GENERAL TERMS AND CONDITIONS

GENERAL TERMS AND CONDITIONS

General provisions

Under the Decision on Meeting the Requirements from 14.06.2016, CLASS: UP/I-330-01/16-01/157; Ref. No.: 526-05-01-01-01/2-16-2, the company PREMIUM SM d.o.o., Malinska, Dubašljanska 76, on 30.06.2016 is entered into the Brokers’ Registry kept by the Croatian Chamber of Commerce, registration number: 79/2016
Brokers’ General Terms and Conditions in Real Estate Business (hereinafter: General Terms and Conditions) govern the business relationship between the real estate agency (hereinafter: Broker) and a natural or legal person (hereinafter: Principal) that enters into a written Real Estate Brokerage Contract with the Broker.    
General Terms and Conditions make an integral part of the Real Estate Brokerage Contract entered into between the Broker and the Principal.  
By entering into the Brokerage Contract the Principal confirms that he agrees with the provisions of the General Terms and Conditions and accepts them in entirety.


Definitions of Terms Contained in General Terms and Conditions

The Broker in real estate business is a company, a single salesperson or a small business owner registered to perform brokerage in real estate business having its seat in the territory of the Republic of Croatia. The Broker in real estate business is also a company, a single salesperson or a small business owner registered to perform brokerage in real estate business having its seat in the territory of the contracting state of the Agreement on the European Economic Area. 
Ministry is the ministry responsible for economy.
Minister is the minster responsible for economy.
Broker in the real estate business is a natural person registered in the Directory of Authorized Agents in Real Estate Business.
Brokerage in real estate business is broker’s activities related to connecting the principal and a third person and to negotiations and preparations for concluding legal transactions that a certain real estate is a subject of and particularly its purchase, selling, switching, lease, rental and other.
Real estate are plots of land area together with everything that is fixed to the land permanently on or under the surface in accordance with the provisions of the general regulation on ownership and other actual rights.
The Principal is a natural or legal person who enters into a written Real Estate Brokerage Contract with the broker (seller, buyer, lessee, lessor and other real estate business partakers, if any).
A Third Person is a person that a broker tends to connect to the Principal in order to negotiate on concluding legal transactions that a certain real estate is a subject of.
If a single contract with the Principal is different than General Terms and Conditions, the provisions of a single contract shall be applied.  

Diligence in Legal Business

When performing brokerage activities i.e. other activities related to the work that is a subject of brokerage, the Broker shall act with increased diligence and in line with professional rules and customs (with due professional care).  
Real Estate Offer

Broker’s offer is based on information received in writing and/or orally and/or electronically from the Principal.
Offer and/or information on real estate shall be considered confirmed when the Real Estate Brokerage Contract between the Principal and the Broker is signed. 

The Principal takes notice that there is a possibility of a mistake in the description and price of the real estate as well as a possibility that the advertised real estate has already been sold, rented or that the owner withdrew from selling the real estate and for such cases the Broker shall not bear responsibility whatsoever.  
The Broker shall not bear responsibility for errors and/or Principal’s explicitly negligent conduct.  
The Principal shall be obliged to keep as a business secret Broker’s offers and notifications and he can transfer them to a third person only on Broker’s written consent.
If the Principal is familiar with the real estate that is a subject of the Real Estate Brokerage Contract, he shall be obliged to inform the Broker thereon.
By signing the Real Estate Brokerage Contract, the Principal shall confirm that he had not seen with another broker real properties offered and shown to him by the Broker nor that he had signed the Real Estate Brokerage Contract with another Broker. 


Real Estate Price
Real property prices are expressed in EUR, and from 01.01.2023 payable in EUR. The fixed conversion rate is 1.00 EUR = 7.53450 HRK.
 

Advertising
When advertising in mass media i.e. in other written and electronic media, in Broker’s premises or at other places where advertising related to the real estate, which is a subject of business transactions, is allowed, the Broker shall be obliged to disclose his company.  
 

Performance of Same-Type Work
The Agent cannot, without Broker’s consent, who on the grounds of an Employment Contract he performs brokerage for, perform same-type work or other work for another broker at the same time i.e. activities that are identical or similar to brokerage performed by the broker i.e. services related to the work that is a subject of brokerage.
If the Agent acts contrary to the ban from Paragraph 1 of this Article, the broker can ask from the Agent remuneration for damage suffered or he can ask that the made deal is to be considered as the deal made for Broker’s account i.e. that the Agent hands him over the profit earned from such a deal or to transfer to the Broker receivables from such a deal.  
 

Real Estate Brokerage Contract

With the Real Estate Brokerage Contract, the Broker shall undertake to endeavour to find and connect a person to the Principal in order to negotiate and conclude a certain legal transaction on transferring or creating a certain right on the real estate and the Principal shall undertake to pay him a certain brokerage fee if such a legal transaction is concluded.  
The Real Estate Brokerage Contract shall be concluded in writing and for a fixed period of time.   
If the Parties to the Contract do not agree the duration for which the Contract shall be concluded, the Real Estate Brokerage Contract shall be considered to have been concluded for a definite period of 12 months and it can be renewed several times by Parties’ mutual agreement.   
If not otherwise stipulated with this Act, the provisions of general regulations of obligation law shall be applied to the contractual relationship between the Broker and the Principal.
The provisions of this Act cannot be excluded that is restricted with the Contract unless a different agreement of the Parties to the Contract is allowed in relation to a single provision i.e. a different agreement that is in the explicit interest of the Principal.
In the contract concluded between the Broker and the Principal, information on the Broker, the Principal, the type and essential outlines of a deal the Broker is mediating for and brokerage fee are to be explicitly set out as well as additional expenses, if any, which occur when the Broker in agreement with the Principal also performs for the Principal other services related to the deal that is a subject to brokerage.
The Real Estate Brokerage Contract can also contain other information related to the deal that is mediated for (e.g.  deadline and terms for brokerage fee payment, information on liability insurance, terms and conditions for brokerage fee payment insurance and alike).   
By concluding the Real Estate Brokerage Contract, the Principal confirms that he is aware of and agrees with the provisions of the General Terms and Conditions of the Broker. 

Exclusive Brokerage
With the Real Estate Brokerage Contract, the Principal can undertake to not engage any other broker (exclusive brokerage) for the mediated deal and this liability is to be explicitly agreed.  
If for the duration of the Real Estate Exclusive Brokerage Contract the Principal concluded a legal transaction without Broker’s consent through another broker and for this legal transaction an order for brokerage was given to the exclusive Broker, he shall be obliged to pay the agreed brokerage fee to the exclusive Broker as well as additional actual costs, if any, which were made during brokerage for the said mediated deal.     
When concluding the Real Estate Exclusive Brokerage Contract, the Broker shall be obliged to particularly warn the Principal of the meaning and legal consequences of this clause.  
 

Termination of Brokerage Contract
The Real Estate Brokerage Contract concluded for a fixed period of time shall terminate when the period for which it was concluded expires if within this period no contract for which it was mediated was concluded or through cancellation by any of the Parties to the Contract.     
The Principal shall be obliged to reimburse the Broker the costs made for which otherwise it was explicitly agreed that they shall be separately paid by the Principal.  
If, within 12 months after the Real Estate Brokerage Contract terminated, the Principal concludes a legal transaction that is a consequence of Broker’s activities prior to termination of the Real Estate Brokerage Contract, he shall be obliged to pay the Broker the brokerage fee in entirety unless it is differently agreed by the Contract.    
The provisions of Paragraph 2 and 3 of this Article do not apply to the termination of the Real Estate Exclusive Brokerage Contract.


Broker's Liabilities
With the Real Estate Brokerage Contract, the Broker shall particularly undertake to perform the following:    
- to endeavour to find and connect a person to the Principal in order to conclude a mediated deal,
- to make the Principal aware of the average market price of a similar real estate, to provide and examine documents proving title or other actual right on the said real estate,
- to perform necessary activities to present (presentation) the real estate on the market, to advertise the real estate in an appropriate way and to perform all the other activities agreed with the Real Estate Brokerage Contract exceeding usual presentation and for which the Broker is entitled to extra costs indicated in advance,
- to make a visit to the real estate possible,
- to mediate in negotiations and try to conclude the contract, if he explicitly undertook to do so,
- to keep Principal’s personal data and, upon Principal’s written order, to keep a business secret the information on real estate for which he mediates or in relation to such a real estate or a deal for which he mediates,

-the Broker is obliged to identify the authenticity of information from the documents of the said real property, ownership, warn against deficiencies and risks, if any, of unregulated land-registry status of the real property, existence of registered encumbrances, restrictions on the real property in legal business in accordance with special regulations, the Building Permit, Certificate of Occupancy and other information essential for the Principal, if these are visible in the documentation submitted to the Principal. The Broker’s responsibility is excluded, when certain defects are not visible to the Principal from the documentation provided by the Principal, and/or they are concealed from the Broker by the Principal,
- if the subject to concluding the contract is land, to check on the intended use of the said land in accordance with the regulations on physical planning related to that land,
- to inform the Principal about all circumstances relevant for the intended deal, which he is or should be aware of.
 

Principal’s Liabilities
With the Real Estate Brokerage Contract, the Principal shall particularly undertake to perform the following:    
- to inform the Broker about all circumstances that are important for performing brokerage and present correct and accurate information on the real estate, and to make the location permit, construction permit i.e. the certificate of occupancy available to the Broker, if he possess these, for the real estate that is a subject of the contract and to make evidence on meeting the requirements towards the third party available to the Broker 
- to make documents proving his title on the real estate available to the Broker i.e. other actual right on the real estate that is a subject of the contract and to warn the Broker on all registered and non-registered encumbrances on the real estate. If the Principal conceals from the Broker certain defects in the real property that he knew or should have known existed, he is responsible for the liability in accordance with the provisions of the Civil Obligations Act,

-to deliver the Energy Performance Certificate (for an apartment or a house) to the Principal, and hand it over to the third person with whom the said agreement is concluded, as it is essential for advertising the real property,
-the Principal explicitly agrees that the Broker takes photographs and/or records of the real property and publishes the said photographs and/or recordings on its web site and in other web and printed ads newspaper used by the Broker,
- to ensure the Broker and the third person interested in concluding the mediated deal to visit the real estate
- to inform the Broker about all important information on the required real estate, which particularly includes the description and price for the real estate 
- after the mediated legal transaction i.e. the preliminary contract has been concluded, with which he undertook to conclude the mediated legal transaction, if the Broker and the Principal agreed that the right to pay the brokerage fee is gained already at the moment of concluding the preliminary contract, to pay the Broker the brokerage fee, unless otherwise agreed  
- if this is explicitly agreed, to reimburse the Broker the costs made during brokerage that exceed usual brokerage costs,
- to inform the Broker in writing on all changes related to the deal for which he authorized the Broker and particularly on changes related to title on the real estate,

-the Principle confirms that he/she willingly made available his/her personal data to the Broker and he/she undertakes to make available to the Broker all necessary information and his/her identity document for the purpose of establishing his/her identity prior to establishing a legal transaction i.e. prior to entering into the Preliminary Real Estate Sale and Purchase Agreement or the Real Estate Sale and Purchase Agreement which the Broker brokered and these obligations are laid down for the Broker with the Act on prevention of money laundering and terrorist financing.
The Principal is not obliged to enter into negotiations to conclude the mediated deal with the third person found by the Broker nor to conclude the legal transaction and the provision contracting otherwise shall be null and void.
The Principal shall be held responsible by the Broker for damage if thereby he did not act in good faith and is obliged to reimburse all costs made during his brokerage that cannot be less than 1/3 or bigger than the agreed brokerage fee for the mediated deal. 
 

Anonymous Principal
The Broker performing brokerage activities for the principal that wants to stay anonymous has no liability towards the third person, who would like to conclude a legal transaction with the principal, to disclose principal’s identity until the legal transaction has been concluded.
 

Sub-Brokerage Contract
The Broker can transfer the Brokerage Contract to other brokers if this is agreed between the Broker and the Principal.
In case from Paragraph 1 of this Article the Principal shall stay in the contractual relationship only with the broker he concluded the contract with and the broker shall deliver the principal the list of brokers that the brokerage contract shall be transferred to.  
 

Brokerage Fee
The amount of the brokerage fee shall be freely laid down with the Real Estate Brokerage Contract. The amount of the Commission Fee cannot be lower than EUR 1,000 + VAT (one thousand EUR plus VAT).
The broker shall be considered to have made possible for the principle to connect to another person for negotiating on concluding the mediated deal if  it was made possible for the principal to contact the other party (a natural or legal person) that he negotiated with on concluding the legal transaction and particularly if he directly took or directed the principal or the third person to visit the said real estate, arranged the meeting between the principal and other contracting person in order to negotiate on concluding the legal transaction, communicated to the principal or the third person the name, phone number of the other person authorized for concluding the legal transaction or enabled him to examine the exact location of the required real estate.  
The following is not included in the amount of the Commission Fee: translation of the Preliminary Agreement, of the Real Estate Sale and Purchase Agreement, of Clausula Intabulandi and of Cancelling Clause, and of other documentation that might be necessary for the Principal to sell the real property into the language by Principal’s choice, court fees for pre-registration, justifying the pre-registration, registration, recordation and alike, costs of Notary Public, costs incurred in providing other documentation by the court, State Geodetic Administration, administrative departments of competent bodies of local and/or regional self-administration units or other bodies, and any other additional costs that might arise due to providing documentation required for realization of the sale and purchase of the said real property.

If the Broker provides the said documentation for the Principal, the Principal is obliged to reimburse the incurred costs to the Broker, in the amount of the actual costs, including the amount of administrative fees, material costs, travel expenses and time spent to obtain the documentation, etc.
Furthermore, if the real property is located outside the area of the island of Krk or is more than 30 (in words: thirty) km from the Broker’s headquarters, the Principal undertakes to pay the Broker's travel expenses for the departure to the specified area (travel expenses amount to 0.40 EUR/km). If a contract is concluded with a third party for the purpose of buying and selling real property that is located outside the area of the island of Krk or that is more than 30 (in words: thirty) km from the Broker's headquarters, travel expenses will be included in the amount of the Broker's Commission Fee and will not be charged additionally.
 

Right to Brokerage Fee
The Broker shall gain right to the fee only after the contract which he mediated for has been concluded unless the broker and the principal agreed that the right to fee payment is gained already when the preliminary contract is concluded. 
The Broker cannot require partial fee payment in advance i.e. prior to concluding the contract that is the preliminary contract in line with Paragraph 1 of this Article. The Broker can collect costs for additional services related to the transaction that is a subject of brokerage in the amount of real costs if this is separately agreed between the broker and the principal.
After termination of the contract the Broker is entitled to the fee within 12 months unless otherwise is agreed with the contract and in cases when the principal enters with the third person into a legal transaction that is a consequence of broker’s activities prior to the termination of the brokerage contract. 
The Broker has no right to the brokerage fee if he himself as the party concludes the contract that was a subject of brokerage i.e. if such an agreement with the principal is concluded by the agent that performs brokerage for the broker, however he is entitled to claim damages from the employee in line with labour regulations.     
The Principal shall be obliged to pay the Broker the brokerage fee if marital i.e. extra-marital spouse, principal’s descendant or parent that is a company or other legal person who is a principal i.e. his marital or extra-marital spouse, descendant or parent founder or responsible person, i.e. with whom he has a concluded employment agreement or service agreement, concludes the mediated legal transaction with the person who the broker connected the principal to.   
 

Professional Competence
The Broker is to be professionally trained for brokerage in the real estate business or have an employed agent that is professionally trained for brokerage in the real estate business.
Professional competence from Paragraph 1 of this Article is proved by passing the professional exam for brokerage in the real estate business from Article 30 Real Estate Trading Act (“NN”
107/07, 144/12, 14/14, 32/19).
 

Third-Party Liability Insurance
The Broker has an insurance policy with an insurance company in the Republic of Croatia against liability for damage that could be caused to the Principal or third parties by performing brokerage in the amount of 1,000,000.00 HRK, i.e. 132,722.81 EUR, while in accordance with the provisions of the Civil Procedure Act, for damage that the Broker could cause by performing brokerage, the lowest insured sum cannot be less than HRK 200,000.00, i.e. EUR 26,544.56 per one harmful event, HRK 600,000.00, i.e. EUR 79,633.69 for all compensation claims in one insurance year.

Protection of personal data
The intermediary processes personal data in accordance with the General Data Protection Regulation. The processing of personal data is determined by internal procedures and documents with which the client undertakes to become acquainted before concluding a contractual relationship.
 

Complaint
The Broker enables users the service of filing a complaint in his business premises.
The complaint can also be filed by post, telefax and electronic mail. 

The Broker shall respond to the complaint immediately and within 15 days at latest from the day when the complaint was received.

                                                           Settling Disputes
In case of dispute between the broker and the Principal in relation to legal relationships that occur based on the Brokerage Contract, the Municipality Court in Crikvenica shall be the competent court.

                                                                Final Provisions
Provisions of the Act on Brokerage in Real Estate Business and Real Estate Trading Act(“NN”
107/07, 144/12, 14/14, 32/19), Civil Obligations Act of the Republic of Croatia (“NN”  number 35/05, 41/08, 125/11, 78/15, 29/18) shall apply to the relationships between the Broker and the Principal that are not governed with these General Terms and Conditions or with the Brokerage Contract.  
These General Terms and Conditions are available on a visible place in Broker’s business premises and on the website:
http://www.premium-nekretnine.com/real-estate-krk-croatia .


Malinska, 16.01.2023