General Terms and Conditions

In accordance with the provisions of the Real Estate Brokerage Act ("Official Gazette" number: 107/07, 144/12, 14/14, 32/19), the agency "Splitski Vali" d.o.o. with its registered office in Split, adopts the following general terms and conditions.
I GENERAL PROVISIONS

The General Terms and Conditions of Real Estate Brokers (hereinafter: General Terms and Conditions) regulate the business relationship between the real estate brokerage agency (hereinafter: the Broker) and a natural or legal person (hereinafter: the Principal), who concludes a written Brokerage Agreement with the Broker. The General Terms and Conditions are an integral part of the Brokerage Agreement concluded between the Broker and the Principal.

II OFFER OF PROPERTIES

The offer of properties is based on the information received by the Broker in writing or orally by the Principal. 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 (leased) or the owner has abandoned the sale (lease).
The offers and notices of the Broker must be kept as a trade secret by the recipient (Principal) and may only be transferred to third parties with the written approval of the agency. If the recipient of the offer is already familiar with the properties offered by the Broker, he/she is obliged to inform the agency thereof without delay.

III OBLIGATIONS OF THE BROKER

By the Real Estate Brokerage Agreement, the Broker undertakes to perform the following in particular:
1    Seek to find and connect with the Principal a person for the purpose of concluding the brokered work.
2    Familiarize the Principal with the average market price of a similar property.
3    Inspect the documents proving the ownership or other real right in the property in question and warn the Principal of:

  • obvious deficiencies and possible risks related to the unregulated land registry status of the property;
  • registered property rights or other rights of third parties on the property;
  • legal consequences of non-fulfillment of obligations to 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 pre-emption and restrictions in legal transactions in accordance with special regulations.

4    Perform the necessary actions to present the property on the market, advertise the property in an appropriate manner and perform all other actions agreed in the real estate Brokerage Agreement that exceed the usual presentation, for which he/she is entitled to special, previously stated costs.
5    Enable inspection of the property.
6    Mediate in negotiations and endeavour to conclude the Agreement.
7    Keep the personal data of the Principal and, upon the written order of the Principal, keep as a trade secret the data on the property for which he/she mediates, or in connection with that property or in connection with the business for which he/she mediates.
8    If the subject of the Agreement is land, check the purpose of the land in question in accordance with the applicable regulations on physical planning relating to that land.
9    Inform the Principal of all circumstances relevant to the intended work that are known to him/her or must be known to him/her.

It is considered that the Broker has enabled the Principal to liaise with another person (natural or legal) to negotiate for the conclusion of the mediated business, if the Principal has been enabled to contact another person with whom he/she has negotiated for the conclusion of a legal transaction, and in particular if he/she:

  • directly took or instructed the Principal or a third party to inspect the property in question;
  • organized a meeting between the Principal and another contracting person in order to negotiate the conclusion of a legal transaction;
  • communicated to the Principal the name, telephone number, fax, e-mail of another person authorized to conclude a legal transaction or communicated to him/her the exact location of the requested property.

IV OBLIGATIONS OF THE PRINCIPAL

By signing the real estate Brokerage Agreement, the Principal undertakes to perform in particular the following:
1    Inform the Broker of all circumstances that are important for the provision of brokerage services and present accurate information about the property, and if so – give the Broker an insight into the location, construction or use permit for the property that is the subject of the Agreement and provide the Broker with evidence of the fulfillment of obligations to a third party.
2    Provide the Broker with documents proving his/her ownership of the property, or other real right to the property that is the subject of the Agreement, and warn the Broker of all registered and unregistered encumbrances that exist on the property.
3    Provide the Broker and a third party interested in concluding the Agreement with the opportunity to view the property.
4    Inform the Broker of all relevant information about the requested property, including in particular the description of the property and the price.
5    After concluding the mediated legal transaction, i.e., the Preliminary Agreement by which he/she undertook to conclude the mediated legal transaction, if the Broker and the Principal have agreed that the right to pay the brokerage fee is acquired already at the time of concluding the Preliminary Agreement, the Principal shall pay the Broker the brokerage fee, unless otherwise agreed.
6    If agreed, reimburse the Broker for costs incurred during the brokerage, which exceed the normal costs of the brokerage.
7    Inform the Broker in writing of any changes related to the business for which he/she has authorized the Broker, in particular changes related to ownership of the property.
The Principal is not obliged to enter into negotiations for the conclusion of a mediated transaction with a third party found by the Broker, nor to conclude a legal transaction, and the provision of the Agreement by which it is agreed otherwise is null and void. The Principal shall be liable for damages, if he/she has not acted in good faith and is obliged to reimburse all costs incurred during the brokerage, which cannot be higher than the brokerage fee for the mediated work.

V BROKERAGE FEE

The Broker is entitled to the brokerage fee, the amount of which is determined by the Brokerage Agreement. The amount of the fee must not exceed 6% of the purchase price of the property.
The Broker acquires the right to a fee in full at the time of conclusion of the mediated transaction, i.e., by signing the Agreement or Preliminary Agreement by which the Principal undertook to conclude the mediated legal transaction. The fee is paid to the Broker at the moment of signing the Preliminary Agreement or Agreement.
The Broker may agree on the right to reimbursement of costs necessary for the execution of the orders and request that the funds for certain expenses be advanced to him/her.

The Principal is also obliged to pay a fee when he/she has concluded with the person with whom the Broker has brought him/her into contact a legal transaction, which is different from the one for which he/she mediated, which is of the same value as the legal transaction, or which achieves the same purpose as the mediated legal transaction.
The Broker is entitled to a fee if the spouse, or common-law partner, descendant or parent of the Principal concludes a mediated legal transaction with the person with whom the Broker has brought the Principal into contact.
If the Principal withdraws during the conclusion of the mediated business, he/she is obliged to pay real costs in terms of time spent, advertising and other costs.
In the event of brokerage, in which the contracting party itself or through a third party found an interested person, the Broker may, in accordance with his/her conscience, charge the actual costs incurred in connection with the business in question.
Fee Amounts
The aforementioned percentages are paid as a brokerage fee and VAT is charged on them. Purchase – The brokerage commission is 2-4% of the achieved property price.
Sales – The brokerage commission is 2-4% of the achieved property price.
Replacement – When exchanging properties, a commission of 2-3% is charged to each party in the exchange, and the percentage is calculated from the value of the property acquired by the party by the exchange.

Rent/Lease
In the case of a rent/lease agreement (agreed rent/lease duration of 5 years), 6% of the monthly rent/lease shall be charged.
For rent/lease agreements longer than 5 years, 6% of the monthly rent/lease shall be charged.
In the case of Principals with whom the Broker has an exclusive Brokerage Agreement, the fee is charged according to the amount agreed and specified in the said Agreement.

VI TERMINATION OF THE AGREEMENT

The Brokerage Agreement is concluded for a definite period of time and terminates upon the expiration of the period for which it was concluded, if the Agreement for which it was mediated has not been concluded within that period or if either of the contracting parties has terminated the Agreement. The Principal is obliged to reimburse the Broker for the costs incurred for which it was otherwise expressly agreed that the Principal shall pay them separately.

The parties may withdraw from the real estate Brokerage Agreement before the expiration of the agreed deadline only for a particularly justified reason. In this case, the Principal is obliged to reimburse the Broker for the costs incurred.
If, within a period, not longer than the duration of the concluded Brokerage Agreement, after the termination of that Agreement, the Principal concludes a legal transaction that is predominantly the result of the Broker's action before the termination of the Brokerage Agreement, he/she shall pay the brokerage fee in full, unless otherwise agreed in the Agreement.

VII FINAL PROVISIONS AND DISPUTE RESOLUTION
The provisions of the Real Estate Brokerage Act and the Civil Obligations Act shall apply to relations between the Principal and the Broker arising from Brokerage Agreements that are not governed by the General Terms and Conditions or the Brokerage Agreement.
For possible disputes, the Municipal Court in Split has jurisdiction. In Split, November 2018.