GENERAL TERMS AND CONDITIONS OF REAL ESTATE TRANSACTIONS
1.1. Pursuant to the provisions of the Real Estate Brokerage Act (“Official Gazette’’ No 107/07, 144/12, 14/14) the Real Estate Agency M. Chanaan Ltd adopts the stated General Terms and Conditions. The General Terms and Conditions govern the business relationship between the company M. Chanaan Ltd as real estate brokerage agency (hereinafter: the Agent) and natural or legal persons (hereinafter: the Principal) who enters into a written Brokerage Agreement with the Agent. The General Terms and Conditions are an integral part of the Brokerage Agreement concluded between the Agent and the Principal. By concluding the Brokerage Agreement, the Principal confirms that he is acquainted with and agrees with the provisions of the General Terms and Conditions.
NOTIONS AND DEFINITIONS WITHIN THESE GENERAL TERMS AND CONDITIONS
2.1. Certain expressions within these General Terms and Conditions have the following meanings:
The Real Estate Agent is an authorized Agency that meets the conditions for real estate brokerage, i.e. M. Chanaan Ltd – Real Estate Agency, entered in the Register of Real Estate Agents at the Croatian Chamber of Commerce under registration number 98/2014 (hereinafter: the Agent).
Real estate brokerage is the activity of the Real Estate Agent aimed at connecting the Principal with a Third Party, and negotiations and preparations for concluding legal transactions related to a particular real estate i.e. Property, especially when buying, selling, exchanging, renting, leasing, etc.
The Principal is a natural or legal person who enters into a written Brokerage Agreement with a Real Estate Agent (seller, buyer, lessee, lessor and other possible participants in real estate transactions – hereinafter: the Principal).
The Third party is a person whom a Real Estate Agent seeks to connect with the Principal in order to negotiate the conclusion of legal transactions related to a particular Property (hereinafter: the Third Party).
3.1. The Agent’s offer is based on the information received orally or in writing from the Principal. We retain the possibility of an error in the description and price of the property, and the possibility that the property has already been sold, rented or the owner has given up the sale, and the Agent is not responsible for that.
3.2. Our offers and notices must be kept as a trade secret by the Principal and may only be passed on to a Third party with our written permission.
4.1. The Brokerage Agreement obliges the Agent to try to find and bring a Third party in contact with the Principal in order to negotiate and conclude a certain legal transaction on the transfer and establishment of certain property rights, and the Principal undertakes to pay him a certain commission i.e. a Brokerage Fee when that legal transaction is concluded
4.2. The Brokerage Agreement is concluded for a fixed period of time and in writing. The duration of the Brokerage Agreement may be determined individually in each case of brokerage, and may be extended several times by agreement of the parties, which will be determined by a written Annex to the Agreement.
OBLIGATIONS OF THE AGENT
5.1. The Agent undertakes:
- a) to try to find a person and bring it in contact with the Principal for the purpose of concluding a brokerage deal, mediate in negotiations and try to reach an agreement between the Principal and a potential Buyer;
- b) to act with the care of a good expert, i.e. with increased care, according to the rules of the profession and customs, when performing the tasks that are the subject of this Agreement,
- c) to explore the possibilities for concluding the intended legal transaction and warn the Principal about them and inform him about all the circumstances important for the intended transaction that are known to him or must be known to him. It is considered that the Agent knows only those circumstances that are supported by appropriate credible documentation;
- d) to obtain and inspect documents proving ownership of the Property;
- e) if the subject of the sale is land, to check the purpose of the Property in accordance with the regulations on physical planning that apply to that Property;
- f) to enable the inspection of the Property;
- g) to perform the necessary activities for the presentation of the Property on the market, advertise the Property in an appropriate manner, as well as perform all other actions agreed in the Agreement on real estate brokerage that exceed the usual presentation, and for which he is entitled to particular, pre-specified costs.
5.2. It is considered that the Agent has brought the Third Party in contact with the Principal if he brings it to inspect the Property, or if he organizes a meeting between the Principal and the Third Party or if he enables the Principal to meet the Third Party at his business premises.
OBLIGATIONS OF THE PRINCIPAL AS A SELLER / LESSOR
6.1. The Principal undertakes:
- a) to inform the Agent about all circumstances that are important for the performance of the brokerage and provide accurate information about the Property, and if he has it at his disposal, to give the Broker the location, the construction i.e. the use permit for the Property;
- b) to provide the Agent with documents proving the ownership right of the Principal over the Property;
- c) to inform the Agent about all relevant information about the Property, which includes in particular the description and the price of the Property;
- d) to provide the Agent and a Third party with an inspection of the Property;
- e) to inform the Agent in writing of all changes related to the activities for which he has authorized the Agent, and in particular of changes related to the ownership of the Property;
- f) to provide the Agent with proof of fulfillment of the obligations to the Third party;
6.2. The Principal undertakes to inform the Agent within three days about the conclusion of the agreement which was reached through the activity of the Agent, if the conclusion of the agreement occurred in the absence of the Agent.
6.3. The Principal undertakes not to advertise or offer for sale the Property at a price lower than the price at which the Agent advertises and offers the Property for sale, pursuant to this Agreement, and in accordance with the instructions and notices of the Principal.
7.1. The Principal may undertake by an agreement not to hire any other agents for the brokerage deal (exclusive brokerage), which obligation must be explicitly agreed.
7.2. If during the duration of the Exclusive Brokerage Agreement, for which the exclusive Agent was given a brokerage order, the Principal concluded a legal transaction through another agent and beyond the exclusive Agent, he is obliged to pay the exclusive Agent a Brokerage Fee, as agreed in the Agreement.
8.1. The Brokerage Fee belongs to the Agent for mediation in the sale, exchange, lease and rental of the Property. It is charged to the Agent in the amount determined by the Brokerage Agreement.
8.2. The Brokerage Fee is due at the time the Principal and a Third party enter into a preliminary Agreement for the sale, exchange, lease or rental of the Property and, if no such preliminary Agreement is concluded, when the Principal and a Third party enter into an Agreement for the sale, exchange, lease or rental of the Property.
8.6. The Agent is also entitled to a Brokerage Fee determined by the Brokerage Agreement in the event that within 60 (sixty) months after the termination of the Agreement the Principal enters into an Agreement with a Third party on the sale, exchange, lease and/or other legal transaction which achieves the same or similar purpose, which Agreement is a consequence of the Agent’s activity during the duration of the Brokerage Agreement.
8.7. The Agent is also entitled to a Brokerage Fee determined by the Brokerage Agreement in the event that the Principal/the Principal’s family member/a Company owned/co-owned by the Principal and/or a member of his family enters into an Agreement on sale, exchange, lease and/or other legal transaction which achieves the same or similar purpose, with a family member of a Third party and/or with a Company owned/co-owned by a Third party or Third party’s family members.
9.1. The Expenses incurred during brokerage are listed and may be charged additionally according to the valid Price List, which is an integral part of these General Terms and Conditions. Prior to entering into the Brokerage Agreement and including the Property in the Offer records, the Agent may request from the potential Principal the payment of transportation, touring, photography, listing of the Property on the website and documents’ obtaining services, according to the Price List.
9.2. The Cost of Administrative or Court Fees incurred for the purpose of obtaining the necessary ownership and other documents, which are a prerequisite for placing the Property on the market, registration of Property rights in land registers, drafting the Agreement and Documents in the form of notarial documents, bears the Principal, regardless of whether it has been agreed or not, on which the Agent is obliged to warn the potential Principal when signing the Brokerage Agreement.
TERMINATION OF THE AGREEMENT
10.1. The Brokerage Agreement shall terminate upon the expiration of the term for which it was concluded (unless it has been extended by agreement of the parties) or upon cancellation by either Contracting Party.
10.2. The Agreement can be canceled only by written notice sent to the other party by registered mail with return receipt.
10.3. In the event that the Agreement is canceled by the Principal, the Principal is obliged to pay the Agent a compensation for the costs incurred by the Agent in performing brokerage activities based on the Agreement.
11.1. These General Terms and Conditions will be available in a visible and accessible place in the Agent’s official premises.