General terms and conditions

 
Pursuant to the provisions of the Real Estate Brokerage Act (Official Gazette no 107/07) and Act Amending the Real Estate Brokerage Act (Official Gazette Nos 107/07, 144/12, 14/14), the company Erste nekretnine d.o.o., Ivana Lučića 2, 10000 Zagreb (hereinafter referred to as: “ENEK”), hereby lays down the following:

GENERAL TERMS AND CONDITIONS
I INTRODUCTORY PROVISIONS
Article 1
 
The General Terms and Conditions (hereinafter referred to as: “GTC”) contain provisions on the following in particular:
  • terms and conditions of ENEK’s real estate brokerage services as well as the description of the actions that ENEK is obliged to carry out when providing such services,
  • types of real estate brokerage agreements, their conclusion, fulfilment and termination,
  • rights and obligations of ENEK and the Principal,
  • broker’s commission and any other costs,
  • other business operations carried out in the framework of the registered business activities.
Article 2

Certain expressions in this GTC have the following respective meanings:

(1) Real estate brokerage shall mean actions of the Broker (ENEK) related to connecting the Principal and a third party as well as the negotiations and preparations for a legal transaction in which the subject matter are specific real estate operations, particularly a sale, swap, purchase, rental etc.

(2) The Broker (ENEK) in real estate operations shall mean a company, salesperson as a natural person or entrepreneur, registered for real estate brokerage, with a registered seat on the territory of the Republic of Croatia. A real estate broker may also be a company, salesperson as a natural person or entrepreneur, registered for real estate brokerage, with a registered seat on the territory of the state party to the Agreement on the European Economic Area.

(3) The Principal shall mean a natural person or legal entity, a foreign or Croatian national, who concludes a brokerage agreement with ENEK (a seller, buyer, lessor, lessee or any other participant in real estate operations).

(4) Real estate shall mean plots of land, together with anything permanently connected to the land on the surface or below it in accordance with the provision of the general regulations on ownership and other real rights.

(5) A contractual partner shall mean an entrepreneur registered for real estate brokerage who deals with real estate brokerage in accordance with the Real Estate Brokerage Act (Official Gazette Nos 107/07, 144/12, 14/14), who possesses a valid decision on the compliance with the requirements for real estate brokerage, and who has the business contacts, know-how, and administrative, technical and IT solutions, knowledge and experience for a successful fulfilment of their obligations laid down in the agreement on the business and technical cooperation concluded with ENEK.

(6) Appraisal shall mean a business operation conducted by ENEK within the scope of its registered business activities, and refers to the assessment of the market value of real estate.

(7) Supervision shall mean a business operation conducted by ENEK within the scope of its registered business activities, and refers to the supervision of dedicated spending of credit funds.

II BROKERAGE AGREEMENT

Article 3

(1) The Brokerage Agreement (hereinafter referred to as: “the Agreement”), ENEK undertakes to endeavour to find and bring into contact with the Principal a third party for the purpose of negotiations and conclusion of a valid real estate purchase agreement, appropriate for the transfer and acquisition of ownership rights, while the Principal undertakes to pay to ENEK the agreed broker’s commission if that legal transaction is concluded.

(2) The Agreement shall be concluded in writing for a determinate period of time. The Agreement shall be considered to have been concluded once it is signed by both contracting parties.

(3) If ENEK and the Principal do not agree on the duration of the Agreement, the Agreement shall be considered to have been concluded for a determinate period of 12 months, with multiple extensions by means of appropriate annexes to the basic Agreement being possible.

(4) The commitments between ENEK and the Principal shall be subject to the provisions of the law of obligations.

Article 4
Contents of the Agreement
(1) The Agreement shall contain information on ENEK, the Principal, the type and essential contents of the transaction being brokered, the broker’s commission, deadline and terms of payment of the broker’s commission, as well as any other costs arising when ENEK, in agreement with the Principal, provides for the Principal other services in connection with the transaction that is the subject matter of the brokerage.

(2) The Agreement may also contain other information connected to the transaction being brokered.

Article 5

Exclusive brokerage

(1) The Agreement binds the Principal not to hire any other broker for the transaction being brokered, i.e. that they will not sell the real estate themselves or in any other manner – the Exclusive Brokerage Agreement, the obligation of which must be expressly agreed, while ENEK shall, in particular, warn the Principal of the meaning and legal consequences of that provision.

(2) If, during the term of the Exclusive Brokerage Agreement and without the knowledge of EMEK, the Principal concludes a legal transaction via another broker, which transaction was entrusted to the exclusive broker by means of a brokerage order, the Principal shall pay to the exclusive broker the agreed broker’s commission as well as any other real costs incurred in the course of the brokerage for the transaction concerned.

Article 6
Termination and expiry of the brokerage agreement

(1) An agreement concluded for a determinate period of time shall expire upon expiry of the period for which it was concluded if a brokered agreement was not concluded in that period or if any of the parties terminated it. The notice period shall be set out in the brokerage agreement, and the agreement shall be terminated upon delivery of the notice via mail or via another person authorised for postal services, by registered mail.

(2) The Principal shall reimburse to the broker the costs for which it was expressly agreed that the Principal shall pay them in particular.

(3) If, within 12 months following the expiry or termination of the Agreement, the Principal concludes a legal transaction which is a consequence of ENEK’s operations prior to the expiry or termination of the Agreement, the Principal shall pay to ENEK the broker’s commission in full, except as otherwise provided for by the Agreement.

(4) The provisions of this Article also refer to the expiry or termination of the Exclusive Brokerage Agreement.


III RIGHTS AND OBLIGATIONS OF THE CONTRACTING PARTIES

III. I BROKER’S OBLIGATIONS

Article 7

(1) In its brokerage operations or other operations connected with the transaction being brokered, ENEK must act with due care, according to the rules and customs of the profession (due care of a prudent professional).

(2) When advertising in the press or other written and electronic media, on its premises or other location where advertising in connection with the real estate that is subject to the business operations, ENEK shall publish its company.

Article 8
In the brokerage agreement, the Broker shall undertake the following in particular:
  1. to endeavour to find and bring into contact with the Principal a person for the purpose of concluding the brokered transaction,
  2. to acquaint the Principal with the average market price of comparable real estate,
  3. to obtain and inspect documents proving ownership or other real rights over the real estate concerned,
  4. to take any measures necessary to present the real estate on the market and advertise it appropriately,
  5. to enable the real estate to be toured,
  6. to act as an intermediary in negotiations and endeavour to achieve the conclusion of an agreement,
  7. to keep the confidentiality of the Principal’s personal data, and upon written order by the Principal, keep as a business secret the information on the real estate being brokered or information in connection with that real estate or with the transaction being brokered,
  8. if the subject matter of the conclusion of the agreement is land, to check the purpose of the land concerned in accordance with the regulations on physical planning applicable to that land,
  9. to notify the Principal of all circumstances relevant for the intended transaction which it is familiar with or which it must be familiar with.
Article 9

(1) ENEK shall be considered to have enabled contact between the Principal and a third party for the purpose of negotiations for the conclusion of the transaction being brokered if it:
  • directly led or directed the Principal to tour the real estate concerned,
  • organised a meeting between the Principal and the third party for the purpose of negotiations for the conclusion of a legal transaction,
  • notified the name, telephone or telefax number, address of the third party or the exact location of the requested real estate to the Principal.
III.2 PRINCIPAL’S OBLIGATIONS
Article 10

(1) In the brokerage agreement, the Principal shall undertake the following in particular:
  1. to conclude with ENEK an appropriate brokerage agreement,
  2. to notify ENEK of all circumstances relevant for the brokerage, and to present accurate information on the real estate; if applicable, to make the location, construction or occupancy permit for the real estate which is the subject matter of the Agreement available to ENEK, and to make the proof of fulfilment of the obligations toward the third party available to ENEK,
  3. to make any documents proving their ownership over the real estate or other real right over the real estate which is the subject matter of the agreement available to ENEK, and to warn ENEK of all registered and unregistered encumbrances in connection with the real estate,
  4. to enable ENEK and third parties to tour the real estate,
  5. to notify ENEK of all the relevant information on the real estate concerned, which includes, in particular, the description and price of the real estate,
  6. to keep any offers and notices by ENEK confidential, to be forwarded to third parties only with the Broker’s written permission,
  7. to pay to ENEK the commission in accordance with the provisions of the brokerage agreement,
  8. to notify ENEK in writing of all changes connected with the business activities for which ENEK has been authorised, particularly of any changes connected with the ownership of the real estate.
(2) The Principal is obliged neither to enter into negotiations for the brokered transaction with the third party found by ENEK nor to conclude a legal transaction; any provision of the agreement laying down otherwise shall be null and void. The Principal shall be liable to ENEK for any damage if they failed to act in good faith, and shall reimburse all costs incurred in the course of the brokerage, which may neither amount to less than 1/3 nor exceed the broker’s commission for the brokered transaction.

(3) The broker who carries out brokerage operations for the Principal who wishes to remain anonymous shall not be obliged to reveal the identity of the Principal to the third party before the conclusion of the legal transaction.

IV. BROKER’S COMMISSION

Article 11
The amount of the broker’s commission shall be set out freely in the appropriate agreement concluded with the Principal.

Article 12
Right to the broker’s commission
(1) ENEK shall become entitled to a commission upon the payment of the agreed down payment under the concluded purchase pre-agreement/agreement, and upon the payment of the purchase price partially or in full under the concluded purchase pre-agreement/agreement, except as otherwise agreed.

(2) ENEK may charge the costs of any additional services related to the brokered transaction the amount of the actual costs if so specifically agreed by ENEK and the Principal.

(3) Upon the expiry or termination of the agreement, ENEK shall be entitled to the commission within 12 months unless otherwise provided for by the agreement and in cases when the Principal concludes a legal transaction resulting from ENEK’s operations with a third party prior to the expiry or termination of the brokerage agreement.

(4) ENEK shall also be entitled to the commission if the Principal’s spouse, partner, descendant or parent concludes a legal transaction which the ENEK brokered with the third party with whom ENEK brought the Principal into contact.

Article 13

General provisions on the broker’s commission


(1) The amount of the commission may vary depending on the type of transaction listed below:
  1. Sale,
  2. Purchase,
  3. Swap,
  4. Lease/rental.

Article 14

(1) In the brokerage agreement, ENEK may undertake to endeavour to find and bring a third party into contact with the Principal for the purpose of concluding an appropriate agreement on transfer of claims, which claims are collateral for the real estate.

(2) All details of the business relationship with the Principal shall be governed by the brokerage agreement.

Article 15
V. CONTRACTUAL PARTNERS

(1) In the scope of its registered business activities, ENEK shall be entitled to conclude an agreement on business and technical cooperation with the Contractual Partners, taking into consideration that ENEK and the Contractual Partners carry out the same business activities they offer on the market of the Republic of Croatia, thus having a joint interest and will for the realisation of the business and technical cooperation, in the manner and under the conditions laid down in the aforementioned agreement.

(2) In the agreement on the business and technical cooperation, the Contractual Partner undertakes to perform, for ENEK’s purposes, administrative and technical tasks related to real estate brokerage in which ENEK represents its clients as principals under the concluded brokerage agreements, namely the tasks of computer processing and technical organisation of data in the digital and paper forms related to the brokerage agreements, real estate from ENEK’s portfolio and principals, correspondence with third parties related to technical and other characteristics of real estate, document scanning, computer processing of data related to cases (case follow-up, reports), and statistical and analytical processing of cases and updating the status of the real estate in the DIMEDIA system.

(3) The Contractual Partner shall perform the tasks referred to in the previous paragraph on their own premises and using their own working materials, with the possibility of ENEK enabling the Contractual Partner the use of its own premises and/or materials (e.g. computers, mobile phones, dock station, call centre etc.), by concluding a separate lease and/or sublease agreement or an annex to the agreement on the business and technical cooperation laying down the terms and conditions of such use as well as the fee for such lease and/or use.

(4) The agreement on the business and technical cooperation shall govern the details of the mutual relationship between ENEK and the Contractual Partners, including the amounts of all fees it is entitled to thereunder.

(5) These General Terms and Conditions shall, in the appropriate segment, be applicable to the tasks performed by the Contractual Partners.

(6) ENEK shall provide timely information to the Principal on which contractual partners it has entered into a business cooperation with.

Article 16

VI. APPRAISALS

(1) ENEK shall carry out appraisal operations upon receiving the Principal’s written order.

(2) While carrying out appraisal operations, ENEK shall act in compliance with the relevant regulations in force.
Article 17

VII. SUPERVISION

(1) ENEK shall carry out supervision operations under the relevant business cooperation agreement concluded with the Principal.

(2) All details of the business relationship with the Principal shall be governed by the agreement referred to in the previous paragraph.

Article 18

(1) These General Terms and Conditions shall apply from the day of their adoption.

(2) The provisions of the relevant agreements concluded with the Principals/Clients shall apply to all cases not governed by these General Terms and Provisions.

Article 19

VIII. FINAL PROVISIONS

(1) The provisions on the Real Estate Brokerage Act or other relevant provisions of the regulations in force shall apply to complement the provisions of this GTC, individual brokerage agreement or exclusive brokerage agreement as regards the relationship between the Broker and the Principal.

(2) Any disputes shall be resolved before the court in Zagreb with subject-matter competence.