In accordance with the provisions of the Real Estate Brokerage Act (Narodne Novine; 107/07, 144/12, 14/14, 32/19), WH SUNCE, a real estate brokerage business owned by Walter Hrovat, located at Pod vrh 30, Ližnjan, Tax ID: 57026902074, hereby adopts the following general terms of business on July 10, 2024:

GENERAL TERMS AND CONDITIONS

1. General provisions

These general terms and conditions (hereinafter: “terms”) govern the business relationship between the real estate broker and the individual or legal entity (hereinafter: “client”) who enters into a real estate brokerage agreement with the broker. The Terms are an integral part of the real estate brokerage agreement between the broker and the client.

By signing the brokerage agreement, the client confirms that they are aware of and agree with all provisions of these terms, including those related to the engagement of the broker’s agents.

By accessing any part of the website suncerealestate.com, you agree to all the provisions and conditions set out in these terms. If you do not agree with these terms, please do not use this site.

2. Definitions of terms in the general terms and conditions

The terms used in the Real Estate Brokerage act and in these General terms and Cconditions have the following meanings:

Agent: A natural person registered in the directory of real estate agents.
Broker: A company, sole trader, or craftsman registered for real estate brokerage activities, with headquarters in the Republic of Croatia or a member state of the European Economic Area.
Brokerage agreement: A written document whereby the broker commits to finding a person for the client to negotiate and conclude a specific legal transaction, and the client agrees to pay the agreed commission if the transaction is successfully concluded.
Brokerage fee: The amount the client agrees to pay the broker for the brokerage service.
Client: A natural or legal person who enters into a written real estate brokerage agreement with the broker.
Exclusive brokerage agreement: A written agreement whereby the client commits not to engage any other broker for the specified transaction. If the client concludes a transaction through another broker during the term of this agreement, they must pay the agreed commission and any additional incurred costs.
Real estate: Land parcels along with any permanently attached structures, in accordance with the provisions of the general law on ownership and other property rights.
Real estate brokerage: Activities of the broker related to finding and connecting the client with third parties, and negotiations and preparations for concluding legal transactions concerning real estate.
Third party: A person the broker connects with the client for the purpose of negotiations and concluding legal transactions concerning real estate.

3. Real state offer

The broker’s real estate offer is based on information received in writing or orally and is subject to confirmation.

The broker is not responsible for any errors in real estate listings if the client fails to timely inform about price reductions, withdrawal from sale/rental/lease, completed sale/rental/lease, or if relevant information about the properties is withheld.

The client must keep the broker’s real estate offer and notifications confidential and may share them with another person only with the broker’s written consent.

If the client is already aware of a property covered by the brokerage agreement, they must immediately inform the broker in writing, via email, or by registered mail.

4. Broker’s obligations

Upon entering into a real estate brokerage agreement with the client, the broker commits to the following duties with due diligence and professionalism:

Actively seeking and connecting the client with potential parties for the agreed transaction.
Informing the client about the average market prices of similar properties.
Obtaining and reviewing documents that prove ownership or other real rights on the property.
Performing necessary activities for the property’s market presentation, including advertising, and executing all other agreed tasks from the brokerage agreement, for which the broker is entitled to specific, pre-disclosed costs.
Facilitating property viewings.
Mediating negotiations and striving to conclude preliminary or final contracts if specifically agreed.
Protecting the client’s personal data and, upon the client’s written request, keeping information about the property and related transactions confidential.
If the subject of the agreement is land, verifying the land’s intended use in accordance with spatial planning regulations.
Informing the client of all relevant circumstances known or that should be known regarding the intended transaction.
Conducting all necessary negotiations and preparatory actions for concluding the legal transaction related to real estate brokerage.
If the broker agrees with the client to perform additional tasks related to the brokerage, these tasks and the associated costs must be specifically agreed upon.

The broker is not responsible for the non-fulfillment of obligations by the client or third parties, which were undertaken by a legal transaction between the client and the third party concerning the property brokered by the broker.

5. Establishing contact with third parties/Property owner

It is considered that the broker has enabled the client to establish contact with a third party (individual or legal entity) with whom negotiations for a legal transaction have taken place, particularly in the following cases:

Directly bringing or directing the client to view the property.
Organizing a meeting between the client and the third party for negotiation purposes.
Providing the client with the name, phone number, email address, or fax number of the third party authorized to conclude the legal transaction or informing them of the exact location of the sought property.
The client receives from the broker an offer or email containing information about the property and/or its owner or a third party, or its associated company/another entity authorized to conclude the legal transaction, showing interest in the transaction concerning the property.
Facilitating contact with the third party in any other way that leaves no doubt about the identification of the authorized person for negotiation and/or conclusion of the legal transaction.

If the client is already familiar with the properties offered or has already made contact with the third party, they must immediately notify the broker in writing, via email, or by registered mail. Otherwise, it is considered that the broker has established contact with the property or the third party.

6. Client’s obligations

By entering into a real estate brokerage agreement, the client agrees to perform the following duties:

Inform the broker about all relevant circumstances for the brokerage and provide accurate information about the property. If available, provide the broker with location, building, or occupancy permits and proof of obligations fulfilled towards third parties.
Allow the broker to review documents proving ownership or other real rights on the property and inform the broker of any registered or unregistered encumbrances.
Facilitate property viewings for the broker and interested third parties.
Notify the broker about all key details of the sought property, including its description and price.
After concluding the legal transaction or preliminary contract, if the right to the brokerage fee is agreed to be earned upon signing the preliminary contract, pay the broker the agreed fee unless otherwise specified.
If explicitly agreed, reimburse the broker for expenses incurred during the brokerage that exceed usual costs.
Inform the broker in writing of any changes related to the authorized transaction, especially changes in property ownership.

The client is not obligated to enter into negotiations or conclude a transaction with a third party found by the broker.

The client will be liable for damages if acting in bad faith and must reimburse all brokerage expenses, which cannot be less than 1/3 or more than the agreed brokerage fee.

By signing the brokerage agreement, the client confirms and guarantees under material and criminal liability that they are the person they claim to be, otherwise, they are liable for all damages caused to the broker or any other party in the brokerage transaction.

By signing the agreement, the client confirms that they have voluntarily provided their personal data, including the tax number, for the purpose of participating in the real estate transaction or other legal business and for clear identification purposes.

The client agrees to provide the broker with all necessary information and data required to be collected under the Anti-Money Laundering and Terrorist Financing Act when concluding a purchase agreement with a third party.

7. Anonymous client

A broker who conducts brokerage services for a client who wishes to remain anonymous is not obligated to disclose the client’s identity to a third party wishing to enter into a legal transaction with the client until the legal transaction is concluded.

8. Brokerage fee

The brokerage fee paid by the client for the service of brokering the purchase and sale of real estate is 3% of the purchase price, unless otherwise agreed in the brokerage agreement between the broker and the client. The corresponding amount of VAT will be calculated on the stated brokerage fee percentage.

9. Right to brokerage fee

The broker earns the right to the brokerage fee after the conclusion of the contract for which they brokered, unless it is agreed that the right to the fee is earned upon the signing of a preliminary contract and/or the first legal act between the client and the third party.

In case of delayed payment of the brokerage fee, statutory default interest will be charged.

The broker cannot demand partial payment of the brokerage fee in advance, i.e., before the conclusion of the contract, preliminary contract, and/or first legal act.

The broker can charge the costs of additional services related to the transaction in the amount of actual costs if specifically agreed upon between the broker and the client.

After the termination of the brokerage agreement, the broker is entitled to the agreed brokerage fee within 12 months, unless otherwise agreed, if the client concludes a transaction with a third party resulting from the broker’s actions before the termination of the brokerage agreement.

The broker is entitled to the brokerage fee if the client’s spouse, common-law partner, descendant, parent, relative in the direct or collateral line, person related by marriage, or any person connected with the client (e.g., relative, authorized person, employee, employer, collaborator, etc.) concludes a contract/preliminary contract or any other legal transaction related to real estate with the person introduced by the broker.

The provisions of the sixth paragraph of this article also apply to legal entities established by the client or any other person from the previous paragraph, or if such persons perform management or other duties in the legal entity.

The brokerage fee does not include the following costs borne by the client:

Translation of all documents related to the subject of this contract by an authorized court interpreter.
Court fees for registration, pre-registration, and annotation.
Notary fees for certifying signatures on documents.
Costs for court fees or state stamps for obtaining a land registry extract, a copy of the cadastral plan, a certificate of identification, obtaining building and/or occupancy permits, as well as costs for obtaining other documentation from the competent court, state geodetic administration, bank, administrative departments of local and/or regional self-government units, and all other bodies.

The client is therefore required to provide the broker with proof of payment of these costs in a timely manner so that the necessary documentation can be obtained on time. If the broker obtains this documentation for the client, the client must reimburse the broker for material costs within eight (8) days from the date of such expense.

10. Cooperation with other real estate brokers

The broker is willing to cooperate with other real estate brokers who respect fundamental ethical principles (excluding the provision of false information about business operations to obtain clients and deals, disparaging other brokers in any way to obtain clients and deals, unrealistic property valuations to secure brokerage deals, and public statements aimed at personal promotion at the expense of others).

11. Real estate brokerage agreement

A real estate brokerage agreement obligates the broker to endeavor to find and connect the client with a person for negotiating and concluding a specific legal transaction involving the transfer or establishment of a certain right on the property, and the client agrees to pay a specified brokerage fee if the legal transaction is concluded.

The real estate brokerage agreement is made in writing and for a fixed period.

The agreement between the broker and the client must include details about the broker, the client, the type and essential content of the transaction for which the broker is mediating, the amount of the brokerage fee, and any additional costs incurred when the broker performs additional services related to the transaction as agreed with the client.

The real estate brokerage agreement may also include other details related to the transaction being mediated (e.g., the deadline and conditions for paying the brokerage fee, liability insurance information, conditions for ensuring payment of the brokerage fee, etc.).

12. Exclusive brokerage

A real estate brokerage agreement may obligate the client not to engage any other broker for the mediated transaction (exclusive brokerage), which must be explicitly agreed upon.

If, during the term of the exclusive brokerage agreement, the client concludes a legal transaction through another broker for which the exclusive broker was authorized, the client must pay the exclusive broker the agreed brokerage fee and any additional actual costs incurred during the brokerage for the specified transaction.

Upon entering into an exclusive brokerage agreement, the broker must specifically inform the client about the significance and legal consequences of this clause.

13. Sub-brokerage agreement

The broker may transfer the real estate brokerage agreement to other brokers if agreed upon by the broker and the client.

In this case, the client remains in a contractual relationship only with the broker with whom they entered into the agreement, and the broker will provide the client with a list of brokers to whom the real estate brokerage agreement is transferred.

14. Termination of brokerage agreement

A brokerage agreement concluded for a fixed term ends upon the expiration of the agreed period if a contract for which the brokerage was provided is not concluded within that period, or by termination by either party, if such an option is provided in the brokerage agreement.

In the case of an agreed possibility of unilateral termination of the brokerage agreement, if the notice period is not explicitly specified in the agreement, the notice period is 30 days from receipt of the termination sent by registered mail with return receipt.

The termination process of the brokerage agreement cannot occur at an inappropriate time, intended to deprive the broker of the brokerage fee or to cause harm.

If within 12 months after the termination of the brokerage agreement, the client concludes a legal transaction that is a result of the broker’s actions before the termination, the client is obliged to pay the brokerage fee in full.

The client is obliged to reimburse the broker for incurred costs that were explicitly agreed to be paid separately by the client.

15. Due diligence in legal transactions

The broker must perform brokerage tasks and other activities related to brokerage with increased diligence, according to professional standards and practices (due diligence of a good professional).

16. Advertising properties

When advertising properties in public media, other written and electronic media, in the broker’s premises, or other permitted places related to the property being brokered, the broker is required to publish their company name.

17. Liability insurance for damages

A real estate broker is required to obtain and maintain liability insurance with an insurer in the Republic of Croatia for damages that may be caused to the client or third parties during the course of brokerage.

The minimum insured amount for damages caused by the broker during brokerage activities must not be less than 26,500 EUR per incident, and 79,500 EUR for all claims in one insurance year.

The broker can also be insured with an insurer in a member state of the European union and the European economic area.

18. Confidentiality

The broker is required to keep all information learned during the brokerage process confidential. This includes information related to the client, the property being brokered, or any associated transactions or activities performed under special authorization.

If the broker breaches their duty of confidentiality, they are obligated to compensate the affected parties for any damages incurred due to the disclosure or failure to protect the confidential information.

It is not considered a breach of confidentiality if the broker discloses information to individuals necessary to fulfill their obligations under the real estate brokerage agreement with the client.

19. Final provisions and dispute resolution

For relationships between the broker and the client arising from the real estate brokerage agreement that are not regulated by these general terms or the brokerage agreement, the provisions of the Real Estate Brokerage Act and the general provisions of the Obligations Act apply.

These general terms take effect on the date of adoption and remain in force until new/amended general terms are adopted.

Any disputes between the broker and the client will be attempted to be resolved amicably; otherwise, the competent court in Rijeka will have jurisdiction.

20. Final provisions and dispute resolution

For relationships between the broker and the client arising from the real estate brokerage agreement that are not regulated by these general terms or the brokerage agreement, the provisions of the Real estate brokerage act and the general provisions of the Obligations act apply.

These general terms take effect on the date of adoption and remain in force until new/amended general terms are adopted.

Any disputes between the broker and the client will be attempted to be resolved amicably; otherwise, the competent court in Pula will have jurisdiction.