General business principles
General terms and conditions of an intermediary (CONSIDO) in the real estate business regulate business relations between the real estate agency (hereinafter referred to as CONSIDO) and a physical or legal person RELATED TO BUYING OR SELLING (hereinafter referred to as the buyer or seller) which concludes a brokerage agreement with an intermediary.
REAL ESTATE AGENCY CONSIDO – INTERMEDIARY IN REAL ESTATE TRANSACTIONS
Intermediation in real estate transactions is every action of a real estate agency (CONSIDO) in real estate transactions which apply to connecting a seller and a third party, negotiates and prepares for legal deals that imply a specific property, especially while buying, selling, renting, exchanging properties and other activities.
Real estates are plots of land, along with everything that is permanently connected to the area or is beneath it according to rules and regulations of the property law and other real estate laws. The seller or the buyer is a physical or legal person which makes a brokerage agreement with a real estate agency (CONSIDO).
REAL ESTATE LISTINGS
When a seller hires CONSIDO, a real estate agent arrives at the property to evaluate it, analyze all necessary documents. Negotiates terms and conditions of the sale and signs a brokerage contract with the seller.
The agent takes pictures and video clips to mark the existing state of the property for presentation to the clients i.e. buyers. The CONSIDO offer is also based on the data that are received in writing and verbally via electronic devices from the seller.
The offer with all the data on the real estates is considered confirmed as soon as the brokerage agreement is signed between the seller and CONSIDO. If the real estate is in co-ownership of multiple persons, it is required a written consent for the brokerage agreement (mandate) of all the part owners or representatives (warrantees) of all the co-owners.
The agency withholds the possibility of errors in the following events:
an error in the description and/or the price of the real estate
the property is already been sold/or rented after it has been advertised
the owner withdraws the sales offer of the offered real estate.
CONSIDO is not responsible for errors stated in the 3.item of this article.
CONSIDO is not responsible for errors and/or extreme negligence of the seller.
When signing a brokerage agreement CONSIDO obliges to connect the seller and a third party which negotiates or is going to negotiate a legal deal, and both according to the deal are obliged to pay the agency fee to CONSIDO, according to the price list, if the deal has been made.
Intermediary will based on the brokerage agreement perform real estate advertising on our web site www.consido.hr or other web sites ( OGLAS.HR , CENTAR NEKRETNINA, NJUŠKALO, PLAVI OGLASNIK … and printed media)
THE ENTITLEMENT ON AGENCY FEE
CONSIDO as your intermediary acquires the right to collect agency fee in full in the moment of closing the pre-contract i.e. the contract that the ordering party committed to conclude the mediating legal work. The agency fee is paid to CONSIDO immediately after the deal that CONSIDO mediated was closed, the deal is closed when the pre-contract or contract is signed. The real estate prices are stated in EUR, the properties are payable in equivalent of HRK at the agreed exchange rate set by the CNB (Croatian National Bank) at the payment date.
LIABILTY OF INTREMEDIARIES
According to article 21 of the Law on Real Estate NN 107/07 an intermediary obliges to conduct the following states:
1. Execute insight into documents that prove ownership and/or any other real estate law and alert the seller on obvious deficiencies and possible risks caused by unordered land registry status of the property, registered law of property or other rights of third party on the property
2. Alert the seller on real estate deficiencies and introduce the seller with the state of the market
3. Introduce the seller with the average market price of a similar real estate property
4. Tend to find and to connect the seller with a third party for the sake of assembling a legal deal
5. Mediate in negotiation and endeavor to making a legal deal
6. Seek an opportunity to make a brokerage agreement between the seller and a third party al of that in good faith
7. Advertise the real estate for the sake of a better presentation on the market, that includes other actions that exceed regular presentation
8. Mediate in real estate handover- compile record of the real estate handover
9. If the subject of the deal is a plot, examine the purpose of the subjected plot in order to see if it is in accordance with zoning regulations which apply to that particular area
10. Enable insight in the real estates to the seller and other third parties
11. Make an preliminary contract for the seller in association with a legal office, make contract of sale, tabular (clausula intabulandi), proposal for registration the ownership of the property with the competent Municipal Court, Land - Registry Department
OBLIGATIONS OF THE SELLER
According to article 23 of the Law on Real Estate NN 107/07 a seller obliges to conduct the following states:
1. Inform the intermediary on all circumstances that are of importance for services of intermediation and present all correct data on the real estate
2. Present to the intermediary all documents that confirm his ownership of property and all other real estate law which is the subject of mediation
3. Alert the intermediary on all registered and unregistered legal charges that exist on the real estate
4. If the property is in co-ownership a legal consent of all co-owners or their warrantees is required for the sale of the real estate
5. Secure the intermediary and to the third party that is interested a direct insight in the real estate
6. Inform the intermediary in a written way on all changes related to the job that authorize the intermediary
7. Pay the agents fee in full for service of mediation required for selling the real estate in the amount of 2-4 % of the selling price of the real estate, immediately after closing the first legal act that the seller made with a third party, with that act the down payment is paid to the seller
8. Compensate operating costs to the intermediary if the cost exceed the customary operating costs
OBLIGATIONS OF THE BUYER
When a buyer turns to CONSIDO for buying a specific real estate, the buyer makes a brokerage contract with the agency for real estate trafficking
For real estate trafficking CONSIDO uses the following services:
-presenting the proof of ownership of the real estate that is traded
-drafting a pre-contract and/or a purchase contract
-organizes verification of the signature at a notary office
-an agency representative attends the payment of the purchase price and the real estate handover during which he makes a record of the handover
Based on the authorization, CONSIDO conducts for the buyer following actions:
a) to the Department of finance - submits tax application to the tax administration
b) regulates everything for transferring the residential utilities from seller to buyer
c) submits the purchase contract to the land registry department of competent municipal court alongside with a proposal for registration and transfer of the ownership rights to the buyer.
For the performed mediation service in case of purchasing a real estate the agency charges the fee from the buyer.
It is considered that the intermediary performed his duty when he provided the seller a connection with a third party (physical and/or legal person) for negotiation of making a legal deal if the intermediary:
- immediately took and sent a third party (physical and/or legal person) to the seller for sightseeing of the real estate
- organized a meeting between the seller and a third party for negotiating
- suggested a name or/and a phone number (landline or mobile), and/or fax number and/or e-mail of a person authorized to negotiate and/or conclude a legal transaction and/or the address of a third party interested in closing a deal
- provided the Seller a contact with a third party in any way that leaves no doubt as to the identification of the person authorized to negotiate and/or close a deal
AGENCY FEE AND OPERATING COSTS
For his work an intermediary charges an agency fee in the highest total amount up to 6% of the determined purchase price of the property.
For his work the intermediary CONSIDO charges a fee from the seller in the amount specified by the brokerage agreement.
Intermediary CONSIDO is entitled to an agency fee in the amount specified by the brokerage agreement immediately after the first legal act which the parties mutually conclude (preliminary or final contract).
The fee includes the usual costs of mediation, except for the expenses that exceed the usual costs of mediation.
CONSIDO the mediator shall be entitled to the costs incurred during the mediation, but only costs that exceed the usual costs of mediation.
The expenses that exceed the usual costs of mediation and the obligation to pay the same the intermediary CONSIDO will inform in writing the seller. Customer has agreed to the charges if, upon receiving of the written notice he did not challenge them.
Agency fee and expenses of the Seller are requested to be paid to the account of the Agent no later than 3 days from the invoice or same day cash on hand depending on the subsequent. On the amount of brokerage fee mediator will calculate VAT at the statutory rate.
If the seller withdraws from the legal transaction during the closure of the mediated deal, the seller is requested to pay the intermediary CONSIDO reasonable costs incurred during the mediation, pay the cost of time spent, advertising and other effective costs.
The seller must pay the intermediary CONSIDO agency fee in case when the person with whom he was connected by the intermediary concludes a legal transaction other than mediated which has same value as the legal deal or accomplishes the same purpose as the brokered legal transaction.
The seller must pay the mediator agency fee if the spouse or common-law spouse, descendant or parent of the Seller conclude an agreement with the person with whom he was connected with the seller by the intermediary.
Mediator has the right to an advance of the brokerage fee if it is agreed. Intermediary shall be entitled to an agency fee even if the agency fee is not expressly contracted by the brokerage contract. The amount of compensation is determined by mediation fee.
LIABILITY FOR DAMAGES
The seller is liable for damages if he has acted fraudulently and failed or gave incorrect information relevant for mediation.
The seller is liable for damages in the event of intentional or extremely reckless behavior on its part, toward the agency and/or a third party with which the Agency has led a relationship.
The intermediary CONSIDO and the seller agree that the seller's obligation is to pay to the Agency for any costs incurred during the mediation, that can’t be greater than agency fee mediated deal.
PRICE LIST OF INTERMEDIARY SERVICES
Services agency fee:
Buying of a real estate - 2% -4%
Selling of real estate - 2% -4%
Replacement of real estates - 2% -4%
Rent/lease of the property to 5 years - 100% of the monthly rent
Rent/lease of the property five years and more - 200% of the monthly rent
Mediation hourly wages with associated costs - 260.00 HRK
Estimation of the real estate market value - by arrangement
Other Services Agency - by arrangement
Prices are subject to VAT at the statutory rate.
The costs of taxation stamps and other charges pays the Seller.
With a brokerage agreement, the seller can commit that for the mediated legal business will not hire any other intermediary (mediation exclusively) which liability must be expressly agreed.
If during the term of the Contract on the exclusive transmission, the Seller made a deal using another mediator, the seller is obligated to pay the actual costs incurred during the mediation.
At the conclusion of the contract of exclusive brokerage intermediary is obliged to alert the seller of the meaning and legal consequences of that stipulation.
CONTRACT DURATION AND TERMINATION OF CONTRACT
Brokerage agreement is concluded for a specified period of time as agreed between the seller and the intermediary and ends with the expiry of deadline for which it was concluded, unless within that period is concluded the work for which it interfere.
The parties may terminate the brokerage agreement before the deadline for which the contract was made out of specially justified reasons and only in writing any of the parties. The notice period is 8 (eight) days of receipt of cancellation.
The seller is obliged to compensate the mediator incurred costs of mediation and the fee may not be less than 2% of the initial real estate price.
If a Brokerage Agreement terminates upon the expiration of the time the Contracting Parties have no other claims to each other.
If the seller makes the legal act with a third person by himself, the seller obliged to immediately inform his intermediary on the termination of the obligation of mediation. The seller will acknowledge the mediation even after the termination of the mediation if the contact with the third party has been made over the life of the Brokerage Agreement.
COOPERATION WITH OTHER AGENCIES
CONSIDO is prepared to collaborate with other brokerage agencies which respect the ethical principles (which excludes using false data about operations to obtain jobs and parties belittling other agencies in any way, in order to obtain jobs, unrealistic evaluation of property in order to obtain intermediate business and exclusion of other agencies from the market, appearance in the media for the purpose of personal promotion to the detriment of other agencies). The inter-agency cooperation is based on the Code of Ethics of business intermediaries - members of the Exchange's property.
GENERAL PROVISIONS AND DISPUTE RESOLUTION
The relationships between the seller, the purchaser and CONSIDO arising from the Brokerage Agreement which are not regulated by these General Terms and Conditions or the Contract, the e Law on the Real Estate Agents and the Law on Obligations is applied. For possible disputes the jurisdiction lies in the court really competent court in Rijeka.