Pursuant to the provisions of the Real Estate Brokerage Act (official gazette “Narodne novine” no. 107/07, 144/12, 14/14, 32/19), the real estate brokerage Terra Dalmatica Agency d.o.o., with registered office in Šibenik, Obala hrvatske ratne mornarice 1, Personal Identification Number (OIB): 71685047762 hereby adopts the following:
GENERAL TERMS AND CONDITIONS
Preamble
Article 1
1) The General Terms and Conditions define the business relationship of the Real Estate Brokerage Agency TERRA DALMATICA d.o.o. (hereinafter: Terra Dalmatica Agency) as the broker with their client (a natural or legal person). By concluding the Real Estate Brokerage Agreement, the client acknowledges that they are familiar with and agree to the provisions of the terms and conditions of the Terra Dalmatica Agency.
2) Under these terms and conditions, the client is a natural or legal person who is a signatory to the Brokerage Agreement or Brokerage Order. The offer of the Terra Dalmatica Agency contains information which have been received in writing or orally, and is valid only if confirmed by the client. The Terra Dalmatica Agency reserves the possibility of an error/mistake in the description and the price of the real estate which may occur due to erroneous information or due to a change in the terms of sale which were not submitted in writing, and due to the possibility that the advertised real estate has already been sold (or leased) or that the owner had withdrawn from the sale (or lease).
3) The client must keep the offers and notices sent by the Terra Dalmatica Agency confidential and is allowed to disclose them to third parties only if granted written approval by the Agency. If the offer recipient is already familiar with the real estate being offered to them by the Terra Dalmatica Agency, the recipient must immediately inform the Agency thereof.
Obligations of the Terra Dalmatica Agency
Article 2
1) The Terra Dalmatica Agency is obliged to:
1. Conclude a brokerage agreement with the client in writing (either standard or exclusive agreement),
2. Try to find and introduce a third party to the client for the purpose of concluding the brokered deal,
3. Inform the client about the average market price of a similar real estate,
4. Inform the client about the legal and physical deficiencies of the real estate,
5. Examine the documents used to prove ownership or any other property right over the subject real estate and inform the client about all visible deficiencies and potential risks arising from the unresolved land registry status of the property,
6. Perform actions necessary to present the real estate on the market and advertise the real estate in the manner seen fit by the Agency,
7. Provide an opportunity for the inspection of the real estate,
8. Keep confidential client’s personal data and all other information as ordered by the client,
9. Inform the client about all circumstances relevant for the contemplated transaction of which the Terra Dalmatica Agency is aware,
10. Intermediate in the negotiations and work towards the conclusion of the purchase and sale legal transaction,
11. Be present during the conclusion of the legal transaction (conclusion of the Preliminary Agreement and Main Agreement),
12. Attend the handover of the real estate, which is the subject of the legal transaction,
13. If the subject of agreement is land, verify the intended use of the said land in accordance with the physical planning regulations pertaining to said land,
14. If the client grants power of attorney to the Terra Dalmatica Agency, the Agency shall perform the following on behalf of the client: after an agreement is reached in cooperation with the partner law firm, the Agency shall draw up the Preliminary and Main Agreement on the Purchase and Sale / Exchange / Lease of the Real Estate, organise the certification of signatures of the parties to the agreement by a notary public, in case of using bank loan, perform all necessary actions for the execution of the legal, submit valid documents for the transfer of utilities from the Seller to the Buyer (with the electricity supplier, water supplier, municipal waste disposal and other utility services), in cooperation with the partner law firm draw up a petition for the registration of the right of ownership over the purchased real estate and effect the transfer of the right of ownership to the name of the Buyer with the Land Registry Department of the competent Municipal Court.
2) It shall be deemed that the Terra Dalmatica Agency facilitated the client’s contact with another person (legal or natural) for the purpose of negotiation of the brokered legal transaction if the client was enabled to contact a person with whom they negotiatied the legal transaction, and particularly if: the Agency directly guided or referred the client or a third party to inspect the subject real estate, organised the meeting between the client and the other party to the agreement for negotiations on the conclusion of the legal transaction, or provided the client with the name, phone number, fax number, e-mail address of the other party authorised to conclude the legal transaction, or if they gave them the exact location of the sought real estate.
Client’s obligations
Article 3
1) The client is obliged to:
1. Conclude a Brokerage Agreement with the Terra Dalmatica Agency, in writing (either standard or exclusive agreement).
2. Inform the Terra Dalmatica Agency about all circumstances which are of importance for the performance of the brokerage services, provide accurate data on the real estate, and, if they are in possesion of such documents, present to the broker for inspection the improvement location permit, building permit and the certificate of occupancy (if they have them) for the real estate which is the subject of the agreement, as well as the evidence of fulfilment of obligations towards third parties.
3. Present to the broker for inspection the documents proving the client’s ownership of the real estate in question or proving other property rights over the real estate which is the subject of the agreement and notify the broker of all registered and unregistered charges over the real estate. If the client is a legal person – present to the broker eveidence that the natural person signing the client’s order is authorised to representat the legal person in question.
4. Provide the Terra Dalmatica Agency and the third party interested in the conclusion of the brokered deal with an opportunity to inspect the real estate in the presence / company of the employees of the Terra Dalmatica Agency. Inform in writing the Terra Dalmatica Agency about all new important information on the sought real estate which must necessarily include a description, ownership status, and the price of the real estate.
5. Immediately following the conclusion of the brokered legal transaction i.e. preliminary agreement under which the client undertook to conclude the brokered legal transaction, if the Terra Dalmatica Agency and the client have agreed that the right on the payment of the brokerage fee is acquired at the conclusion of the preliminary agreement, pay the Terra Dalmatica Agency the brokerage fee (commission), unless otherwise specified.
6. If this is expressly agreed, reimburse the Terra Dalmatica Agency for the costs incurred during the brokerage which exceed usual brokerage costs.
7. The client shall be liable for damages, if they failed to act in good faith, acted duplicitously, withheld information or provided misinformation in relation to major aspects of the brokerage deal with the purpose of completing the legal transaction, and shall reimburse the Terra Dalmatica Agency for all costs incurred during the brokerage. The said costs may not exceed the amount of the brokerage fee for the intermediate transaction.
2) Exercising the right to brokerage fee if the legal transaction brokered by the broker is concluded between the client and a third party.
3) The client is obliged to pay the broker the agreed brokerage fee. The broker is entitled to brokerage fee from the moment of conclusion of the legal transaction which the broker brokered between the client and the third party. Legal transaction is deemed to be concluded when the client and the third party reach an agreement regarding the subject of the agreement and the price, i.e. at the time of the conclusion of the agreement, preliminary agreement and/or depositing of the earnest money for the brokered legal transaction. Under these terms, the brokered legal transaction also includes situations where the client enters into an agreement, preliminary agreement and/or deposits earnest money with a third party, provided that the party was introduced to the client by the broker, in relation to the real estate which are the property of a third party or its family members, even though they may not be expressly mentioned in the Brokerage Agreement or in the Brokerage Sheet.
4) The brokerage fee cumulatively includes all the costs which the broker incurred in the process of the brokerage and upon the collection of the brokerage fee the broker shall not be entitled to any further reimbursements for the said costs. This does not apply to the costs of services rendered when the broker, in agreement with the client, undertakes additional tasks related to the objective of the brokerage. These services are deemed fall be outside of the usual scope of brokerage activity.
5) The agreed brokerage fee does not include the costs of settling court fees for registration, conditional registration and annotation, notarial service fees related to the certification of signatures on the documents, fees paid in oder to obtain title deeds, cadastral plan copies, land-parcel identifications, and costs related to the transfer of mortgage, removal of mortgage, and issuance of certificates and other documents regarding the concluded legal transaction.
6) The broker shall also bear the costs of regular attorney services in relation to the drafting of the Agreement on the legal transaction which is being brokered, but only if these services were performed by the attorney with whom the broker has concluded a cooperation agreement. Brokerage commissions for brokerage performed during the purchase and sale, exchange, lease and rent of real estate shall be charged in accordance with the Brokerage Agreement. The Terra Dalmatica Agency may contract a right for reimbursement of costs necessary for carrying out the order and request advance payment in relation to certain costs.
7) The client must pay the fee to the Agency Terra Nautica even if they conclude a different legal transaction with the person to whom they were introduced by the agency, equivalent in value to the legal transaction and serving the same purpose as the brokered legal transaction. The Terra Dalmatica Agency is entitled to a fee if a spouse or a. common-law partner, descendant or parent of the client concludes the brokered legal transaction with the person to whom they were introduced by the Agency.
8) The broker shall not be entitled to the brokerage fee they enter into an agreement with the client concerning the subject of the brokerage, or if an agent performing brokerage duties on behalf of the broker concludes such an agreement with the client.
Sale fee
Article 4
1) Commission of the Terra Dalmatica Agency for the sale of real estate (paid by the seller) shall be 2-5% plus VAT, but no less than EUR 930.00 plus VAT.
2) The Commission shall be paid by the buyer if agreed so or if the Terra Dalmatica Agency received a written or oral order from the buyer to search for real estate.
3) In the event in which the Terra Dalmatica Agency has an exclusive brokerage agreement, the commission shall be charged according to the amount agreed upon and stated in the agreement.
Purchase fee
Article 5
1) Commission of the Terra Dalmatica Agency for the purchase of real estate (paid by the buyer) shall be 2-4%, but not less than EUR 930.00 plus VAT of the total purchase and sale price for the real estate.
2) In the event in which the Terra Dalmatica Agency has an exclusive brokerage agreement with the client, the commission shall be charged according to the amount agreed upon and stated in the agreement.
Exchange fee
Article 6
The Commission of the Terra Dalmatica Agency shall amount to 3% (plus VAT) and shall be charged to each party to the exchange, and the percentage shall be calculated from the value of the real estate which the party gained by virtue of the exchange.
Lease/rent fee
Article 7
For the Lease/Rental Agreement, a percentage is charged from the amount of monthly rent in the following manner: Commission from the lessor or rent giver 75% (plus VAT) minimum 100% (plus VAT) for the lease or rent in the duration of 12 – 59 months, 150% (plus VAT) minimum for the lease or rent in the duration of 60 months (5 years) and more, Commission from the lessee or rent seeker 75% (plus VAT) minimum for the lease 100% (plus VAT) for the lease or rent in the duration of 12-59 months, 150% (plus VAT) minimum for the lease or rent in the duration of 60 months (5 years) or more.
Exclusive Brokerage
Article 8
1) In the Real Estate Brokerage Agreement the client may undertake not to hire any other broker for the brokered transaction (exclusive brokerage), and this obligation must be explicitly agreed upon.
2) If during the term of the Exclusive Brokerage Agreement the client concludes a legal transaction circumventing the broker by hiring another broker, and given that the exclusive broker was given a brokerage order for said transaction, the client must pay the exclusive broker the agreed brokerage fee as well as any other additional actual costs incurred during the performance of brokerage services for the aforementioned brokered deal.
3) When concluding the Exclusive Brokerage Agreement for real estate transactions, the broker must particularly warn the client about the meaning and legal consequences of this agreement provision.
Co-brokerage Agreement
Article 9
1) The broker may transfer the Real Estate Brokerage Agreement to other brokers if the broker and the client agree on this.
2) In this case, the client remains in an agreement only with the broker with whom they concluded the agreement, and the broker shall give to the client the signature of the broker to which the Real Estate Brokerage Agreement is being transferred.
Broker’s hourly rate
Article 10
If this is expressly agreed, the broker may, in agreement with the client, also provide to the client other services related to the transaction which is the subject of the brokerage, and which exceed usual brokerage costs, and in this case the broker’s hourly rate shall be EUR 30.00 (plus VAT).
Termination of the Agreement
Article 11
1) If the parties do not agree upon a term for which they conclude the Brokerage Agreement, it shall be deemed that the Real Estate Brokerage Agreement has been concluded for a fixed term of 12 months, with the possibility of mutual extensions upon agreement by the parties.
2) The Fixed-Term Brokerage Agreement shall cease after the expiry of the term for which it was concluded, if during this term an agreement for which it was brokered was not concluded, or by termination by any of the parties.
3) The client may terminate the Brokerage Agreement provided that the termination is not contrary to the principle of conscientiousness and honesty set out in the Civil Obligations Act. The procedure for termination of the Real Estate Brokerage Agreement cannot be made at an adverse time, i.e. with the intention to deprive the broker of their right to the brokerage fee and/or to intentionally cause damage to the broker.
4) In the event of the agreed option for unilateral termination of the Real Estate Brokerage Agreement, where the notice period is not expressly defined in such an agreement itself, the notice period shall be 30 (thirty) days from the receipt of the termination notice sent by registered mail with a return note.
5) If during the term of the brokerage order, or within two years after its cancellation, the client concludes a legal transaction with the person to whom they were introduced by the broker without the involvement of the broker, or concludes the said transaction via another broker, who introduced them to the third party after the broker, it shall be deemed that the client has acted contrary to the principle of conscientiousness (within the meaning of Article 12 of the Civil Obligations Act), and they shall be obliged to pay full brokerage fee to the broker. The client must reimburse the broker for incurred expenses for which it was expressly agreed that they shall be borne separately by the client.
6) If, in the period not longer than the duration of the concluded brokerage agreement after the termination of this agreement, the client concludes a legal transaction which is predominantly the consequence of the broker’s actions prior to the termination of the brokerage agreement, the client must pay full brokerage fee to the broker.
Availability of the General Terms and Conditions of the Terra Dalmatica Agency
Article 12
General Terms and Conditions of the Terra Dalmatica Agency are available at the official premises of the Terra Dalmatica Agency in Šibenik, Obala hrvatske mornarice 1, at the broker’s website www.terradalmatica.hr, and shall be included in an abbreviated form in the standard forms of orders (contracts) of the Agency Terra Dalmatiac.
Article 13
General Provisions and Dispute Resolution
1) Provisions of the Real Estate Brokerage Act and the Civil Obligations Act shall apply on relations between the client and the Agency arising from the Brokerage Agreement, which are not determined by these General Terms and Conditions or by the Brokerage Agreement.
2) If there is a discrepancy between the provisions of the General Terms and Conditions and an individual Brokerage Agreement, the provisions of the individual Brokerage Agreement shall apply.
3) All amendments to these General Terms and Conditions shall be drawn up by the broker in writing and be published in accordance with Article 12 of these General Terms and Conditions.
4) These broker’s General Terms and Conditions shall apply as of 1 March 2024. The client and broker shall try to amicably resolve any potential disputes, and if this is not possible the court in Šibenik shall be the competent court.
Šibenik