The New Luxury Real Estate, proprietary of Minceta Galerija Ltd. real estate agency, Dubrovnik, Nikole Tesle 2, PIN 94518790826; (hereinafter: Agency), according to the Article 18. of the Croatian Real Estate Brokerage Law, on November 1st, 2020 adopts the following:
TERMS AND CONDITIONS
OPENING STATEMENTS
Article 1.
The agency is a company registered for real estate brokerage activity;
The agency is a company licensed by the Ministry of Economy, entrepreneurship and crafts and registered with the Chamber of economy;
Agency’s Terms and Conditions define business relations between the Agency and its Clients/ Principals (persons or legal entities).
By entering into an Agency’s agreement, the Principal confirms that he (she or company) is aware of and agrees with the provisions of these Terms and Conditions.
Terms and Conditions are published on the Agency’s website and exposed in the Agency’s office. /https://www.thenewluxuryrealestate.com/
GENERAL TERMS OF AGENCY’S AGREEMENT
Article 2.
General terms of Agency’s 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 agreement, or referred to in the contract form.
These Terms and Conditions specify the type and conclusion of the Agency’s agreement, rights and obligations of the Agency and contractual Parties in property sale / purchase process, Agency’s 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
Article 3.
Certain terms in the context of these Terms and Conditions are determined by the Croatian Real Estate Brokerage Law and have the following meanings:
Real estate Agency is a licensed company operating in Real Estate Market;
Agent is a person employed in the Agency;
Inter-mediation is any action the Agency (Agent) undertakes in order to cooperate between the Principal and the Third Party, as well as negotiations and preparations for closing legal deals especially concerning the purchase, sale, rental, leasing etc. of a property;
Property is house, apartment, land, plot, commercial space, building, hotel, etc.;
Client or Principal is a person or company with whom the Agency is concluding the Agency’s Contract
(seller, buyer, lessor or any other party to a property ownership transfer or lease);
Third Party is any person (company) who is taking other place in property ownership transfer or lease;
Agency’s Agreement / Contract is the written contract between the Agency and the Principal.
AGENCY’S CONTRACT
Article 4.
Agency’s Contract must be signed between Agency and Principal, without exception.
Upon signing Agency’s Contract, the Agency assumes the obligation to seek for Third Party in order to buy or sell or rent a property; and the Principal undertakes the obligation to pay a percentage of the purchase price (fee) if the sale has been successfully completed.
Agency’s Contract is made in written form and becomes valid in the moment of conclusion. It is valid within a period of ‘until sold’ (‘until bought’) or in case it is withdrawn from the market. Duration period may be different as agreed between the Parties; also may be extended by agreement of the Parties several times.
Should one of the Parties wishes to terminate the brokerage agreement, that Party is obligated to issue a written termination notice 30 days prior the termination day to the other Party.
Unless otherwise stipulated in these Terms 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 contains 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 Agency provides services approved by the Principal and in connection with the sale / lease subject of the brokerage.
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.).
Brokerage Exclusivity
Article 5.
Standard real estate brokerage agreements are non-exclusive. The Principal is obliged to pay the commission to the Agency only if the sale / lease 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 or company) shall not employ another agency. This obligation must be clearly stated in the agreement.
Should the Principal conclude a sale or purchase contract without having consulted or informed the Agency with whom one has signed the exclusive agreement, the Principal is obligated to fulfil signed agreement with the Agency. That payment should cover all costs occurred during the mediation.
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
Article 6.
The brokerage agreement is concluded for period ‘until sold’ for sellers and for period of 12 months for buyers. The brokerage agreement never expires to sellers for potential buyers to whom the property is shown, nor for buyers for shown properties.
The brokerage agreement is considered terminated 30 days after a written termination notice from one Party to other, which is to be delivered by post or e-mail to the other Party.
Upon termination, The Principal shall cover all costs of the Agency’s brokerage from terminated agreement. If any additional services provided outside the usual costs 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 after 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
Article 7.
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 person;
Legal consequences of failure to fulfil 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 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;
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 land 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
Article 8.
By signing the real estate brokerage agreement, the Principal agrees to:
Inform the Agency 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 property, as well as providing the Agency with proof of fulfilment 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 Agency and 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 (pre) 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 Agency in written form of any changes associated with the subject property, especially the changes in the ownership over the property.
Article 9.
The Principal is not obligated to enter into negotiations or close a deal with a Third Party brought to him or her by the Agency; any clause in the real estate brokerage agreement that would state otherwise is considered null and void.
Article 10.
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 cannot 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 costs 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.
Article 11.
All travel costs outside of Dubrovnik City are to be covered by the Principal, but those costs will be refunded should the Principal conclude a sales agreement in accordance with the rest of these Terms and Conditions.
AGENCY COMMISSION
Article 12.
In accordance with the Croatian Real Estate Brokerage Law the brokerage fee is freely determined by the real estate brokerage agreement.
Commission for the brokerage services provided by this Agency is 3-5% (three to five percent) +VAT from the finally agreed value of the Property, but not less than 3.000,00 EUR for the Buyer and for the Seller.
The Agency is entitled to the brokerage fee upon fulfillment of the following two cumulative terms:
– In the moment of signing the sale / purchase (pre)contract, or any other legal act causing the transfer of ownership of 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 installment 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 Agency is 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.
Article 13.
When the contract is made under abrogation clause, the fulfillment of terms has no bearing on the Agency’s right to the brokerage fee.
In case of the invalidity of the contract, the Agency retains the right to the brokerage fee if the cause of invalidity has not been known to the Agency.
Article 14.
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 side-line 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 above in this Article, or if the Principal and any of the persons mentioned above together hold over 50% (fifty per cent) of shares (business interests, shares etc.).
PROPERTY OFFER, PRICES AND VIEWINGS
Article 15.
The Agency’s offer is based on the information received in writing or verbally from the Seller and the Buyer. 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.
Article 16.
The prices of properties are stated in Euro, payable in Croatian Kuna counter value, according to the exchange rate agreed by both parties. In the event that no exchange rate is defined, the middle rate of the Croatian National Bank, valid on the day of payment shall be applied.
Article 17.
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 Third-Party cause that may prevent from viewing. Should there be any viewing fee, the Agency will inform prospective Buyer upfront.
ACCEPTANCE OF FULFILLMENT
Article 18.
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 brokerage. The 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.
AGENCY’S WEBSITE
Article 19.
The Agency’s website domain is https://www.thenewluxuryrealestate.com/. The content of the website is in 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 the accuracy, 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 information and/or materials provided on this website is solely at one’s 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 link to 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
Article 20.
The Agency is acting in accordance with the Directive EU 2016/679. By accepting these Terms and Conditions, Principal accepts Agency’s Privacy Policy.
CLOSING PROVISIONS
Article 21.
The business relations between the Agency and 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 and Conditions 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 this Agreement, the parties agree to the competence of the relevant court in Dubrovnik.
Article 22.
The Agency reserves the right to change these Terms and Conditions at any time.