Terms and Conditions

Pursuant to the provisions of the Real Estate Brokerage Act (Official Gazette, no. 107/07), Real Estate Agency TERRA DALMATICA d.o.o. adopts the following

GENERAL TERMS OF BUSINESS

These General Terms of Business determine the business relationship between the Terra Dalmatica d.o.o. Real Estate Agency (hereinafter “Terra Dalmatica”) acting as the Agent and the Principal (a natural or legal person). By concluding the Brokerage Agreement, the Principal acknowledges its being acquainted with the provisions of Terra Dalmatica’s Terms of Business and that it agrees to these Terms. The Principal, according to these Terms, is a natural or legal person being a party to the Brokerage Agreement or Brokerage Order. Terra Dalmatica’s offer comprises information received in speech or writing and is subject to confirmation. Terra Dalmatica reserves the possibility of error/mistake in real estate description and price which may occur due to incorrect information or change in conditions of sale not being submitted in writing, as well as the possibility that an advertised property has already been sold (or rented) or that the owner desisted from sale (or lease/rent). The receiving party (Principal) shall keep any offers and notifications from Terra Dalmatica a business secret and transfer such offers and notifications to third parties only with a written consent of the Agency. Should the receiving party already be informed of the real estate offered by Terra Dalmatica, the receiving party shall immediately notify the Agency of such knowledge.

Terra Dalmatica’s obligations

  1. Conclude a Brokerage Agreement with the Principal in writing (standard or exclusive);
  2. Make efforts to find and bring into contact with the Principal a third party to conclude the brokered business transaction;
  3. Inform the Principal of the average market price of similar real estate;
  4. Inform the Principal of legal and physical disadvantages of a real estate;
  5. Inspect any documents which serve as the proof of ownership or any other actual right regarding such real estate and warn the Principal against any evident disadvantages and potential risks due to unclear land registry status of such real estate;
  6. Take necessary actions to present the real estate on the market and advertise such real estate in the manner stipulated by the Agency;
  7. Enable a tour of the real estate,
  8. Keep the Principal’s personal information and other information as provided by the Principal a business secret,
  9. Inform the Principal of any circumstances known to the Agency which bear significance to the intended business activity.
  10. Act as the agent during the negotiations and make efforts to validly complete real estate transaction;
  11. Participate as a present party in concluding real estate transaction (Pre-Agreement and Agreement);
  12. Participate as a present party in the takeover of the real estate being the subject of the transaction;
  13. Should the real estate in question be a land property, verify the intended purpose of such property in line with physical planning regulations applicable to such property.
  14. Should the Principal properly authorise Terra dalmatica, the Agency shall perform the following on behalf of the Principal: following an agreement of parties, prepare a Real Estate Purchase/Sale/Trade/Lease Pre-Agreement and Agreement in cooperation with a partnering law firm, arrange for verification of the parties’ signatures by a Notary Public, perform all necessary actions to complete the business transaction in case of a bank loan, file taxes and perform other actions related to revenue service, submit valid documentation to change utility invoicing from seller to buyer for water, electricity, waste disposal etc., prepare a proposal for the registration of property rights over the purchased estate and implement the transfer of property rights to the Buyer at a land registry department of a competent Municipality Court.
Terra dalmatica shall be deemed to have enabled the Principal to contact another party (natural or legal) in order to conclude brokered transaction provided that the Principal is enabled to make contact with the other party with whom it negotiated such business transaction, particularly if the Principal has directly taken or sent the Principal or a third party on a tour of the real estate in question, arranged for a meeting between the Principal and another contracting party to negotiate the respective business transaction, or provided the Principal with the name, phone number, fax number, email address of the other party authorized to conclude a real estate agreement, or given him the exact location of the sought real estate.

Principal’s obligations

  1. Conclude a written Brokerage Agreement with Terra dalmatica (standard or exclusive).
  2. Inform Terra dalmatica of any circumstances bearing significance to the performance of brokerage and provide correct information regarding the real estate in question, and, if possible, submit to the Agent a location, building or use permit for the real estate which is the subject of the agreement and advise the Agent of any registered and unregistered burdens on the property as well as submit to the Agent any evidence on its fulfilment of obligations toward any third party.
  3. Submit to the Agent any documents proving its ownership of the real estate or any other actual right over the real estate which is the subject of agreement and warn the Agent of any registered and unregistered burdens on the property. In case that the Principal is a legal person, also submit evidence that the natural person signing the order is authorized to represent the legal person.
  4. Provide an opportunity for Terra dalmatica and a third party interested to conclude the brokered transaction to take a tour of the real estate with the presence of a Terra dalmatica employee.
  5. Inform Terra dalmatica in writing of any new relevant data regarding the sought real estate which particularly includes description, ownership status and price of the real estate.
  6. Immediately following the conclusion of the brokered business transaction, i.e. binding pre-agreement, if Terra dalmatica and the Principal have agreed that the right to broker’s remuneration (commission) is enforceable upon the execution of the pre-agreement, the Principal shall make payment of the commission to the account of Terra dalmatica, unless otherwise agreed.
  7. If explicitly agreed, reimburse the costs resulting from mediation and exceeding regular brokerage costs to the benefit of Terra dalmatica.
  8. The Principal shall be responsible for damages, unless proceeding in good faith, resulting from its fraudulent conduct, withholding information or providing incorrect information relevant to brokerage activities in order to conclude the business transaction, whereat such costs shall not exceed brokerage remuneration for the brokered business transaction.
Acquisition of remuneration rights in case of business transaction completed between the Principal and a third party and brokered by the Agency. The Principal shall pay the agreed broker’s remuneration to the Agent. The Agent shall acquire the right to collect broker’s remuneration as of the moment when brokered business transaction is concluded between the Principal and a third party. Such transaction shall be deemed concluded when the Principal and the third party reach an agreement with regard to contract subject and its price, i.e. at the moment of execution of the agreement, pre-agreement and/or deposit payment with the third party whom the Agent brought into contact with the Principal, for the real estate owned by the third party or a member of its family, notwithstanding such person not being listed in the Brokerage Agreement or Brokerage Sheet. Broker’s commission shall cumulatively include any costs incurred by the Agent during brokerage activities and with the payment of such commission the Agent’s right to reimbursement shall cease. This provision shall not apply to costs incurred from activities when the Agent in agreement with the Principal performs additional services for the Principal in connection with the subject of business transaction which are not included in regular brokerage activities. Agreed brokerage commission shall not include court fees for registration, conditional registration, recordation, notary public’s fees for document validation, title deed fees, cadastral plan copies, identification, mortgage transfer, fees for mortgage relief, certificates and other documents in connection with the completion of real estate transaction. The Agent shall bear the reasonable costs of legal advisor fees for the preparation of the Legal Transaction Agreement for the brokered transaction, but only if such services are rendered by a legal advisor who has concluded a cooperation agreement with the Agent. Broker’s commission for sale, purchase, trade, lease and rent of any real estate shall be determined in accordance with the respective Brokerage Agreement. Terra dalmatica may negotiate the right to reimbursement of costs necessary for the order to be carried out and request advance payment for certain expenses. The Principal shall pay remuneration to Terra dalmatica also in the case when a legal transaction concluded with a third party brought into contact with the Principal by Terra dalmatica, even if such legal transaction is different than the one that was initially brokered for, provided that such legal transaction is of the same value as the initial legal transaction, i.e. accomplishing the same purpose as the brokered legal transaction. Terra dalmatica shall be entitled to remuneration if a spouse, partner, descendant or parent of the Principal concludes brokered legal transaction with a party whom the Principal’s Agency brought into contact with the Principal. The Agent shall not be entitled to broker’s commission if the Agent concludes a brokered agreement with the Principal as an independent party or if such agreement is made bay an agent who performs brokerage transactions on behalf of the Agent.

Commission fees

PURCHASE

Terra dalmatica’s commission fee amounts to 3% (+ VAT ) of the agreed real estate price. The commission shall be charged if agreed and if Terra dalmatica has received a written or oral order from the buyer in search of real estate property. In case where Terra dalmatica holds an exclusive Brokerage Agreement, the commission shall be charged according to the amount agreed and stipulated by such Agreement.

SALE

Terra dalmatica’s commission fee amounts to 3% (+ VAT ) of the agreed real estate price. In case where Terra dalmatica holds an exclusive Brokerage Agreement, the commission fee shall be charged according to the amount agreed and stipulated in such Agreement.

TRADE

Terra dalmatica’s commission fee shall amount to 2% (+ VAT ) and shall be charged to each of the trading parties, and this percentage shall be calculated from the value acquired by a party from such trade.

LEASE/RENT

In case of a Lease/Rent Agreement, percentage of monthly rent shall be charged in the following manner: commission from lessor and landlord 75% (+ VAT ) minimum 100% (+ VAT ) for leases/rents for periods 12-39 months, 150% (+ VAT ) minimum for lease/rent for periods of 60 months (five years) and longer Commission from lessee and tenant 75% (+ VAT ) minimum for lease or rent 100% ( + VAT ) for periods 12-59 months 150% (+ VAT ) minimum for lease or rent for periods for 60 months (5 years) and longer

Broker’s hourly rate

If explicitly agreed, the broker may render other services on behalf of the Principal in connection with a transaction being the subject of business agreement which exceed normal brokerage costs in which case the broker’s hourly rate shall amount to HRK 200.00 (+ VAT ).

Termination of Agreement

In case that the parties do not agree upon a period of validity of their brokerage agreement, such agreement shall be deemed to have been made for a defined period of 12 months which may be extended on multiple occasions. Such an agreement, made for a definite period of time shall cease to be valid with the expiry of its period of validity if within such period no agreement is concluded for which brokerage activities have been performed or by termination initiated by any of the parties. The principal may cancel a brokerage order provided that such cancellation does not conflict with the principle of good faith. Accordingly, cancellation procedure may not come in adverse circumstances with the intention to deprive the agent of its right to remuneration or purposefully impair its right to remuneration. Should the Principal in the course of duration of the brokerage order or following its cancellation, no longer than two years, without informing the Agent concludes a legal transaction with a party whom the Agent brought into contact with the Principal, or concludes such transaction employing another agent, it shall be deemed that the Principal proceeded contrary to good faith (within the meaning of the Civil Obligation Act, Article 12) and shall pay the broker’s commission to the Agent in its total amount. The Principal shall compensate for the costs incurred by the Agent which were otherwise agreed to be paid separately by the Principal. If within a period no longer than the period of duration of the concluded brokerage agreement following the expiry of this agreement the Principal concludes a business transaction which is prevalently a result of the Agent’s action prior to the expiration of the brokerage agreement, the Principal shall pay the entire amount of the broker’s commission. Terra dalmatica’s General Terms of Business availability Terra dalmatica’s General Terms of Business are available at the registered office of Terra dalmatica in Šibenik, Obala hrvatske mornarice 1, on www.terradalmatica.hr website and will in short form be available on standard brokerage orders (agreements) of the Terra dalmatica Agency.

Miscellaneous and court jurisdiction

Any relations between the Principal and Agency not mentioned in these General Terms of Business or a brokerage agreement shall be subject to the provisions of the Real Estate Brokerage Act and Civil Obligations Act. Any disputes shall be under the jurisdiction of the competent court in Šibenik.