Terms of business

GENERAL PROVISIONS

Article 1.

The general business conditions regulate the business relationship between the trading company Eurovilla d.o.o. Zagreb, Berislavićeva 4, OIB: 77148321177, as an intermediary in real estate transactions and a natural or legal person (hereinafter referred to as the Principal) who enters into an Intermediation Agreement with the intermediary.

Article 2.

Conceptual meaning of the expression:

• The real estate broker is Eurovilla d.o.o., Zagreb, Berislavićeva 4, OIB: 77148321177, a trading company that meets the requirements for real estate brokerage in accordance with the Real Estate Brokerage Act (hereinafter: Broker).
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• A real estate brokerage agent is a natural person who is registered in the Directory of Real Estate Brokerage Agents and as such is employed by the Broker (hereinafter: Agent).
• Mediation in real estate transactions are actions of the Mediator that relate to the connection between the Principal and a third party, as well as negotiations and preparations for the conclusion of legal transactions, the subject of which is a certain real estate, especially when buying, selling, exchanging, renting, leasing, etc.
• The principal is a natural or legal person who enters into a written mediation agreement with the Mediator (seller, buyer, lessee, lessor, lessor, lessee and other possible participants in real estate transactions).
• A third party is a person whom the Intermediary tries to connect with the Principal in order to negotiate the conclusion of legal transactions the subject of which is a certain real estate (hereinafter: Third Party).
• Intermediary fee is the amount that the Principal is obliged to pay to the Intermediary for mediation services (hereinafter: Fee)

PROPERTY OFFER

Article 3

• The offer of the Intermediary is based on the information received in writing and/or verbally from the owners of the properties offered for sale, lease or rent, as well as on the information contained in the written and/or oral orders of the Principal.
• Offers and notices of the Intermediary must be kept by the recipient (Principal) as a business secret and may only be transferred to third parties with the written approval of the Intermediary. The agency reserves the possibility of an error in the description and price of the property, the possibility that the advertised property has already been sold (or rented) or the owner has given up on the sale (or rental).

AGREEMENT ON REAL ESTATE BROKERAGE

Article 4

In the agreement on mediation in real estate transactions (hereinafter: Agreement), the mediator undertakes to try to find and connect with the Principal a person for the purpose of negotiating and concluding a certain legal transaction on the transfer or establishment of a certain right on real estate and/or in connection with real estate, and the Principal undertakes to pay him a certain brokerage fee if this legal transaction is concluded.

The contract is concluded in writing and for a certain period of time.

If the contracting parties do not agree on the term for which they conclude the Contract in the Contract itself, the Contract is concluded for a specific period of 12 months and can be extended several times by agreement of the parties.

Obligations of the Intermediary

The mediator is obliged to do the following when mediating for the conclusion of a purchase agreement, rental agreement or real estate lease agreement:

1. try to find and bring a person in contact with the Principal in order to conclude a mediated deal,
2. inform the Principal with the average market price of a similar property,
3. obtain and review the documents that prove ownership or other real rights to the property in question,
4. perform the necessary actions in order to present the real estate on the market, advertise the real estate in an appropriate manner and perform all other actions agreed in the real estate brokerage contract that go beyond the usual presentation, for which he is entitled to special, pre-specified costs,
5. provide real estate inspection,
6. mediate in negotiations and try to conclude a contract,
7. keep the Principal's personal data and, upon the Principal's written order, keep as a business secret information about the real estate for which he is mediating or in connection with that real estate or the business for which he is mediating,
8. if the subject of the contract is land, check the purpose of the land in question in accordance with the spatial planning regulations that apply to that land,
9. notify the Principal about all circumstances important for the intended work that are known to him or must be known to him,
10. acquaint the Principal with the provisions of the Law on Prevention of Money Laundering and Financing of Terrorism.

Obligations of the Principal

By signing the Mediation Agreement, the Principal undertakes to perform the following:

1. notify the Mediator of all the circumstances that are important for the performance of mediation services, present accurate information about the real estate, and, if in possession, provide the Mediator with a location, construction, or use permit for the property in question, and provide evidence of fulfillment of obligations towards the Third Party for inspection ,
2. give the Broker all the documents proving his ownership of the real estate, or other real rights to the real estate that is the subject of the contract, and warn the Broker of all registered or unregistered encumbrances that exist on the real estate,
3. provide viewing of the property to the Mediator and the Third Party interested in concluding the mediated deal,
4. after the conclusion of the mediated business, i.e. the pre-agreement by which he undertook to conclude the mediated business, pay the Mediator the mediation fee, unless otherwise agreed,
5. if it is expressly agreed to compensate the Mediator for costs incurred during the mediation, which exceed the usual costs of mediation,
6. notify the Intermediary in writing about all changes related to the work for which he has authorized the Intermediary, and especially about changes related to ownership of real estate,

The Principal is not obliged to enter into negotiations for the conclusion of a mediated deal with a Third Party found by the Mediator, nor to conclude a legal deal, and the provision of the Contract which stipulates otherwise is null and void. The principal will be liable for damages if he did not act in good faith and is obliged to compensate all costs incurred during the mediation, which cannot be less than 1/3 or more than the agreed fee.

The principal will be liable for damages if he has acted fraudulently, if he has withheld or given incorrect information essential for the mediation business in order to complete the mediation business.

Intermediary fee

The amount of the Fee is determined by the Agreement on mediation in real estate transactions, and the same is specified in the Agency's price list.

The agreed mediation fee includes the execution of all actions of the Mediator.

In the case of performing activities of the Intermediary that are not included under his obligations based on the request of the Principal, he is obliged to compensate the Intermediary for the actual costs of performing these activities in addition to the compensation for the intermediary hourly spent.

The intermediary acquires the right to the mediation fee in full, immediately after concluding the mediated deal (namely: pre-contract or contract). Value added tax is charged on the amount of the fee in question.

If the party itself offers the Mediator a fee higher than the agreed fee, the Mediator may receive such a reward, but under the condition that it is not clearly disproportionate to his services, the outcome of his work and the financial condition of the party.

The intermediary can agree on the right to reimbursement of expenses necessary for the execution of the order and request that funds be advanced in advance for certain expenses.

It is considered that the Intermediary has connected the Principal with a Third Party for the conclusion of the mediated transaction, if the Principal is enabled to enter into a relationship with that person (physical or legal), and especially if the Intermediary is:

• directly took or instructed the Principal or a Third Party to view the property in question;
• organized a meeting between the Principal and the other contracting party for the purpose of negotiating to conclude a legal deal;
• Communicated to the principal the name, phone number, fax number, e-mail address of another person authorized to conclude a legal transaction or communicated the exact location of the requested real estate.

After the termination of the Agreement, the Intermediary has the right to compensation within a period of up to 12 months and in cases where the Principal enters into a legal transaction with a Third Party that is a consequence of the intermediary's actions before the termination of the Intermediation Agreement.

The Intermediary is entitled to Compensation if he is a spouse, i.e. common-law partner, descendant or parent of the Principal; i.e. a trading company, institution or other legal entity that is the Principal, his spouse or common-law partner, descendant or founding parent or legal representative, i.e. with which he has concluded an employment contract or a work contract, concludes a mediated legal transaction with the person with whom the Intermediary Brought the principal into contact.

Resignation by the Principal or a Third Party after the conclusion of a pre-contract or contract regarding the property in question does not affect the obligation to pay the Mediator compensation for mediation in the amount and in the manner determined by this article and the concluded mediation agreement.

Termination of mediation agreement

A contract concluded for a fixed period of time ends with the expiration of the term for which it was concluded if the contract for which it was mediated was not concluded within that period or by the termination of any of the contracting parties. The Intermediary and the Principal agree that at the end of the agreed term, the Agreement will be extended again for the same period of time, if none of the contracting parties cancels the Agreement in writing beforehand. If the notice period is not expressly determined by the Agreement, the notice period is 8 days from the receipt of the notice.

The parties may withdraw from the contract on real estate mediation before the end of the agreed term only for a particularly justified reason. In that case, the client is obliged to reimburse the agency for the costs incurred.

If, within 12 months after the termination of the concluded Agreement, the Principal concludes a legal transaction that is a consequence of the Intermediary's actions before the termination of the Intermediation Agreement, he is obliged to pay the Intermediary the Fee in full.

The provisions on the termination of the Mediation Agreement also apply to the termination of the Exclusive Mediation Agreement.

Exclusive mediation

Article 5

With the agreement on exclusive mediation, the Principal undertakes not to engage any other mediator for the mediated work, and this obligation must be expressly agreed upon.

If, during the duration of the Agreement on exclusive mediation, the Principal concluded a legal transaction through another mediator, for which the exclusive Mediator was given an order to mediate, he is obliged to pay the exclusive Mediator the agreed Fee as well as possible additional real costs incurred during the mediation for the specified mediated job.

When concluding the Agreement on exclusive mediation, the Mediator is obliged to specifically warn the Principal about the meaning and legal consequences of the contractual clause from the previous paragraph.

A contract on exclusive mediation concluded for a certain period ends at the end of the term for which it was concluded, i.e. if the contract for which it was mediated was not concluded within that period, or by the termination of any of the contractual parties.

FINAL PROVISIONS

Article 6

For everything that is not expressly determined by these General Terms and Conditions, the Law on Mediation in Real Estate Transactions, the Law on Obligatory Relationships will be applied. Possible disputes will be resolved by the competent court in Zagreb.

In Zagreb, on May 21, 2018.