Terms and Conditions GENERAL TERMS AND CONDITIONS OF REAL ESTATE AGENCY
GENERAL PROVISIONSArticle 1.
1.1. General Terms and Conditions of real estate agents (hereinafter: General Terms) regulate the business relationship between MEN-ARS Ltd. real estate agency (hereinafter referred to as Mediator) and private or legal persons (hereinafter referred to as the Principal) who with the Mediator signs a a written Mediation contract. By signing the Mediation contract, the Principal is acquainted with and compliant with the rules of the General Terms.
General Terms are regulated and comply with the applicable law of the Real Estate Brokerage Act, the Obligations Act, the General Administrative Procedure Act, Consumer Protection Act as well as with all other applicable regulations of the Republic of Croatia.Article 2.
2.1. Certain terms of these General Terms and Conditions shall have the following meanings:
OFFER OF REAL ESTATE PROPERTIES
- Mediator: MEN-ARS Ltd, based in Varaždin, 31 Zagrebačka street, MB (company number) 2025019, OIB (VAT number) 14297783402, based on the decision of the Ministry of Economy, Labor and Entrepreneurship of the Republic of Croatia, Class: UP / I-330-01/09-01/702, Reg.No.:526-05-01-01/2-09-2 is licensed and authorized agency that meets all the requirements for mediation in real estate and is registered in the Register of real estate in Croatia under Croatian Chamber of Commerce , registration entry No. 197-2009
- Mediation in real estate includes the actions which the Mediator in real estate undertakes with the aim of connecting the Principal and Third parties through negotiations, preparation for the conclusion of the legal affairs and the fulfillment of the mediation the subject of which is a certain property and its sale, buying, exchange, lease, rent etc.
- Properties are land, together with all that is permanently connected to the land surface or beneath it in accordance with the provisions of the Law on Ownership and Other Proprietary Rights.
- Principal is a physical person and /or entity that concludes a Mediation agreement with the Mediator (seller, buyer, lessee, lessor, landlord, tenant or other possible participants in real estate transactions).
- Third parties are private or legal persons who the Mediator tries to connect with the Principal for the negotiations and the conclusion of the mediated legal affair, the subject of which is a certain property (hereinafter: Third party)
- Mediation fee (hereinafter: Mediation fee) is the amount which the Principal is obliged to pay to the Mediator for mediation services.
- Members of the family of the Principal/Third party – married partner or a cohabitation partner of the Principal/Third party, even if the marital contract was concluded or the cohabitation started after the Mediation agreement was concluded, children or stepchildren of the Principal/Third party, parents, stepmother and stepfather of the Principal/Third party and all the other relatives that lived in the same household with the Principal/Third party at the moment of concluding the mediating contract.
- Close physical and legal persons of the Principal/Third party – members of administrative or supervisory authorities of the Principal/Third person's party, personally liable members of the Principal/Third person's company, persons who participate in the company with more than ¼ parts, a person or a company who who because of their rank, legal, contractual or any other connections have the opportunity to be proxies to the Principal/Third person.
3.1. The offer of a Mediator is based on information received in writing and orally by the Principal (hereinafter: the Offer) and which is shown on the Mediator's official website. There is a possibility of an error in the description and the price of the property (eg. advertised property is sold/rented/leased or the property owner withdrew from the sale/rental/lease of their property), which the Mediator isn't responsible for.
3.2. The Principal has to treat the Mediator's offers and notifications as confidential, and only with our written approval may he transfer them to a third party i.e. disclose them to the Third party.
3.3. If the Principal i.e. the offer recipient is already acquainted with the properties the Mediator offers to them, they are obliged to inform the Mediator immediately (immediately for the verbal offers, within the two (2) days time frame for the written offers received which complies with article 20.1. of these General terms.PRICES OF REAL ESTATE PROPERTIES
Real estate prices are usually expressed in Euros, can be expressed in Kunas on the day of offer to interested third parties.MEDIATION CONTRACT
5.1. By concluding the Mediation contract, the mediator obliges to correlate the third party with the Principal for negotiations and the conclusion of the mediated legal affair, according to the provisions of article 21. of the Real estate brokerage act, and the Principal is obligated to pay him the agreed fee (Commission) if the latter is concluded.
5.2. The Mediation contract is concluded between the Mediator and the Principal in written form
5.3. The mediation contract is concluded for a fixed-term. The exact period of the contract duration is defined by the Mediation contract, for each particular case of mediation separately.
The mediation contract can be extended repeatedly by signing a written agreement by both the contracting parties.
5.4. If the contracting parties do not set the exact period of duration of the Mediating contract, it is considered to last for a fixed-term of twelve (12) months.
5.5. The Mediator and the Principal may unilaterally cancel the contract in writing at least 15 (fifteen) days prior to the expiry of the agreed period if he/she does not want to continue mediation. The contract shall be canceled in writing which complies with the article 20.1. of these General terms. If the Mediation contract does not terminate as stated above, it is extended to the same contractual deadline.
5.6. In case of the tacit extension of the contract term, both the Mediator and the Principal can terminate the contract, which complies with the article 19.1. and 20.1. of these General terms.
5.7. The mediating contract can be tacitly extended once. After the expiration of the double period the contract was extended to, the contract expires without exceptions, and a new mediating contract has to be concluded if the parties wish to continue with the contractual relationship.
5.8. The Mediator can reject to conclude the Mediation contract with the Principal based on his discretion, and especially in case of the following:
- If the Principal is a minor, person with reduced or limited work and legal capacity, when a valid authorization / power of attorney of the legal representative of these persons does not exist or is not presented to the Agency,
- If there is reasonable doubt regarding the identity or if the identity of the natural or legal persons can not determine the Principal or given information is untrue,
- If the Principal as a legal person is in bankruptcy, or his conduct indicates that he is indebted or incapable of paying the mediation fee, or if any Principal's outstading payment to the Agency arears,
- If upon special request of the Mediator, the Principal refuses to give information about the members of his family household or close physical or legal persons.
5.9. The data indicated in the Mediation contract that is important for the sale/purchase/rent/lease of the property must be complete, truthful and accurate, especially the data about the Mediator, Principal, nature of the transaction and the relevant content of the job in which the Mediator mediates, about the mediation fee and other possible expenses that may arrise when the Mediator, in agreement with the Principal, conducts for him or the Third parties the services related to the subject of the mediation.
5.10. The Mediator may, on the insistance of the physical or legal persons which show interes, and based on their written or verbal consent, exert the service of advertising their property on their official website and register it in the registry of real estate mediation (hereinafter: the evidence), although they may not have concluded the mediating contract at the moment of giving the order for advertising. When the Third party, i.e. a potential buyer, shows interest for the property in question, the Mediator will inform the beforementioned physical or legal person, and conclude with them the Mediating contract if the person wishes to conclude it. On the contrary, the Mediator is not obliged to bring the potential acquisior in contact with that person. EXCLUSIVE MEDIATION
6.1. With the Mediation contract the Principal may undertake not to engage any other Mediators (exclusive mediation) and the same must be explicitly agreed.
6.2. If during the term of the exclusive mediation Principal concludes, without the knowledge of Exclusive Mediator, legal affair through another Mediator (for which the Exclusive Mediator was given order to mediate), he/she is obliged to pay the exclusive Mediator the actual costs incurred during the mediation as well as the contractual penalty, which jointly can not be bigger than the arranged amount of the mediating fee.
6.3. In case of concluding the Mediating contract, which is used to agree on exclusive mediation, the Principal is obliged to refer any Third person, that may in any way show interes for the property which is the subject of mediation, to the Mediator.
6.4. When concluding the exclusive mediation contract, the Mediator is obliged to warn the Principal of the meaning and legal consequences of those provisions.MEDIATOR'S OBLIGATIONS
7.1. With the mediation contract the Mediator undertakes to carry out the following:
1.Attempt to find and bring the Third person in contact with the Principal to conclude the mediation process;
2. give an opinion on the market value of the property and acquaint the Customer with it;
3. introduce the Customer with the shortcomings of real estate (non-existence of the buidling permit or the operational licence)
4. Carry out the inspection of the documentation necessary for the validity of the mediation process;
5. Carry out the inspection of the documents proving ownership of the property or any other property right on the property in question and warn the Customer to the obvious deficiencies in the state of the Land registry of the property, registered property rights or other rights of the Third person on the property;
6. introduce the Customer with all the legal, tax and other obligations resulting there from legal work regarding the property;
7. do necessary actions for the presentation of the real estate on the market, advertise the property adequately, as well as do all the other activities agreed upon in the Mediation contract exceeding the usual presentation, for which actions the Mediator is entitled to regarding the specific, pre-denominated costs
8. provide the viewing of the property;
9. mediate in the negotiations and strive to come to the conclusion of the contract, if he has committed to it;
10. keep the Principle's personal information and other information provided by the Customer as a trade secret;
11. notify the Principle of any circumstances relevant for the intended transaction known to him or those he should be familiar with.
7.2. It is considered the Mediator has enabled the Principle's contact with the Third person (physical or legal) regarding the negotiations for conclusion of the mediated transaction if the Principle was enabled to contact the Third person with which they negotiated the conclusion of the mediated transaction, especially in any of the following cases:
•If he directly brought or directed the Principle or the Third person to view the underlying property
•If he organised the meeting of the Principle and the other contracting party for negotiations regaring the conclusion of the legal transaction
•If he informed the Principle of the name/phone or telefax number or email of the Third party authorised to conclude the legal transaction or informed the Third party of the exact location of the property in question or the Principle's details
7.3. The Mediator may exceptionally, in the name of and on the behalf of the Principle represent and conclude the contract of Mediation, only if the Principle has authorised him to do so. INFORMATION CONFIDENTIALITY AND OBLIGATION OF KEEPING A BUSINESS SECRET
8.1. The Mediator is obliged to keep as a business secret all the information acquired while conducting the mediating transactions, and that pertains the Principle, the property he mediates for or is associated to that property or the transaction which he mediates for or concludes based on his special authorisation.
8.2. It is not considered that the duty of keeping a business secret has been breached, if the Mediator, for the reason of protection, discloses information to persons he tries to connect with the Principal, if that is necessary for the Principal to fulfil an obligation from the Mediation contract concluded with the Principal.
8.3. By signing the Mediation contract, the Principal gives his consent to the Mediator to use and register his details including the VAT number and the personal identity number (JMBG), as well as the general business details for the purpose of his own records. The principal guarantees the validity of the VAT number and the personal identity number (JMBG) and other details indicated in the Mediation contract.
8.4. The Mediator will use all the personal details of the Principal (physical person) and the Principal (legal person) in accordance with the valid laws and regulations of the Republic of Croatia, which regulate the matters of the information secrecy protection.PRINCIPAL'S OBLIGATIONS (as a seller/lessor/landlord)
9.1. In mediation agreement the Principal (as a seller/lesee/landlord) agrees to do the following in particular:
1.to introduce the Mediator to all the circumstances and accurate information about the property that are important for the performance of the mediation and wheter he is in possession of location permit, building, or use permit for the property that is the subject of the mediation contract and to submit proof of compliance obligations to Third parties;
2. to give the Mediator the insight of the documents confirming the ownership of the property or other rights over the property that is the subject of the contract and alert the Mediator of all the registered and unregistered encumberances that exist on the property;
3. to provide the Mediator and third persons interested in concluding the mediation process the viewing of the property;
4. to notify the Mediator of all the relevant information on the requested property which specifically includes a description of the real estate and price;
5. After concluding the mediated legal work, to pay the Mediating fee in accordance with Articles 11. and 16. of these General terms;
6. If it is expressly agreed to pay the Agency for expenses incurred during the mediation that exceede the usual costs of mediation which is in accordance with article 17. of these General terms;
7. to inform the Mediator in writing of any changes related to the job for which he has authorized the Mediator, and in particular the changes associated with the ownership of the property.
9.2. The principal will be held responsible for the damage if he has not acted bona fide, if he acted fraudelently, if he witheld information or gave the incorrect information important for the mediating transaction with the goal of ending the legal matter, and is obliged to compensate all the expenses of the Mediator done in the course of mediation, and which can not exceed the mediating fee for the mediated matter.
9.3. At the time of concluding or during the course of duration of the Mediating contract, the Mediator can ask the Principal (as a physical person) for details of the members of his family household, i.e. details of close persons of the Principal (legal entity) which the latter is obliged to present.
9.4. The Principal is not obliged to enter into negotiations for concluding the mediated matter with the Third party that the Mediator found, or conclude the legal matter, and the provision of the contract which states the opposite is invalid.
But the Principal will be held responsible for the damage, if he didn't act bona fide and/or he for no reasonable grounds withdrew from the arranged conclusion of the legal act, and he is obliged to compensate for all the costs done in the course of the mediation, which can not exceed the mediating fee for the mediated matter.
9.5. The Principal is obliged to, in case he found the Third person himself and concluded with them the legal act regarding the property which is the matter of the mediating, inform the Mediater in writing, which is in accordance with the Article 20.1. of these General terms, within two (2) days of the contract concluded with the Third party, and cancel the Mediation contract. In that case, the Principal is required to compensate the Mediator for all the costs only if those were arranged specifically and if they were incured in compliance with Article 17. of these General terms.PRINCIPAL'S OBLIGATIONS (as a buyer/ tennant/lessee)
10.1. By signing the Mediation contract, the Principal (as a buyer/tennant/lessee) obliges to, besides the relevant applicable duties from Article 9., notify the Meidator on all the changes of circumstances that arose and that are important for concluding the sale/purchase contract or any other legal act. The mentioned changes of circumstances may be as follows: change of purchasing power, possibility of obtaining a bank loan, the need for and desires regarding the type or size of the property and its price.MEDIATION FEE
11.1. The Mediator charges Mediation fee for his work and the amount of the fee is arranged in the Mediation contract i.e. in these General terms.
11.2. The Mediator is entitled to a mediation fee for the mediation done in the transaction of the sale/purchse, lease or renting of a property. If not stated differently in the Mediation contract, the amount of the fee is in accordance with the Price list from Article 16. of these General terms. The amount of the commission fees from the Price list has been adjusted to the tarifs of the Croatian Chamber of Economy.
11.3. The Mediator is entitled to the mediating fee in full immediately after the first mediated legal act has been concluded between the contractual parties (e.g. the preliminary contract, the sales/buying contract etc.), and the mediating commission fee is payable and due the latest at the moment of payment for any part of the transaction price or anything else, and that is regardless of the percentage in relation to the complete amount that has to be payed, except when the Mediating contract states differently.Article 12.
12.1. For the properties from the actual evidence of the Mediator (real estate offer available on the official website) the buyer/lesee/tennant does not pay the Mediation fee in case of the mediated transaction.
The Mediator from MEN-ARS Ltd. does not charge the mediating fee from each contractual party involved in the mediated transaction, except in the cases when the opposite has been arranged.
12.2. The Mediation fee which the Principal as a buyer/lesee/tennant pays, is charged just in case it has been specifically arranged or the Mediator received a written order from the Principal to search a specific type of property which the Mediator does not currently have in its listing of Offers i.e. for which he hasn't concluded contracts with their owners. Article 13.
13.1. If the Principal proposes to the Mediator a mediation fee which is bigger than the maximum determined by the Mediation fee/General terms/ effective legal regulations, or if such is agreed upon, the amount above the maximal amount of the mediation fee will be considered sui generis award, so the Mediator is allowed to accept such an award under the condition that it is not in an obvious disproportion with his services or the outcome of his work and the finantial status of the Principal.Article 14.
14.1. The Principal is obliged to pay the mediation comission fee even if he, together with the Third party, which he has been directed to by the Mediator and which the Mediator liaised him with, concluded a legal act different from the one he Mediated for, and which achieves the same or similar objective as the mediated matter, e.g. when instead the sales/purchase contract a lease contract is concluded etc. In that case the mediation fee is charged in accordance with the Price list in Article 16. of these general terms.
14.2. The Mediator is entitled to a mediating fee if the member of a family household of the Principal/Third party i.e. a close person of a Principal legal entity/Third party concludes the mediated legal acts with the Third party/Principal, and which has been liaised with the Principal/Third party by the Mediator.Article 15.
15.1. The Mediator can exclusively arrange the right for compensation of the costs required for performing the order and ask for the down-payment of the funds for certain expenses.PRICE LIST
16.1. Mediation fee for mediation of sale/purchase, exchange, lease and rent of the property; MEDIATION FEE FOR SALE/PURCHASE
– download the pdfMEDIATION FEE FOR LEASE/RENT
– download the pdf
All the amounts that have been stated in the General terms, both if they are stated as a percentage or an absolute monetary amount, are stated without the adjoining VAT amount, which is, according to the effective regulations, charged and payed on top of the amount stated in the General terms.
16.2. The fee stated in the Price list also includes performing all the actions of the Mediator stated in Article 7.1. of these General terms.MEDIATOR'S EXPENDITURES
17.1. All the possible additional expenses that occured in the course of mediation are compensated to the Mediator, they have to be specifically regulated and stated in the Mediation contract, otherwise the Principal is not obliged to compensate them.
17.2. By means of Mediation contract the Mediator and the Principal can specifically arrange that the Principal also obliges to pay the expenditures that arose in the course of mediation regardless of the result of the mediation and that is in the amount of the actual resources spent and/or according to the Mediation hourly wages.
17.3. In case of performing the activities not included in Article 7.1. of these General terms or if it has been specifically arranged, the price of the mediation hourly wage is 300,00 kn, incremented for the amount of VAT.
17.4. In case of performing the activities not included in Article 7.1. of these General terms, and that relate to the special requitements of the Principal, the Mediator is entitled to, besides the mediation hourly wage, to the compensation of those expenses (e.g. expenses of reinforced advertising, material expenses, service of the surveyor, assessor, lawyer etc.), only in case the latter have been specifically arranged and if they really occured and that is in the amount of really spent funds, which the Mediator proves to the Principal based on the issued receipts.
17.5. Prior to concluding a Mediation contract and listing the property in the register of Offers, the Mediator may, based on his free estimation, ask the potential Principal to pay for the mediation hourly wage (in case of unattractive and/or distant properties) which covers the cost of transport, viewing, taking photographs and listing the property in the official website, whereby the Mediator is also obliged to inform and warn the potential Principal of the complete amount of the mediation hourly wage.
17.6. The cost of the legal or administrative charges that incured with goal of obtaining the required ownership and similar documentation, which are a prerequisite to put the property on the market, registration of the property right in the Land register, writing the contract and documentation in form of public notary deeds, bears the Principal, regardless of whether it has been agreed on with the contract or not. SUBAGENT CONTRACT
18.1. The Mediator can transfer the Mediation contract onto other mediators (subagents), and by accepting these General terms, the Principal irrevocably agrees to it.
18.2. In case of paragraph 18.1. of this Article, the Principal stays in contractual relation only with the Mediator with who he concluded a Mediation contract, i.e. with the subagent onto which the Mediation contract was transferred, and the Mediator will submit to the Principal the list of the subagents onto which the Mediation contract transfers.
18.3. . In case of paragraph 18.1. of this Article the Mediation fee which is being paid to the mediator can not exceed than in case when there is not subagent. TERMINATION OF THE CONTRACT
19.1. The Mediation contract terminates:
- Upon realization (conclusion of the contract between the Principal and the Third party the subject of which is the mediated property).
- By cancelation of any of the contractual parties,
- Cancelation in case of 19.4. of these General terms
- Expiry of the contract, if that has explicitly been arranged between the Mediator and the Principal
19.2. If the Mediator and the Principal don't explicitly arrange that the Mediation contract stops with the expiry of the period of its duration, the contract is tacitly extended for the period it was initially concluded on (article 5.3. – article 5.7. of these General terms).
19.3. The Mediator and the Principal can cancel the Mediation contract at any time, if that is not in breech of the principles of fairness, with implementation of the deadline of three (3) days, after which all the contractual parties do not have any claims to each other. If the Principal, before the expiry of the arranged deadline, unilaterally cancels the Mediation contract, the Mediator is entitled to the compensation of the expenses only in case those have been explicitely arranged and really occured, in accordance with Article 17. of these General terms.
19.4. If in case of the Principal's death, his heirs or the members of the family he lived with in the same household notify the Mediator of the Principal's death, the Mediation contract is considered to be terminated in the moment of the Principal's death. Otherwise, all the rights and duties of the Principal are transfered to his heirs who are, out of solidarity, responsible for the duties of the Principal stated in the Contract.
19.5. When the Mediation contract terminates for the reason of time expiration, contractual parties do not have any claims on each other. The Principal is obliged to compensate the Mediator for all the expenses that were arranged for the Principal to pay separately and that really occured, in accordance with Article 17. of these General terms.
19.6. The Principal will take the mediation into account even after the Mediation contract has concluded, for the period not longer than the duration of the concluded Mediation contract, if the Principal concludes a legal act with the Third party which is in general the result of the Mediator's actions before the contract's termination. In that case the Principal is obliged to pay the mediation fee in full.
19.7. If the Principal, for no valid, objective and legally acceptible reason withdraws from already arranged sale/purchase, for which he accepted the offer of the Third party, he is obliged to compensate the Mediator all the damage if, at acting so, he did not act bona fide as well as all the costs/ hourly wages wasted for mediation, which can not be higher than the mediation fee for the mediated affair.FINAL PROVISIONS
20.1. All the written correspondence, notifications and other statements that arise from the Mediation contract, have to be delivered to the customer in person, or sent by registered mail or one of the generally recognised courier services with acknowledgement of receipt or telefax.
20.2. The Principal and the Mediator are obliged to inform each other in writing, in compliance with Article 20.1. of these General Terms about all the changes regarding the identitiy, address and head quarters immediately, and the latest within seven (7) days of the change that occured. Otherwise, the Principal and the Mediator agree to have all the mail delivered, including the deliveries in possible legal actions, consider delivered to the address stated in the contract, i.e. to the last address that one of the contractual parties correctly provided to the opposite contractual party.
20.3. If the contractual parties The Principal and the Mediator define their contractual relations differently than stated in these General terms of business, then the Mediating contract provision apply.
20.4. For all the other relations that were not stated by these General terms or the Mediation contract, provisions of the effective Real Estate Brokerage act, the effective Civil Obligations Act, the effective General Administrative Procedure Act and the effective Consumer Protection Act shall apply, as well as other laws effective in the Republic of Croatia.
20.5. In case of a dispute that arose between the contractual parties, and which could not be solved by agreement, the Municipal Court in Varaždin is in charge, unless otherwise is arranged.
20.6. These General terms will be published on the official website of the Mediator, www.men-ars.hr, and will be accessible at the official premises of the Mediator.
20.7. All the changes and amendments to these General terms have to be put into writing and published in accordance with the Article 20.6. of these General terms.
20.8. These General terms come into effect and are applied from 1 July 2014.
In Varaždin, 1 July 2014.
MARIO MENDEK, B.Sc. (Econ.)