly contracted. If during the term of the Exclusive Agency Agreement, the Principal concluded a legal transaction (for which he engaged the Agent) with another agent, or he concluded the legal transaction by himself or otherwise, he shall pay the Agent the contracted Estate agents fees and all additional real costs regarding the said intermediated legal transaction as well. When concluding an Exclusive Agency Agreement, the Agent shall be obliged to warn the Principal especially about the meaning and legal consequences of that clause.
CONTRACT DURATION AND TERMINATION
The Contract shall be concluded for a period of 1 (one) to 3 (three) years and shall terminate with the expiration of the term for which it has been concluded, unless the legal transaction has not been concluded within that period. The Contract may be extended several times by mutual agreement of the parties. The parties may terminate the Contract even before the expiration of the term for which the Contract was concluded for a particularly justified reason and in written form exclusively by either contracting party. The cancellation period is 30 (thirty) days. If the Principal concludes a legal transaction with a third party himself, he shall be obliged to inform the Agent in written form within 8 (eight) days regarding the termination of the obligation to provide intermediation services, that is, Contract termination. In such case, the Agent may charge the actual expenses related to the business in question.
In the event that upon Contract termination the Principal concludes the legal transaction with a third party and this legal transaction is the result of the Agent’s intermediary activities performed before the Real estate agency contract termination, the Agent shall be entitled to receive the Estate agents fees within up to 12 months.
By signing this Contract, the Agent undertakes to perform the following:
- he shall try to find an interested party and introduce the Principle to the party in order to conclude the intermediated legal transaction,
- he shall inform the Principal about the average market price of a similar real estate,
- obtain and review documents proving ownership and/or other real rights regarding the real estate in question, alert the Principal regarding obvious deficiencies and possible risks due to irregularities in the land registry, registered real rights or other third parties rights on the real estate,
- perform all necessary actions for the presentation of the real estate on the market, advertise the real estate appropriately and perform all other activities agreed in the Real estate agency agreement which exceed the usual presentation and for which he is entitled to special, in advance stated expenses,
- allow the Principal and third parties to see the properties,
- intermediate in the negotiations and try to reach the Contract conclusion,
- keep safe the Principal’s personal data and, by the Principal’s written order, keep as confidential the information regarding the real estate in question or the intermediated legal transaction,
- if the scope of the Contract is land purchase, check the purpose of the land in question in accordance with the Spatial Planning Regulations related to that land,
- inform the Principal about all circumstances, with which he is familiar or should be familiar, relevant for the legal transaction. An Agent who provides intermediary services to a Principal who wants to remain unknown, has no obligation to disclose to the third party the identity of the Principal until the legal transaction conclusion.
By signing the Contract, the Principal undertakes to perform the following:
- inform the Agent about all the circumstances important for the intermediation and provide accurate information about the real estate, show the Agent the location permit, construction permit or certificate of occupancy for the property and provide the Agent with evidence of obligations fulfillment toward the third party,
- show the Agent documents proving the real estate’s ownership, or other real right on the real estate subject of the Contract, and warn the Agent of all registered and unregistered encumbrances on the property,
- show the real estate to the Agent and third party interested in the conclusion of the intermediated legal transaction
- provide the Agent with all important information regarding the real estate in question, especially the property description and price,
- pay to the Agent the Estate agents fees in its entirety as a percentage, agreed upon by the parties, of the determined real estate purchase price, and immediately after the conclusion of the first legal act that the Principal concluded with the third party, and by which the Principal received the down payment and/or part and/or the total real estate purchase price,
- compensate to the Agent the expenses incurred during his intermediation that exceed the usual expenses of intermediation,
- inform the Agent in written form of any changes related to the legal transaction for which he has authorized the Agent, and in particular changes associated with the real estate ownership.
The Principal shall not be obliged to enter into negotiations for the conclusion of the Contract with a third party found by the Agent nor to conclude the Contract. The Principal shall be liable to the Agent for damages if he did not act in good faith and he shall be obliged to compensate the Agency for all costs incurred during the intermediation period, which cannot be less than 1/3 nor greater than the contracted Estate agents fees for the intermediated business transaction.
The Agent shall be considered to have provided intermediary service if he introduced the Principal to a third party in order to negotiate a legal transaction, and in particular if he:
- directly introduced and/or sent the third party to the Principal in order to view the real estate, subject of the intermediation,
- organized a meeting between the Principal and third party in order to negotiate the conclusion of the legal transaction,
- communicated to the Principal the name, and/or telephone number (fixed or mobile), and/or fax number, and/or e-mail of the person authorized to negotiate and/or conclude a legal transaction, and/or the exact address of the third party interested in the conclusion of the legal transaction,
- enabled the Principal to contact the third party in any other manner from which is possible to discern without doubt the authorized person’s capacity to negotiate and/or conclude a legal transaction.
ESTATE AGENTS FEES
The Agent is entitled to Estate agents fees in the amount determined by the Contract and in accordance with the price list which is an integral part of the General Terms and Conditions. The Agent shall acquire the right to receive the Estate agents fees immediately after the conclusion of the first legal act that the Contracting parties conclude between themselves (preliminary contract or final contract).
The contracted Estate agents fees cover all the Agent’s activities referred to in article 9 of the General Terms and Conditions. For activities that are not specified in Article 9 of the General Terms and Conditions, and upon Principal’s request, the latter is obliged to pay to the Estate agent an hourly rate. For activities which are not specified in Article 9 of the General Terms and Conditions, and upon Principal’s request, the latter is obliged to compensate the Estate agent for the actual costs of these activities. Value added tax is charged on all Estate agents fees.
The contracted Estate agents fees do not include the costs of court fees for registration, pre-registration and annotation, notary public fees for signature authentication on documents, title deed’s fees, fess for copies of catastral plan, mortgage loan modifications, mortgage removal, certificates and other documents related to the concluded legal transaction by which the Principal realizes his interests.
The Principal is obliged to pay the Estate agent the Estate agents fees if he concludes a legal transaction, other than the intermediated legal transaction, with a person introduced by the Estate agent and which has the same value or the same purpose as the intermediated legal transaction. The Principal is obliged to pay the Estate Agent the Estate agents fees in the event the Principal’s spouse, extramarital partner, descendant or parent, that is, a company or other legal person which is the Principal, its spouse or extramarital partner, descendant or parent – founder or responsible person, or the person with which he has entered into an employment contract or temporary service contract, concludes the intermediated legal transaction with the person that the Estate agent introduced to the Principal.
LIABILITY FOR DAMAGES
In the event the Estate agent breaches the non-disclosure agreement, he shall be obliged to pay to the damaged parties a compensation for damages they have suffered as a result of disclosure of trade secrets.
The duty of confidentiality shall not be considered breached if the Estate agent discloses the information to persons which he wants to introduce to the Principal, and that is essential for the fulfillment of the Estate agent’s obligation under the Contract that he concluded with the Principal.
The Principal shall be liable for damages if he/she has acted fraudulently, withheld information and/or gave incorrect information important for the Agent’s job. The Principal is responsible for the damage in case of intentional or grossly negligent behavior on his part towards the Agent and/or third party that the Estate agent introduced to him. In the case referred to in paragraph 2 of this Article, the Agent and the Principal agree that the Principal shall be obliged to pay to the Agent all costs incurred during the Agent’s intermediation and which cannot exceed the Agent’s fee for the intermediated job.
AGENT’S SERVICES PRICES
The Estate agents fees shall be charged as a percentage of the total amount of the purchase price achieved.
Real estate purchase: the agreed percentage (%) of the real estate purchase price, minimum fee of 1.000,00 EUR, payable in HRK equivalent.
Sale of real estate: the agreed percentage (%) of the real estate purchase price, minimum fee of 1.000,00 EUR, payable in HRK equivalent.
Real estate rental/lease up to 5 years: 100% of the monthly rent.
Real estate rental/lease 5 years or more: 200% of the monthly rent.
Estate agent’s hourly rate: 300,00 kn/hour.
Estate agent’s other services: by appointment.
FILING A COMPLAINT
The Principal shall have the right to express satisfaction or dissatisfaction with the Agent’s service. Proposals, commendations and complaints must be submitted in written form to: KONZOLA ARHITEKTURA j.d.o.o., Epulonova 17, 52466 Novigrad or e-mail: email@example.com
In case of dispute between the Estate agent and Principal regarding legal relations arising under this Contract, the court on whose territory the Estate agent has a registered office shall have territorial jurisdiction, and in this case the substantive law of the Republic of Croatia shall apply.
KONZOLA ARHITEKTURA j.d.o.o., Epulonova 17, 52466 Novigrad, OIB: 85176229919, based on the Decision of the Ministry of Economy, Class: UP / I-330-01 / 18-01 / 458, Reg.No.: 526-05-01-01-01 / 3-18- 2 from November 26, 2018, meets the requirements for real estate intermediation and is registered in the Register of Real Estate Agents in the Republic of Croatia at the Croatian Chamber of Commerce.
Novigrad, January 2019.