I. INTRODUCTION
These General terms and conditions govern the business relationship between Ozana d.o.o. Dvorničićeva 33, 10 000 Zagreb, OIB: 75150259676, registered and licensed to carry out mediation services, under entry number of the Croatian Chamber of Commerce 663/2009 as Broker (hereinafter referred to as the “Broker”) and Client (physical or legal person).
Mediation in real estate transfer consists of Broker`s actions related to connecting the Client and third party, as well as negotiations and preparations for conclusion of legal transaction that are subject to a particular property, especially when purchasing, selling, renting, leasing etc.
Real properties are the particle of land surfaces along with everything that is permanently connected to land on, or below the ground, in accordance with the provisions of the general property and other real property regulations.
Client is a physical or legal person who concludes a written Brokerage Agreement (seller, buyer, lessee, lessor, landlord, tenant and other potential real estate participants).
A third person is a person whom the Broker intends to associate with the Client to negotiate the conclusion of legal transactions for which the property is subject to a real estate transaction.
Brokerage fee is an amount that the Client is required to pay to the Broker for mediation services.
II. BROKERAGE AGREEMENT
The General Terms and Conditions are an integral part of the Brokerage Agreement concluded between the Broker and the Client. The Brokerage Agreement shall be binding on the Broker to liaise with the Client for a purpose of negotiating and concluding a specific legal transaction on the transfer or establishment of a particular property right, and the Client agrees to pay a certain brokerage fee if that legal transaction is concluded. The contract is concluded in writing and at a definite period.
III. OBLIGATIONS OF THE BROKER
By the Brokerage Agreement, the Broker undertakes to perform particularly the following:
- introduce the Client to the third party for the purpose of contract signing for the commissioned transaction,
- inform the Client about the value of the subject property, as well as an average market price of a similar property,
- check the documents proving the ownership or any other proprietary rights on the subject property,
- to inform the Client with all legal, tax and other obligations that are a result of the real estate sale or rent,
- to advertise the property on his own website and in specialized advertising printed matters and internet portals, all in agreement with the Client,
- act as mediator during negotiations, as to achieve the signing of the agreement,
- keep confidential personal data of the Client and, upon the written request of the Client, keep as business secret the data referring to the property in question, or in connection with the property or transaction commissioned,
- inform the Client about any conditions relevant to the potential transaction he knows about,
- to inform the Client about the provisions of the Law on the Prevention of Money Laundering and Terrorist Financing (Narodne novine 87/08).
Upon the conclusion of a sales agreement, the Broker may, upon the request of Client-Buyer, perform the following:
- in cooperation with a lawyer’s office representing the Broker, to perform a transfer of the ownership in the Land Registry,
- execute registration of the Client-Buyer as a new user with communal utilities companies.
IV. OBLIGATIONS OF THE CLIENT
By the Brokerage Agreement, the Client undertakes to perform particularly the following:
- to inform the Broker of all circumstances relevant for performance of the transaction commissioned, and provide accurate information on the subject property, which accuracy the Client guarantees by signature of the Brokerage Agreement,
- submit for Broker´s review documents evidencing the ownership of the property he mediates, or any other real property right in rem, and to alert the Broker to all registered and unregistered encumbrances existing on the property,
- to present the Broker location and construction permits, as well as operating license,
- to enable the Broker and a third party interested in conclusion of a legal transaction, a visit of the property,
- to notify the Broker in writing of any changes in regard with the commissioned transaction he has authorized Broker to, and in particular of any change related to the property ownership,
- to conclude a legal transaction with a person, whom the Broker has found, for a mutually agreed price,
- to pay the brokerage fee after the conclusion of the legal transaction.
V. BROKERAGE FEE
The amount of the brokerage fee is determined by the Brokerage Agreement. The Mediator is entitled to a brokerage fee in the moment of conclusion of a legal transaction, and the Client is obliged to pay the brokerage fee on the day or in the period stated in The Brokerage Agreement of the conclusion of the legal transaction he mediated, i.e. signature of a Pre-agreement or Agreement.
In the event that a concluded legal transaction includes the conclusion of a pre-agreement by which the Client and a third party are obliged to conclude the main agreement in relation to the property which is the subject of mediation, and by which the contractual down payment and/or part of the contracted purchase price has been paid before the conclusion of the main sales agreement, the Client is obligated to pay the brokerage fee to the Broker in two parts, out of which the first is due on the date or in the period stated in The Brokerage Agreement of payment of the down payment and/or part of the contracted purchase price or in the period stated in The Brokerage Agreement and the second on the date of the payment of the rest of the purchase price or in the period stated in The Brokerage Agreement.
If, within 12 (twelve) months following the expiry or cancellation of the Brokerage Agreement, an agreement between the parties, which had been mediated by the Broker, has been concluded, the Client is obliged to pay the Broker the agreed brokerage fee in full. By a Brokerage Agreement, the Client may undertake not to engage any other Broker for the mediated business, which obligation must be expressly contracted (exclusive brokerage).
If during the term of an Exclusive Brokerage Agreement, the Client made a legal business through another broker, which business was exclusively given to the Broker, he is obliged to pay the exclusive Broker an exclusive brokerage fee.
The Broker determines below brokerage fee rates, which are in accordance with Art. 27 and 28 of the Real Estate Brokerage Law (Narodne novine 14/14).
Sale / Purchase
Brokerage fee is charged both to the seller and the buyer in percentage of the agreed purchase price, as follows:
For the seller
- 2-3% of the agreed purchase price, but not less than HRK 7.500,00 (seventhousandfivehundred kuna).
For the buyer
- 2% of the agreed purchase price, but not less than HRK 7.000,00 (seventhousand kuna).
The total amount of the brokerage fee must not exceed 5% of the property purchase price.
VAT is applied on all above stated amounts of brokerage fees.
Rent / Lease (commercial and residential lettings)
Brokerage fee is charged to the lessor and the lessee (tenant) in percentage of the agreed monthly rent, as follows:
- 75 % minimum
- 100 % rent / lease for a period of 1–4 years (from 12 to 48 months)
- 150 % rent / lease of 4+ years (from 49 months and more)
In the event that the Client gives an order to perform the activities not covered by Article III. of these General Conditions, the brokerage fee amounts to HRK 350.00 (three hundred and fifty kuna) per hour of the Broker’s engagement.
VAT is applied on all above stated amounts of brokerage fees.
VI. FINAL PROVISONS
For all other matters not expressly determined by these General Terms and Conditions or the Brokerage Agreement, the provisions of the Real Estate Brokerage Law, Law on Obligatory Relations and other law regulations shall apply.
All disputes between the Client and the Broker will be settled amicably. Failing that, they agree a jurisdiction of the competent court in Zagreb.
OZANA d.o.o. November 2019