The general terms and conditions of business operations of the Intermediary agent in real estate (in further text: General terms) regulate the business relationship between the agency rendering real estate intermediary services (in further text Intermediary agent) and the physical or legal persons (in further text Principal) who concludes a written contract with the Intermediary agent for the purchase, sale, exchange, rent or lease of property.
The General terms are an integral part of the Contract for intermediary services concluded between the Intermediary agent and the Principal.
Definitions of certain terms and expressions concerning the General terms are as follows:
-Intermediary agent – real estate agency MARVEL REAL ESTATE, with its seat in Omišalj, Brgučena 2, PIN:52813011115.
Intermediary services in real estate are services rendered by the Intermediary agent of real estate with the aim of establishing contact between the Principal and a third party, including negotiations and preparation work necessary to conclude legal transactions for the purchase, sale, exchange, rent, lease and similar of a certain property.
Real estate is property or a land plot together with all that is permanently on that land on the surface or underneath it, pursuant to the provisions of general regulations of ownership and other property rights.
Principal is a physical or legal person who concludes a written contract for intermediary services with the Intermediary agent for services in real estate (seller, buyer, lessee, lessor, renter and others involved in real estate transactions).
Third party is a person whom the Intermediary agent endeavors to connect with the Principal for negotiations and conclusion of legal transactions regarding certain property.
Intermediary commission is a sum the Principal is obliged to pay to the Intermediary agent for intermediary services.
The General terms are at your disposal in our main office and agency offices and on the Internet sites of our company www.marvel-nekretnine.hr, and www.remax-marvel.com.
The General terms apply to the Principal and are an integral part of the other separate contracts for intermediary services.
If a separate Contract differs from the General terms, the provisions of the separate contract prevail.
REAL ESTATE OFFERS
Offers of the Intermediary agent are based on data that we receive in written form or by direct contact with the Principal and we take no responsibility for their inaccuracy.
We reserve the right for the possibility of mistakes or errors to occur in the description of property prices or the property already being sold, rented, leased or that the owner changed his mind about the sale, rent or lease.
REAL ESTATE PRICES
The prices of real estate may be indicated in Euros, while payments are made in kuna per the middle exchange rate of the Croatian National Bank on the day the payment is made.
CONTRACT FOR INTERMEDIARY SERVICES
By signing the Contract for Intermediary services, the Intermediary agent binds himself to connect the Principal with a person with whom he could negotiate and conclude a contract, while the Principal binds himself to pay a certain commission to the Intermediary agent if a contract is concluded.
The Contract for Intermediary services (in further text: Intermediary contract) is concluded in written form between the Intermediary agent and the Principal.
If, for technical reasons, the Intermediary agent does not conclude the terms of the contract in written form, the intermediary service details my be conveyed to the Intermediary agent orally and in such a case or similar cases all provisions of the General terms, Price list, the Law on rendering intermediary service in real estate transactions and the Law on Obligations shall apply, in addition to the commitment of concluding a Contract for intermediary services in written form as soon as possible.
The Intermediary agent may, based on the oral agreement with the Principal advertise the property on his internet site and list it in the Register of intermediary services and when a potential contractual party shows interest for the subject property, he will inform the Principal. If the Principal refuses to sign the Intermediary contract, the Intermediary agent is not obliged to bring the potential contractual party in contact with the Principal. In that case, the Intermediary agent may contract the payment of the Intermediary commission from the other contractual party in full.
The Intermediary agent is not, under any circumstance, responsible if during or after concluding the written Intermediary contract with the Principal, the potential contractual party withdraws from concluding the contract.
When selling property in co-ownership, written consent is needed from all the co-owners or from the representative of all the co-owners who is authorized to sell the property and accept the Intermediary contract.
By classification, services are divided into basic and additional services.
Basic services are: intermediary services in the sale of property, intermediary services in the purchase of property, intermediary services in the exchange of property, intermediary services in renting property, intermediary services in for renting out property, intermediary services for leasing property and similar.
Basic services rendered by the Intermediary agent include the following: strive to find and connect a person with the Principal for concluding an Intermediary contract; to familiarize the Principal with the average market price of similar property; procure and review all the documents serving as proof of ownership or other property rights for the subject property, make all necessary preparations for introducing the property to the market, advertise the property on the Internet in accordance to one’s own discretion and estimate, enable viewing of the property, if property sale is involved, check if the property’s classification is in accordance with the urban plan for that property and inform the Principal of all the circumstances involved for this undertaking that he has knowledge of.
Additional services encompass: advertising the property on designated Internet sites, preparation of paperwork for attaining the legal and other property documentation, market analysis of the property value, cost estimate of other necessary contracts, expert estimates, notary public and attorney fees, establishing joint tenant ownership, property division and other services by an appointed court expert for buildings, review and preparation of attaining a building permit or other documentation, preparation of paperwork and payment of taxes for attaining documents from the Land registry office, Cadastral office, Court, Urban Planning and similar certification and other documents and other legal matters where intermediary services are needed, services involving the review, transfer and payment of property operating costs, expenses of digital photographing of the property, property consultation services when not on the property, property consultation services on the property, public polling and market analysis of the property, other marketing advertising services, property presentation, preparation of advertising material and similar preparations as agreed, specified and requested.
A special type of contract is not foreseen for additional services as it is concluded depending on the specific requests of the Principal and agreed to by the Intermediary agent and these services are specified in the offer made by the Principal which, if accepted by the Principal, become an integral part of the Intermediary contract. Some of the additional services may be concluded in the Intermediary contract to expand and intensify the level of services
OBLIGATIONS OF THE INTERMEDIARY AGENT
By signing the Intermediary contract for real estate, the Intermediary agent is foremost obliged to perform the following:
1. seek out with care a good business opportunity to conclude an intermediary transaction and bring together the Principal with a person to conclude an intermediary transaction,
2. inform the Principal of the average market price of similar property and of the circumstances that are of importance for concluding such a transaction,
3. secure and review all the of the subject property documents proving ownership or other property rights,
4. prepare all that is necessary to introduce the property to the market, advertise the property in a proper manner and complete the additional work agreed upon beyond the Intermediary contract stipulations for which he has a right to special, in advance stated expenses,
5. enable viewing of the property,
6. secure intermediary services during negotiations and, if an explicit commitment was made, strive to conclude the contract,
7. keep the Principal’s personal information confidential and, by written request of the Principal, regard the information on the property he is an intermediary for or information regarding that property or intermediary actions undertaken, as a business secret,
8. if the subject of concluding a contract is property, check whether the subject property is in accordance with the regulations of urban planning,
9. inform the Principal of all the circumstances important for the intended service that are known to him or he should know of
RIGHTS OF THE INTERMEDIARY AGENT
1. The Intermediary agent may carry out his commitments through the intermediary services of another person who is a business partner; employee or an employee of another person in any way connected the Intermediary agent.
2. The Intermediary agent is authorized to contact and cooperate with other Intermediary agents for the sale of property with the purpose of fulfilling the Principal’s needs.
OBLIGATIONS OF THE PRINCIPAL
By signing the Contract for intermediary services in real estate, the Principal explicitly binds himself to:
1. present and submit identification information: personal data (name, last name, home address, I.D. number and date of birth), valid personal identification card or passport,
2. convey to the Intermediary agent all information regarding the offered property, especially information on the ownership and status of the property, submit a copy of the building permit and the certificate of occupancy for the property,
3. notify the Intermediary agent of all the recorded and unrecorded liens and property rights in favor of third parties on the property and changes on these liens, submit all other identified or unidentified documents showing outstanding claims of a creditor (recorded or unrecorded in the Land registry and other registers), give all known facts and point out circumstances not evident in the submitted documents but known or should be familiar to the Principal and submit proof of fulfilling all obligations towards the third party,
4. inform the Intermediary agent of all circumstances that are important for rendering intermediary services and submit accurate information on the property,
5. check and establish that all information submitted concerning the property is true, complete and accurate,
6. submit to the Intermediary agent all documents that prove his ownership of the property, namely property rights pertaining to the subject property of the contract,
7. inform the Intermediary agent of all important data on the sought property, especially a description of the property and price
8. inform the Intermediary agent in written form of all changes regarding the business undertaking which he has authorized the Intermediary agent for and especially in regards to a change of price, circumstances, status, ownership, recorded and unrecorded liens on the property and other data influencing the intermediary relationship, at once, at the latest 3 days within learning of the changes. If not, the Principal is obliged to cover cost and damages which might occur by not doing so,
9. on request, immediately secure to the Intermediary agent and the third party interested in concluding the intermediary business undertaking, viewing of the property and secure unobstructed access to the property during the viewing,
10. pay the Intermediary commission to the Intermediary agent and compensate the Intermediary agent the expenses for all additional services agreed upon by the Intermediary contract,
11. safe keep all the data and information arising from the mutual business relationship as a business secret, fully within the legal framework, on the contrary, he is responsible for the damages arising for breaching the regulations on protecting the confidentiality of data.
12. in case of any kind of request made by the third party towards the Intermediary agent concerning compensation for damages, based on the information submitted by the Principal or advertisements placed by the Intermediary agent, the Principal is legally responsible and obliged to undertake actions to defend and protect the Intermediary agent from such requests or he obliges himself to compensate the Intermediary agent for the damages which could possibly occur based on the request of the third party,
13. submit to the Intermediary agent information and material needed to advertise on the Internet sites in specified format and when the property is advertised on the Internet sites, check at once and send to the Intermediary agent any comments in written form, at the latest within 3 days from the day it is advertised. If he does not respond, the advertisement will be presumed accepted entirely,
14. respond to all the calls and questions posed by the Intermediary agent to render services and cooperate and not obstruct these services,
15. enable the Intermediary agent to place a for sale sign on the Principal’s property.
THE PRINCIPAL’S RIGHTS
The Principal has the right to refuse negotiations for the conclusion of Intermediary services and conclude the business transaction with a third party found by the Intermediary agent, but the Principal will be liable for the damages if he did not act in good faith or if he acted deceivingly and if he withheld or gave incorrect information important for the intermediary service with the aim of ending the business transaction. In that case, he is obliged to compensate the expenses accrued to the Intermediary agent for his services which cannot amount to less than one half or more than the contracted intermediary fee.
Per paragraph 1 of this Article, the expenses are due for payment within 14 days from the day the invoice is sent by the Intermediary agent to the Principal’s address.
INTERMEDIARY AGENCY COMMISSION
The Intermediary agent charges a commission for his work in the amount defined by the Intermediary contract, a fixed percentage of the price or as differently foreseen by each Intermediary contract.
The Intermediary commission covers the basic intermediary services, as enumerated in Article 10 of the General terms and conditions.
The Intermediary commission for Intermediary services for the exchange of property is charged to both contractual parties of the exchange in the amount or percentage of the property value given by each of the parties in the exchange.
The Intermediary agent has a right to an Intermediary commission even in the case when it is not defined by an individual Intermediary contract, per the effective Pricelist and, if not available, per the value of rendered services.
The Intermediary agent attains the right to the Intermediary commission in full when the price or part of the price is paid or when a pre-contract or contract for intermediary services is concluded.
The Principal is obliged to pay a commission even in the case, when in the duration of the Intermediary contract or one half of the period the Intermediary contract is concluded for, after it ends, concluded, with the person that the Intermediary agent linked him with, a business transaction different from the one that was negotiated, but is of the same value or has the same aim as the intermediary business transaction.
The Principal is obliged to pay an Intermediary commission in full as well as eventual additional expenses if, for the duration of the exclusive contract for intermediary services, he had ownership rights on the property that the Intermediary agent did not know of.
The principal is obliged to pay an Intermediary commission in full, if within 12 months or other period foreseen in an individual contract, after the Intermediary contract ends, concluded a business transaction or transaction which is the same in value or purpose as the one concluded through intermediary services and which is chiefly the result of the Intermediary agent’s activities and especially if the Intermediary agent enabled the Principal to link with the third party.
The principal is obliged to pay an Intermediary commission in full, even if within 12 months or other period foreseen in an individual contract, after the Intermediary contract ends, concludes a business transaction or transaction which is to be the same in value or purpose as the one concluded through intermediary services and which is chiefly the result of the Intermediary agent’s activities and especially if the Intermediary agent enabled the Principal to link with the third party.
The Principal is obliged to pay an Intermediary commission even then, when for the property that he learned of by the Intermediary agent’s services, ownership rights are attained by persons who were with him when viewing the property.
The Principal is obliged to pay an Intermediary commission in full in the case if his spouse, common law partner, descendant, parent, adoptee of the Principal or an association whose member he is, employee or partner conclude an Intermediary business transaction with a third party which the Intermediary agent connected with the Principal.
In case the Intermediary agent renders services to both contractual parties, a commission fee will be charged to each Principal individually, not based on the contracted Intermediary commission charged to the other contractual party.
The lowest Intermediary commission to be paid by the Principal for intermediary services for the sale, purchase or exchange of property amounts to 2% of the property value and if that amount is less than 1,000.00 Euros, then the 1,000,00 Euros are paid in kuna per the middle exchange rate of the Croatian National Bank on the day of payment.
The lowest Intermediary commission to be paid by the Principal for services of exclusive intermediary services for the sale, purchase or exchange of property amounts to 4% of the property value and if that amount is less than 2,000.00 Euros, then the 2,000.00 Euros are paid in kuna per the middle exchange rate of the Croatian National Bank on the day of payment
As an exception, the Intermediary agent may charge the full commission to one contractual party when specified in the individual Intermediary contract that the contractual party is free from the obligation to pay the commission.
Since the Intermediary agency operates under the Added Value Tax system, the VAT is calculated on the commission according to the current effective rate.
If the principal offers to the Intermediary agency payment of a higher commission than contracted, the Intermediary agent may accept such a fee.
It is deemed that the Intermediary agent enabled the Principal contact with a third party for negotiations on concluding an Intermediary business transaction if he enabled the Principal to come in contact with that person (physical or legal entity), especially if:
-he gave directions or directly took the Principal or third person to view the property which is the subject of intermediary services,
-he organized a meeting between the Principal and third party for the purpose of negotiating and concluding a business transaction,
-he gave the Principal the name, telephone number, fax or e-mail of the third party interested in concluding a business transaction or gave him the correct location of the sought property or similar.
EXPENSES FOR ADDITONAL SERVICES
The Intermediary agent has a right to compensation of expenses for additional services in the case they are contracted.
When the compensation for additional expenses are acknowledged to the Intermediary agent, he has a right to that compensation even though an Intermediary contract for a business transaction was not concluded.
Payment of expenses is due within 14 days of dispatch of the offer.
The Intermediary agent who, against the contract or the interests of his Principal, works for the other contractual party, loses his right to a commission.
TERMINATION OF THE INTERMEDIARY CONTRACT
The Principal waives the right to terminate the Intermediary contract in the period which equals half of the contracted period of the concluded Intermediary contract, on the contrary he is obliged to compensate the Intermediary agent the intermediary service expenses in the amount of half the contracted commission, the payment being due on the day of termination.
The termination of the Intermediary contract, after half of the period of time of the Intermediary contract contracted passes cannot expire, especially if a purpose exist to forfeit or deliberately impair the right of the Intermediary agent to the Intermediary commission, otherwise the Principal is obliged to compensate to the Intermediary agent the commission and all expenses for intermediary services, due on the day the Intermediary contract is terminated.
INTERMEDIARY SERVICE EXPENSES
The Principal and the Intermediary agent waive the right to establish the amount of intermediary service expenses in the case when they are defined by these General terms and conditions.
LIABILITY FOR DAMAGES AND CONTRACT PENALTY
If the Intermediary agent breaches his obligations of business secret confidentiality, he is obliged to compensate the injured parties the actual damages which they have suffered due to disclosure of the secrets and not keeping business secrets confidential.
When foreseen by the Intermediary contract, the responsibility of keeping business secrets confidential does not apply when the Intermediary agent discloses information he is obliged to keep as a confidential business secret in transferring the Intermediary contract to another Intermediary agent.
The responsibility of keeping business secrets confidential does not apply when the Intermediary agent discloses information he is obliged to keep confidential as a business secret to other intermediary agents with whom he cooperates or persons he tries to connect with the Principal.
It is also considered a breach of contractual obligations and a reason to terminate the Intermediary contract when the Principal concludes a business transaction with the person that the Intermediary agent linked him to and with the purpose of depriving the Intermediary agent his Intermediary commission, where intermediary services are contracted or business transactions different from the intermediary services are contracted, but are of the same value as the intermediary business transaction, namely when they serve the same purpose as the intermediary business transaction during the period of duration of the Intermediary contract or for one half of the period for which the Intermediary contract is concluded or after it ends.
In the case described in paragraph one of this Article, the Principal is obliged, in addition to the expenses in the amount of the commission, pay a contract penalty in the amount of the contracted Intermediary commission which is due on the day of concluding the business transaction of the same value or which attains the same purpose as by the intermediary business transaction.
If the Principal, contrary to the principle of conscientiousness and fairness, enters negotiations with a third party without an honest intent to conclude a contract with that party, it is also considered a breach of contractual obligations, this being a reason to terminate the Intermediary contract.
In the case described in paragraph 1 of this Article, the Principal is obliged to compensate the Intermediary agent actual damages and pay the contract penalty in the amount of the contracted commission which is due on the day the contract is terminated.
The Principal is liable for damages if he acted deceitfully or if he withheld and/or gave incorrect information important for intermediary services and he was aware of this or should have been.
The Principal is also liable for damages if his actions were exceptionally negligent towards the Intermediary agent and/or the third party he contacted through the services of the Intermediary agent.
Instances described in paragraph 1 and 2 of this Article are a reason to terminate the contract and for this reason the Principal is obliged to pay to the Intermediary agent the contract penalty in the amount of the intermediary commission due on the day the Intermediary contract is terminated.
It will also be deemed as a reason for terminating the Intermediary contract in the case the Intermediary agent does not conclude an agreement with the third party concerning the intermediary business transaction, agreed upon with the Principal and the Principal withdraws from concluding the business transactions at the conclusion of negotiations or during negotiations without a justified reason or changes relevant terms and conditions of the contract of intermediary services and thereby prevents the conclusion of the business transaction.
In the case described in paragraph 1 of this Article, the Principal is obliged to pay the contract penalty in the amount of half the Intermediary commission which is due on the day the Intermediary contract is terminated.
Removing the for sale sign from the property, the Principal is considered to have breached the contract and is in that case obliged to pay the contract penalty in the amount of 8,000.00 kuna and the VAT. The contract penalty is due within eight days from the written notification to the Principal warning him that he breached contractual obligations.
If not foreseen differently by the Intermediary contract, the Contract is concluded for a duration of 12 months and expires if cancelled four weeks before the expiration deadline.
The Intermediary contract expires with the conclusion of the intermediary services or if any of the contractual parties terminate or cancel the Intermediary contract.
SALES OR PURCHASE – commission is charged for a percentage of the total sales or purchase price attained:
The highest total commission – the highest provisions is determined by the existing regulation of the Republic of Croatia.
The lowest total commission – 4%, but not less than 2,000.00 Euros per the middle exchange rate of the Croatian National Bank on the day of payment.
SALES (charged to the seller) - the lowest commission for intermediary services for the property sale – 2%, but not less than 1,000.00 Euros per the middle exchange rate of the Croatian National Bank on the day of payment.
PURCHASE (charged to the buyer) - the lowest commission for intermediary services for the property purchase – 2%, but not less than 1,000.00 Euros per the middle exchange rate of the Croatian National Bank on the day of payment.
EXCHANGE (charged to each party in the exchange for a percentage of the property value attained by the party in the exchange) - the lowest commission for intermediary services for the property exchange – 2%, but not less than 1,000.00 Euros per the middle exchange rate of the Croatian National Bank on the day of payment.
RENTAL OR LEASE – commission paid by the renter or lessor (percentage of the monthly rent or lease fee – one time fee):
100% - minimum for the rent or lease up to 12 months
150% - minimum for the rent or lease for a period of 12 to 59 months
200% - minimum for the rent or lease for a period of 5 years (60 months) or more
The highest total commission for the rent, lease, renting or leasing to others – the highest commission is regulated by the regulations of the Republic of Croatia.
***** Added Value Tax (VAT) is calculated on all the stated prices since the agency Mar.Vel.Corp, Ltd operates under the VAT system.
In the case that the provisions of the Intermediary contract do not coincide with the General terms and conditions, the provision of the Intermediary contract shall prevail.
The Principal, by signing the individual Intermediary contract, gives consent to the registration of his personal information into the RE/MAX center database in Canada and the USA and that the Intermediary agent continuously inform him by telephone, e-mail or regular mail of the changes and new information concerning the property/properties he is seeking.
Any disputes arising from the Contract, the parties will endeavor to resolve amicably and if not, than the jurisdiction of the Municipal Court of Rijeka shall be engaged.
The General terms and conditions are effective on the day they are adopted.
MARVEL REAL ESTATE, an agency for intermediary services in real estate and other business service activities, etc., (MBO:97624934,. PIN:52813011115) from Omišalj, based on the Decision issued by the Department of Commerce is a licensed agency for the intermediary services of real estate transactions and the Decision is registered under Classification: UP/I-330-01/15-01/187 REF. NO.: 526-05-01-01-01/2-15-3 and is recorded into the Register of Intermediary agencies for real estate transactions kept by the Croatian Chamber of Commerce.
Effective starting October 1, 2015
MARVEL REAL ESTATE