Terms of Business

terms of business

In accordance with the provisions of the Law on Mediation in Real Estate Transactions (Official Gazette No. 107 of 19 October 2007), the agency Nekretnine Auxilium from Primošten, Splitska 12 issues the General Terms and Conditions of Business.

I. GENERAL PROVISIONS

The general terms and conditions of the real estate broker’s business (hereinafter: General Terms) regulate the business relationship between the real estate brokerage agency (hereinafter: the Broker) and the natural or legal person (hereinafter the principal) who enters into a written contract with the broker about mediation. The general conditions are an integral part of the mediation contract concluded between the mediator and the client.

II. PROPERTY OFFER

The real estate offer is based on the information received by the intermediary in writing or verbally from the client. The broker reserves the possibility of an error in the description and price of the property and the possibility that the advertised property has already been sold (rented) or the owner has given up on the sale (rent). The recipient (principal) must keep the mediator’s offers and notifications as a business secret and may only transfer them to third parties with the written approval of the agency. If the recipient of the offer is already familiar with the real estate offered by the broker, he is obliged to inform the agency about it without delay.

III. OBLIGATIONS OF INTERMEDIARIES

With the agreement on mediation in real estate transactions, the mediator undertakes to perform the following in particular:

  1. to try to find and bring a person in contact with the principal in order to conclude the mediated deal,
  2. inform the client of the average market price of a similar property,
  3. inspect the documents proving the ownership or other real right to the property in question and warn the principal about:
    • obvious shortcomings and possible risks related to the unregulated state of the real estate in the land register,
    • registered real rights or other rights of third parties on real estate,
    • legal consequences of non-fulfillment of obligations towards a third party,
    • deficiencies in the construction or use permit in accordance with a special law,
    • circumstances of the obligation to apply the right of first refusal and limitations in legal transactions in accordance with special regulations.
  4. perform the necessary actions for the purpose of presenting the real estate on the market, advertise the real estate in an appropriate manner, and perform all other actions agreed upon in the real estate brokerage contract that go beyond the usual presentation, and for which he is entitled to special, pre-specified costs,
  5. enable real estate viewing,
  6. mediate in negotiations and try to conclude a contract,
  7. keep the principal’s personal data and, upon the principal’s written order, keep as a business secret information about the real estate for which he is mediating or in connection with that real estate or the business for which he is mediating,
  8. if the subject of the contract is land, check the purpose of the land in question in accordance with the valid spatial planning regulations that refer to that land,
  9. inform the principal about all the circumstances important for the intended work that are known to him or must be known to him.

It is considered that the intermediary enabled the principal to contact another person (natural or legal) regarding negotiations for the conclusion of a mediated deal, if the principal was enabled to contact another person with whom he negotiated for the conclusion of a legal deal, and especially if:

  • directly took or instructed the client or a third person to view the property in question,
  • organized a meeting between the principal and the other contracting party for the purpose of negotiating the conclusion of a legal transaction,
  • communicated to the principal the name, phone number, fax number, e-mail of another person authorized to conclude a legal transaction or communicated the exact location of the requested real estate.

IV. OBLIGATIONS OF THE PRINCIPAL

By signing the contract on mediation in real estate transactions, the principal undertakes to perform the following in particular:

  1. inform the mediator about all the circumstances that are important for the performance of mediation services and present accurate information about the real estate, and if he has one, give the mediator a location, construction, or use permit for the real estate that is the subject of the contract, and provide the mediator with evidence of fulfilling obligations under the third party side;
  2. provide the mediator with documents proving his ownership of the real estate, or other real rights to the real estate that is the subject of the contract, and warn the mediator of all registered and unregistered encumbrances that exist on the real estate;
  3. provide the mediator and a third person interested in concluding the mediated deal with a viewing of the property,
  4. inform the mediator about all relevant information about the requested real estate, which especially includes the description of the real estate and the price;
  5. after entering into a mediated legal transaction, i.e. a pre-contract by which he is obliged to enter into a mediated legal transaction, if the mediator and the client have agreed that the right to payment of the mediation fee is acquired already at the conclusion of the preliminary contract, pay the mediation fee to the mediator, unless otherwise agreed;
  6. if it is expressly agreed, to compensate the mediator for expenses incurred during the mediation, which exceed the usual mediation costs,
  7. inform the intermediary in writing about all changes related to the work for which he has authorized the intermediary, and especially about changes related to ownership of real estate.

V. BROKERAGE FEE

The mediator is entitled to a mediation fee, the amount of which is determined by the mediation agreement. The amount of the fee must not exceed 6% of the purchase price of the property. The intermediary acquires the right to compensation in full at the moment of concluding the mediated business, that is, by signing the Contract or pre-contract by which the principal undertakes to conclude the mediated legal business. The fee is paid to the mediator at the time of signing the pre-contract or contract between the two contracting parties.

The intermediary can contract the right to reimbursement of expenses necessary for the execution of the order and request that funds be advanced to him for certain expenditures for expenses.

The principal is also obliged to pay compensation when he has concluded a legal transaction with the person with whom the mediator brought him into contact, which is different from the one for which the mediation was carried out, which is of the same value as the legal transaction, i.e. which achieves the same purpose as the mediated legal transaction.

The mediator has the right to compensation if the principal’s spouse, or common-law partner, descendant or parent concludes the mediated legal transaction with the person with whom the mediator brought the principal into contact.

If the principal withdraws during the conclusion of the mediated deal, he is obliged to pay the actual costs in terms of time spent, advertising and other costs. In the case of mediation, in which the ordering party has found an interested person on its own or through a third party, the mediator may, in accordance with his conscience, charge the actual costs incurred in connection with the business in question.

Fee amounts: The following percentages are paid as an intermediary fee.

  • Purchase – Broker’s commission is 3% of the achieved price of the property.
  • Sale – Broker’s commission is 3% of the achieved price of the property.
  • Exchange – When exchanging real estate, a commission of 3% is charged from each party in the exchange, and the percentage is calculated from the value of the real estate acquired by the party through the exchange.
  • Rent/Lease
  • In the case of a rental/lease agreement (contracted duration of the lease/lease up to 5 years), 100% of the monthly rent is charged.
  • 150% of the monthly rent is charged for contracts longer than 5 years.
  • In the case of principals with whom the mediator has an exclusive mediation agreement, the fee is charged according to the amount agreed upon and specified in the same.

YOU. TERMINATION OF CONTRACT

The agreement on mediation is concluded for a certain period of time and ends with the expiration of the term for which it was concluded if the agreement for which it was mediated was not concluded within that period or by the termination of one of the contracting parties. The principal is obliged to compensate the intermediary for the costs incurred, which were otherwise expressly agreed to be paid separately by the principal. The parties may withdraw from the contract on mediation in real estate transactions before the end of the agreed term only for a particularly justified reason. In that case, the client is obliged to reimburse the costs incurred to the intermediary. If, within a period of no longer than the duration of the concluded mediation agreement, after the termination of that agreement, the principal concludes a legal transaction that is predominantly a consequence of the mediator’s actions before the termination of the mediation agreement, he is obliged to pay the mediation fee in full to the mediator, unless otherwise agreed in the contract.

VII. FINAL PROVISIONS AND DISPUTE RESOLUTION

The provisions of the Act on Real Estate Brokerage and the Obligatory Relations Act apply to the relations between the principal and the intermediary resulting from mediation contracts that are not regulated by the General Terms and Conditions or the mediation contract. The Municipal Court in Šibenik is competent for possible disputes.

Šibenik, May 20, 2009.