General terms and conditions

GENERAL TERMS AND CONDITIONS OF THE REAL ESTATE AGENCY BIT NEKRETNINE

Article 1
General Terms and Conditions of a real estate agency (hereinafter General Terms and Conditions) regulate the business relationship between a real estate agency (hereinafter the Agency) and a natural or legal person (hereinafter the Principal) that enters into a written brokerage agreement with the agency.
General Terms and Conditions are an integral part of the brokerage agreement concluded between the agency and the principal.

Article 2
Certain terms and words in these General Terms and Conditions have the following meanings:
• Real estate agency (Agency) - is the real estate agency BIT real estate, real estate and services agency, with head office at: Donji Banovec 37, 48000 Koprivnica, OIB:79043445623, represented by owner Katica Miler Matulin.
• Mediation in real estate - actions of a real estate agency regarding the mediation between the customer and the third party, and negotiations and preparations for the conclusion of legal transactions subject of which is a certain property, especially for the purchase, sale, exchange, lease, rental and other.
• Property (real estate) – land plot, along with everything permanently connected to the land on the surface or below it in accordance with general regulations on ownership and other property rights.
• Real estate agent - is a natural person that is a licensed agent in real estate brokerage.
• Principal – is a natural or legal person that enters into a written brokerage agreement with the agency (seller, buyer, lessee, lessor, landlord, tenant or other possible participants in real estate).
• Third party - a person that the real estate agency is trying to connect with the principal to negotiate entering into legal transactions subject of which is a certain real estate property.
• Agency fee - the amount the principal is obliged to pay to the agency for mediation services.

REAL ESTATE OFFER

Article 3
Our offer is based on the information we receive in writing and orally from the principal. There is the possibility of errors in the description and price of the property and the possibility that the property had already been sold, rented or the property owner withdrew from the sale.
Principal must keep our offers and notifications confidential and can transfer them to third parties only with our written permission.
If the recipient of our offer is already informed about the real estate we offered him, he is obliged to notify us about this without delay in writing, by electronic mail (e-mail) to bit1@kc.t-com.hr or by registered mail.

REAL ESTATE PRICES

Article 4
Real estate prices are expressed in euros and paid in the kuna equivalent.

BROKERAGE AGREEMENT

Article 5
Brokerage agreement obliges the agency to connect the principal with a party that would negotiate with him on the conclusion of the agreement, and the principal undertakes to pay the agency a certain commission, if the agreement is concluded.
The brokerage agreement is concluded between the agency and the principal in writing and for a limited time.
All information essential for sale/purchase of real estate in the brokerage agreement must be true, accurate and complete.
The agreement concluded between the agency and the principal must in particular give the information about the agency, the principal, the type and purpose of work the agency is mediating, and the agency fee and possible additional costs incurred when the agency in consultation with the principal performs for him other services in connection with the work that is the subject of mediation.
If the brokerage agreement is not signed the principal is not required to pay the compensation to the agency, only if the agency is otherwise unable to prove the mediation during the conclusion of the legal transaction.
If the parties fail to agree on the deadline of the brokerage agreement, it shall be considered that the brokerage agreement is concluded for a definite period of 12 months, which can be extended several times upon the agreement of both parties.

Article 6
When selling real estate, which is co-owned by several persons, it is required to obtain the written consent of all co-owners or representatives of all the co-owners to sell their property in the form of acceptance of the brokerage agreement.

OBLIGATIONS OF THE AGENCY

Article 7
By signing the brokerage agreement the real estate agency is obliged to perform in particular the following:
1. try to find and connect with the principal a person for the purpose of concluding the brokered transaction,
2. inform the Principal of the average market price of similar properties,
3. inspect the documents proving ownership or other property right over the property and alert the principal about the obvious defects and possible risks related to unsolved situation in the land registry, registered property rights or other rights of third parties to this property,
4. take necessary actions to present (presentation) the property on the market, advertise the property as appropriate, as well as perform all other actions agreed by the brokerage agreement that exceed the normal presentation, and for which agency is entitled to special, pre-show costs,
5. enable a tour of the property,
6. mediate in the negotiations and try to reach an agreement,
7. keep personal information of the principle, and by written order of the principle guard as confidential information the information about the property or in connection with the property or the transaction, which is the subject of mediation,
8. if the subject of the agreement is land, check the intended purpose of the land in accordance with applicable zoning regulations pertaining to the land,
9. inform the principal of any circumstances relevant for the intended transaction, which are known or must be known to it.

Article 8
The agency shall keep confidential all information that it learns by performing mediation, which is related to the principal, property that is being mediated or in connection with the property or transaction being mediated or concluded on the basis of special powers.
If the agency violates its obligation of professional secrecy, the agency is obliged to indemnify the injured parties for losses they have sustained due to the disclosure of business secrets or failure to keep them confidential. It is not considered that the duty of professional secrecy is violated if the agency revels the information to persons with whom the principal is trying to connect the principal, and if that was necessary for the agency to fulfill its obligation under the brokerage contract concluded with the principle.

OBLIGATIONS OF THE PRINCIPLE

Article 9
With the brokerage agreement the principal in particular agrees to do the following:

1. to inform the Agency of all circumstances which are important for the performance of the brokerage and present the correct information about the property and to give evidence of the location, building or occupancy permit if they have one for the property that is the subject of the agreement and make available to the agency evidence of fulfillment of obligations to third parties,
2. give to the Agency evidence of the documents confirming the ownership of the property or other rights to the property that is the subject of the agreement and alert the agency about all the registered and unregistered burdens on the property,
3. provide the agency and third parties interested in purchasing the property with the opportunity to view the property,
4. inform the agency of all relevant information about the property, especially the description and price,
5. after the conclusion of the mediated legal transaction, or the preliminary agreement by which they have committed to conclude the mediated legal transaction, if the agency and the principal agreed that the right to payment of brokerage fees is already acquired at the conclusion of the preliminary agreement, to pay the agency fee, unless otherwise agreed,
6. if it is expressly agreed, to pay the agency the costs incurred during the mediation that exceed the usual costs of mediation,
7. to inform the agency in writing of any changes related to the job for which they have authorized the agency, in particular the changes associated with the ownership of the property.

(2) Principal is not obliged to enter into negotiations for the conclusion of the mediated transaction with the third party that the agency has found, nor enter into a legal transaction, and the provision of the contract claiming otherwise, is null and void. The principle will be liable to the agency for damages if it did not act in good faith and is required to reimburse all the costs incurred during the mediation, which can not be lower than 1/3 nor higher than the agreed brokerage fees for the mediated deal.

AGENCY FEE


Article 10
Agency fees are freely determined by the brokerage agreement (hereinafter: the fee).
The agency charges a fee for its work in the amount specified by the brokerage agreement.
The agency is entitled to reimbursement only after the conclusion of the brokerage agreement, unless the agency and the principal agree for the payment of fees already after the conclusion of the preliminary agreement.

Article 11
After termination of the agreement agency is entitled to compensation in the period not longer than the duration of the agreement, unless otherwise agreed, and in cases where the principal enters into a business transaction with a third party which is mainly the result of the agent's actions prior to the termination of the mediation.

Article 12
If the party itself offers a mediation fee or reward in excess of agreed, the agency can receive such an award, provided that it is not obviously disproportionate to its services, with the results of its work and property status of the parties.

Article 13
The agency can negotiate the right to reimbursement of expenses necessary for the execution of orders and request the advance payment of certain expenses.

Article 14
In the case of mediation, in which the principle itself or through a third party found the person concerned, the intermediary may, in accordance with its conscience charge the actual costs incurred in respect of the services rendered.

Article 15
It is considered that the agency has enabled the principal to contact another person on negotiating a proposed deal, if it has enabled the principal to make contact with another person (natural or legal) with whom he negotiated closing a deal, especially if the agency has:
• directly led to or referred the third party to the principal for viewing of the property that is the subject of mediation;
• organized a meeting between the principle and the other party for the purpose of negotiating an agreement;
• provided the principal with the name, phone number, fax, e-mail of the other person authorized to enter into a legal transaction or gave him the exact location of the property.

PRICES

Article 16
Prices of agency commissions for services relating to the sale, exchange, lease and rent of real estate

BUYING AND SELLING
Commission is charged as a percentage of the total agreed price
Highest total commission 6%
Agency fees are freely determined by the brokerage agreement
Lowest total commission 3%

SELLING
Agency commission when selling real estate
(charged to seller)
2-3%

BUYING
Agency commission when buying real estate
(charged to the customer)
2-3%

EXCHANGE
When exchanging real estate the commission is charged from each side in the exchange and percentage is calculated from the value of the property that the party has acquired by the exchange.
1 –3%

LEASE AND RENT
RENTING AND LEASING OUT - commission from the renter and lessor
Percentage of monthly rent
100 % minimum

RENTING AND LEASING - commission from the lessee
Percentage of monthly rent
100% minimum for lease

TERMINATION OF THE AGREEMENT

Article 17
If the parties fail to agree on the deadline of the brokerage agreement, it shall be considered that the brokerage agreement is concluded for a definite period of 12 months, which can be extended several times upon the agreement of both parties, and ends with the expiry of the period for which it was concluded, unless within that period an brokerage agreement is concluded or by cancellation of any of the parties.

If the principle before the expiration of the deadline unilaterally terminates the agreement, it shall within seven (7) days compensate the agency all brokerage costs incurred until the termination of the contract, which relate to advertising costs, material costs, etc., if they have been agreed and if they arise.
If the contract expires, the parties have no claims against each other. The principal shall reimburse the expenses to the agency, which had been otherwise agreed to be paid separately by the principal.
If within 2 years after the termination of the agreement the principal concludes a business transaction with the person with whom he was connected by the agency, and which was mediated by the agency during the duration of agreement contract, he must pay the mediating commission in full, unless agreed otherwise by the parties.

FINAL PROVISIONS

Article 18
To relations between the agent and agency and other persons concerned, which are not regulated by these General Terms and Conditions or the brokerage agreement, the provisions of the Real Estate Brokerage Act and the Civil Obligations Act of Croatia.

In legal disputes responsible is the Court in Koprivnica, unless otherwise agreed.