General terms and conditions

Property & More 

Real Estate Agency

 

1. Introductory provisions 

For the purposes of these General Terms and Conditions, the capitalised terms have the following meanings:

1. Real Estate Agency is Property & more d.o.o. za poslovanje nekretninama, namely a company based at Zagreb, Ilica 36, OIB [Croatian national identification number]: 61536045134, licensed under the Real Estate Agents Act  (“Agency”).
2. Real Estate Agent is a natural person registered in the Real Estate Agents Register  (“Agent”).
3. Real Estate Agency Activities are activities whereby the Real Estate Agency seeks to arrange contact and negotiations between clients and third parties, as well as any legal preliminaries required to close real estate transactions including but not limited to sale, purchase, substitution, and commercial/residential lease.
4. Client is a natural or legal person that concludes an agency agreement with the Real Estate Agency, namely a seller, buyer, lessee, lessor, or any other participant in the real estate transactions  (“Client”).
5. Third Party is a natural or legal person that the Real Estate Agency introduces to the Client to have them negotiate and close the real estate transaction (“Third Party”).

 

2. Real estate agency agreement

Under a real estate agency agreement (“Agency Agreement”) the Agency agrees to prospect for Third Parties and refer them to the Client to have them negotiate and close the transaction resulting in the conveyance or establishment of certain real estate rights. In consideration of the agency services, the Client agrees to pay the Agency a fee (“Fee”) upon closing. The Agency Agreement is concluded in writing for a fixed term.  If the contracting parties do not specify the length of the term, it will be deemed that the Agency Agreement has been concluded for a fixed term of 12 months running from the date of conclusion. The term of the Agency Agreement can be extended by mutual agreement of the parties.  The Agency disclaims all liability associated with errors in real estate descriptions or prices, or failure of the real estate owner to close the transaction.

 

3. Agency agreement termination

Fixed-term Agency Agreement terminates on the expiry of its term if the contract contemplated therein has not been concluded during that term.  The Client agrees to reimburse the Agency for the incurred costs, provided that the Client is expressly liable to such costs under the Agency Agreement.  If within 12 months of the termination of the Agency Agreement the Client closes a transaction resulting from the arrangements made by the Agency prior to the termination of the Agency Agreement, the Client agrees to pay the Agency Fee in full, unless otherwise stipulated in the Agency Agreement.

 

4. Exclusivity

The Client may agree to refrain from engaging any other agency for the transaction in question (exclusivity clause), which must be expressly stipulated in the Agency Agreement.  If the Client closes a transaction through an agency other than the Agency while the exclusive Agency Agreement is in effect, the Client agrees to pay the Agency Fee as well as the costs actually incurred during Agency’s engagement, provided that the Agency has formally been granted exclusivity to close such transaction.  The Agency is required to bring the Client’s attention to the meaning and legal consequences of this Article at execution of the exclusive Agency Agreement.

 

Fixed-term exclusive Agency Agreement terminates on the expiry of its term if the contract contemplated therein has not been concluded during that term.  If within 12 months of the termination of the Agency Agreement the Client closes a transaction resulting from the arrangements made by the Agency prior to the termination of the Agency Agreement, the Client agrees to pay the Agency the agreed Fee in full, unless otherwise stipulated in the Agency Agreement. If the Client terminates the exclusive Agency Agreement early, the Agency is entitled to an early termination fee.  Early termination fee is 3% (three per cent) of the real estate asking price, as specified in the exclusive Agency Agreement. Early termination fee falls due on the date the Client terminates the exclusive Agency Agreement.

 

5. Agency obligations

The Agency’s efforts aiming at the execution of a real estate sale and purchase agreement or commercial lease agreement or residential lease agreement include, without limitation, the following:

1. Prospecting for a legal or natural person willing to close the transaction and referring such person to the Client;
2. Presenting to the Client the average market prices of the comparable real estate;
3. Obtaining and examining the formal proof of ownership or other property rights relating to the real estate in question;
4. Taking the necessary steps to properly advertise and list the real estate in question, as well any additional steps specifically stipulated in the Agency Agreement, in which case the Agency is entitled to compensation of costs incurred, provided that such costs were presented for approval beforehand;
5. Arranging real estate viewing;
6. Facilitating negotiations to close the transaction, provided the Agent has expressly assumed this obligation;
7. Maintaining confidentiality of Client’s personal data and, where so requested by the Client in writing, the information on or in connection with the real estate or transaction in question;
8. Where the Agency Agreement involves land, verifying the land use designation under the relevant zoning regulations;
9. Notifying the Client of all circumstances relevant to the transaction, which the Agent is or should be aware of;
10. Notifying the Client of all relevant provisions of the Act on Prevention of Money Laundering and Financing of Terrorism (Official Gazette 108/17, 39/19).

 

6. Client’s obligations

By concluding the Agency Agreement, the Client assumes the following obligations:

1. To inform the Agency of all the circumstances relevant to the transaction and provide accurate information on the real estate. The Client should also present the Agency with relevant zoning and building permits, a certificate of compliance on completion, and an energy performance certificate, if in possession of such documents. The Client is also required to supply the Agency with proof that third-party obligations have been fulfilled.
2. To present the Agency with proof of ownership or other property rights in the real estate in question, and disclose to the Agency all registered and unregistered encumbrances that affect the real estate.
3. If applicable, to acquaint the Agency with the fact that the real estate in question represents community property of the Client and the Client’s spouse/domestic partner.
4. To provide the Agency and the interested Third Party access for the purposes of real estate viewing;
5. To supply the Agency with all relevant information about the real estate in question, particularly its description and price.
6. To pay the Agency Fee immediately on conclusion of the preliminary agreement whereby the Client agreed to conclude the main agreement (or on conclusion of the main agreement if there was no preliminary agreement in relation to the real estate in question) unless otherwise stipulated in the Agency Agreement.
7. To reimburse the Agency for the costs incurred in excess of the usual agency costs.
8. To notify the Agency in writing of all changes relevant to the real estate transaction, in particular of the changes in real estate ownership.

 

The Client is under no obligation to enter negotiations with the Third Party referred by the Agency or to close the transaction.  However, if negotiations or closing were refused in bad faith, the Client will be liable for damages and costs the Agency incurred to bring about the transaction; the costs cannot be higher than the agreed Fee nor lower than one-third of the Fee. The Client will be liable for damages if they acted fraudulently, provided incorrect information, or withheld information relevant to the closing of the transaction.

 

7. Agency fee

The Fee is a percentage of either the selling price of the real property in question or the monthly lease, as stipulated in the Agency Agreement.  The Fee falls due on execution of the real estate contract contemplated in the Agency Agreement unless the Agency and the Client have agreed that the Fee falls due on execution of the preliminary contract.  The Agency is entitled to the Fee for the 12 months following the termination of the Agency Agreement, unless otherwise stipulated therein, in case the Client and a Third Party close a transaction resulting from the arrangements made by the Agency prior to the termination of the Agency Agreement. If the Client fails to close the transaction near closing (after the Agency has presented an acceptable offer), the Client is required to pay the agreed Agency Fee.  The Agency is entitled to the Fee if (1) the Client’s spouse/domestic partner, descendant, or parent, or (2) a company, institution, or any other legal entity founded or represented by the Client or Client’s spouse/domestic partner, descendant, or parent, or (3) a Client’s employee or independent contractor closes the transaction with the person referred to the Client by the Agency.

The Agency is considered to have referred the Third Party to the Client if:

• the Agency accompanied or directed the Client to the real estate for the viewing;
• the Agency arranged a meeting between the Client and the Third Party to negotiate the transaction;
• the Agency provide the Client with the Third Party’s name, telephone number, fax number, e-mail address, or the exact location of the real property in question.

 

In respect of the preliminary or main contract concluded between the Client and the Third Party regarding the real estate in question, the failure of either the Client or the Third Party to perform the contract they executed does not affect the Client’s obligation to pay the Fee to the Agency in the amount and manner stipulated in this Article and the Agency Agreement.

 

The Client is liable to the Fee even if the Client and a Third Party (referred and introduced to the Client by the Agency) close a transaction other than the one contemplated in the Agency Agreement, but which nevertheless achieves the same purpose or involves the real estate provided for by the Agency Agreement.  Where the Client and a Third Party close a transaction other than the one contemplated in the Agency Agreement, but which nevertheless achieves the same purpose or involves the real estate provided for by the Agency Agreement, the Client is liable to the Fee in accordance with the Agency’s schedule of fees incorporated in these General Terms and Conditions.

 

Fees are quoted exclusive of value-added tax which will be charged additionally.

 

8. Final provisions

Matters not expressly provided for in these General Terms and Conditions are subject to the Real Estate Agents Act, Civil Obligations Act, and other applicable regulations.

 

These General Terms and Conditions became effective on 7 October 2022.

 

Zagreb, 7 October 2022

 

NOTICE

Under Article 10 of the Consumer Protection Act (Official Gazette 19/22), Property & more d.o.o., a real estate agency based at Zagreb, Ilica 36, OIB [Croatian national identification number] 61536045134, recognises the right of the client to file a complaint. The clients may exercise that right in person at the Agency’s registered office or via post or email.  The Agency will respond to the complaint within 15 days.

 

SCHEDULE OF FEES:

 

If you are renting or buying a new home or office or making an investment, you will be assigned an Agent who will instruct you on your rights and obligations and the fee charged for agency services.

 

SCHEDULE OF FEES for agency services relating to real estate sale, purchase, substitution, or lease transactions, as per Articles 27 and 28 of the Real Estate Agents Act (Official Gazette 107/07, 144/12, 14/14, 32/19).

 

The agency fee constitutes a percentage of the total selling price plus VAT.

 

SALE

As a rule, the fee is charged based on the total price specified in the preliminary contract (if the parties agree to have the agency fee paid on execution of the preliminary contract) or the main contract, as the case may be. Agency fee on the real estate sale (payable by the seller) is:

 

Between 2% and 5% but not less than EUR 1.350,00; the exact number is specified in the agency agreement.

 

PURCHASE

As a rule, the fee is charged based on the total price specified in the preliminary contract (if the parties agree to have the agency fee paid on execution of the preliminary contract) or the main contract, as the case may be.  Agency fee on the real estate purchase (payable by the buyer) is:

 

Between 2% and 5% but not less than EUR 1.350,00; the exact number is specified in the agency agreement.

 

RESIDENTIAL AND COMMERCIAL LEASES

 

The fee payable by the lessor or lessee, as the case may be, is based on the type of transaction and the time spent structuring the deal, as well as the size and other characteristics of the real estate. The exact number is specified in the agency agreement.