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Croatia Property Service

Croatia Property Service

‘The Broker’ is a company incorporated under the laws of the Republic of Croatia whose principal scope of business is real estate agency services;

The Broker agrees to provide the Principal with the real estate agency services in connection to the purchase of the property and the Principal agrees to pay the Broker for such services the fee as defined below. The list of real estate agency services that are provided as part of this agreement are defined in article 21 of the Croatian real estate law a copy of which is provided.

The Principal agrees to pay the Broker the fee of the contractual price of the property. The payment is to be made in accordance with and proportionately to each payment the Principal makes to the Seller up to and including the final payment. The ‘fee’ is to be paid by the Principal within 8 days from the date the payment is made.

Should the Principal enter into an agreement to buy the property with the Seller introduced by the Broker at anytime after the agreement, but within a maximum period of 5 years, the Principal agrees to pay the Broker the fee in accordance with all other terms of the agreement.

Beside the fee paid by the Principal, the Broker is entitled to charge the Seller and/or a corresponding fee.

The fee does not include any of the costs of selling the property. These include but are not limited to; legal fees, notary fees, court fees, accountancy fees, land registry and cadaster fees, property tax, VAT and so forth.

 

Article 21 from the Croatian Law On Real Estate – Broker’s Role

By signing a Representation Agreement, the Broker’s obligations are in particular the following:

  1. Try to find and bring in contact with the client a person interested to make a property sale or purchase deal with this client;

  2. Inform the client of the average price of similar properties;

  3. Inspect all available documentation proving ownership or any other actual rights over the property in question and point out the following to the client:

  • Obvious flaws and possible risks involved with the unresolved Land Registry status of the property,

  • Registered actual or other rights over the property by a third party,

  • Legal consequences of failure to fulfill obligations to the third party,

  • Lack of building and/or usage permits according to special laws,

  • Circumstances of the obligation to apply pre-emption rights and restrictions in the legal system in accordance with special regulations,

  1. Undertake necessary actions in order to introduce the property to the market, place appropriate advertisements, and perform any other actions agreed upon in the Representation Agreement which would exceed usual presentation, and which can be charged separately as listed in advance in the Representation Agreement,

  2. Facilitate viewings of the property,

  3. Take part in negotiations and try to reach the conclusion of a sales-purchase contract, if this was agreed separately,

  4. Keep personal data of the client a business secret, as well as, upon a written order by the client, keep the information on the property, or connected to the property or the contract, a business secret.

  5. If the subject property is land, check the purpose of the land according to the regulations of development plans referring to this particular site.

  6. Inform the client on all circumstances which are important for the intended deal, and which are familiar, or must be familiar to the Broker.