General Terms and Conditions

General Provisions

The General Terms and Conditions of Business (hereinafter referred to as the “General Terms”) of the real estate brokerage govern the business relationship between the broker and the natural or legal person (hereinafter referred to as the “principal”) who enters into a Real Estate Brokerage Agreement with the broker.

The General Terms are an integral part of the Real Estate Brokerage Agreement concluded between the broker and the principal.

By entering into the Brokerage Agreement, the principal confirms that they are familiar with and agree to all provisions of the broker’s General Terms and Conditions, including in the event of engaging the broker’s agents.

By accessing any part of the website www.modeko.hr and the listings through which the broker advertises (https://www.njuskalo.hr/investitor/constigo-grupa), you agree to all the provisions and conditions set forth in the General Terms. If you do not agree to all General Terms, please do not use these websites and the broker’s services.

Definitions of Terms Used in the General Terms of Business

Certain terms as defined in the Real Estate Brokerage Act and the General Terms have the following meanings:

• Broker means a company, sole trader, or craftsman registered to perform real estate brokerage activities with headquarters in the territory of the Republic of Croatia. It also includes companies, sole traders, or craftsmen registered to perform brokerage activities with headquarters in the territory of a contracting state of the European Economic Area Agreement.
• Broker’s Agent means a natural person registered in the Register of Real Estate Brokerage Agents (hereinafter: “Agent”).
• Real Estate Brokerage means the activities of the broker relating to connecting the principal with a third party, negotiating, and preparing for the conclusion of legal transactions concerning a specific real estate, especially in purchase, sale, exchange, lease, rental, and similar transactions.
• Real Estate means parcels of land, together with everything permanently attached to the land on the surface or below it, in accordance with the provisions of the general property and other real rights regulations.
• Principal means a natural or legal person who enters into a written Real Estate Brokerage Agreement with the broker (seller, buyer, lessee, lessor, landlord, tenant, or other possible participants in real estate transactions).
• Third Party means a person whom the broker attempts to connect with the principal for negotiating and concluding legal transactions related to the specific real estate.
• Real Estate Brokerage Agreement means a written document whereby the broker undertakes to seek and connect the principal with a person for negotiating and concluding a specific legal transaction regarding the transfer or establishment of a certain right on real estate, and the principal undertakes to pay the broker a brokerage fee if such a legal transaction is concluded.
• Exclusive Brokerage Agreement means a written document whereby the principal agrees not to engage any other broker for the mediated transaction. If, during the term of the Exclusive Brokerage Agreement, the principal concludes a legal transaction through another broker, for which the exclusive broker had an order to mediate, the principal is obliged to pay the agreed brokerage fee and any additional actual costs incurred during mediation to the exclusive broker. Upon concluding the Exclusive Brokerage Agreement, the broker is obliged to specially inform the principal of the meaning and legal consequences of this clause.
• Brokerage Fee means the amount the principal agrees to pay the broker for the brokerage service performed.

Real Estate Offer

• The broker’s real estate offer is based on data received in writing or verbally and is subject to confirmation.
• The broker disclaims responsibility for any possible errors in the real estate listings due to untimely notifications from the principal about price reductions, possible withdrawal from sale/lease/rent, completed sales/leases/rents, or failure to provide relevant information about the real estate by the principal.
• The principal must keep the broker’s real estate offers and/or notifications confidential and may only transfer them to other natural or legal persons with the broker’s written consent.
• If the real estate subject to the Brokerage Agreement is already known to the principal, they are obliged to notify the broker immediately in writing, by email, or by registered letter.

Broker’s Obligations

Upon concluding the Real Estate Brokerage Agreement with the principal, the broker undertakes to perform with the diligence of a prudent and conscientious entrepreneur especially the following:

• Strive to find and connect the principal with a person for concluding the mediated transaction,
• Inform the principal about the average market price of similar real estate,
• Obtain and inspect documents proving ownership or other real rights on the real estate in question,
• Carry out necessary actions to present (advertise) the real estate on the market, announce the real estate appropriately, and perform other actions agreed upon in the Brokerage Agreement that exceed ordinary presentation, for which they have the right to special, pre-agreed costs,
• Enable inspection of the real estate,
• Mediate in negotiations and strive to conclude preliminary agreements/contracts, if specifically obligated to do so,
• Protect the principal’s personal data and keep as business secrets, upon the principal’s written instruction, data regarding the real estate or the transaction for which the broker intermediates,
• If the subject of the contract is land, verify the land’s purpose in accordance with spatial planning regulations applicable to that land,
• Inform the principal of all circumstances important for the intended transaction that are known or should be known to the broker,
• Conduct other necessary negotiations and preparatory actions for concluding the legal transaction relating to the real estate brokerage.

If the broker, in agreement with the principal, performs other tasks related to the mediated transaction, these tasks and the type and amount of costs will be separately contracted.

The broker is not responsible for the non-fulfillment of obligations by the principal or third parties, which obligations have been assumed by the legal transaction concluded between the principal and the third party, the subject of which is the real estate for which the broker has mediated.

Establishing Connection with a Third Party/Subject Property

It is considered that the broker has enabled the principal to establish contact with a third party (natural or legal) with whom the broker negotiated for the conclusion of a legal transaction, particularly if the broker:

• Personally led or directed the principal to view the subject property,
• Organized a meeting between the principal and the third party for negotiating the legal transaction,
• Provided the principal with the name, phone number, email, or fax of the third party authorized to conclude the legal transaction or the exact location of the requested property,
• When the principal received from the broker an offer or email with data about the subject property and/or its owner or a third party, or its affiliated company, or other authorized person interested in concluding the legal transaction related to the brokerage of the property,
• Enabled the principal to contact the third party by any other means that clearly identify the authorized person for negotiation and/or conclusion of the legal transaction.

If the principal is already familiar with the properties offered or has already contacted a third party, they are obliged to notify the broker immediately in writing, via email, or by registered mail. Otherwise, it will be considered that the broker has connected the principal with the subject property or third party.

Principal’s Obligations

By entering into the Real Estate Brokerage Agreement, the principal undertakes to:

• Inform the broker of all circumstances important for the mediation and provide accurate data about the property, and if available, provide the broker access to location, building, or usage permits for the property subject to the brokerage agreement, as well as proof of fulfillment of obligations toward third parties,
• Provide the broker with documents proving ownership or other real rights on the property subject to the brokerage agreement and inform the broker about any registered or unregistered encumbrances on the property,
• Allow the broker and any third party interested in concluding the mediated transaction to inspect the property,
• Notify the broker of all essential data about the requested property, including the property description and price,
• After concluding the mediated legal transaction or preliminary agreement to conclude such a transaction, if agreed that the brokerage fee is due upon signing the preliminary agreement, pay the brokerage fee to the broker unless otherwise agreed,
• If explicitly agreed, reimburse the broker for mediation costs exceeding usual mediation expenses,
• Notify the broker in writing of all changes related to the transaction authorized to the broker, especially changes related to property ownership.

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

The principal shall be liable to the broker for damages if they did not act in good faith and shall compensate all costs incurred during mediation, which may not be less than one-third or more than the agreed brokerage fee for the mediated transaction.

By signing the Brokerage Agreement, the principal guarantees and confirms, under material and criminal liability, that they are the person they represent themselves to be; otherwise, they are liable for all damages caused to the broker and/or any other person involved in the brokerage transaction subject.

When concluding the Brokerage Agreement, the principal voluntarily provides the broker with their personal data, including VAT number (OIB), for the purpose of participating in the purchase/sale/lease process or any other legal transaction related to real estate brokerage and for establishing unequivocal identification.

The principal undertakes, upon concluding a legal purchase transaction with a third party that is the subject of the Brokerage Agreement, to provide the broker with all necessary information and data that the broker is obliged to collect about the principal and the legal transaction, as required by the Law on Prevention of Money Laundering and Terrorism Financing.

Anonymous Principal

The broker who performs brokerage services for a principal who wishes to remain anonymous has no obligation to disclose the principal’s identity to any third party wishing to conclude a legal transaction with the principal until the legal transaction is concluded.

Brokerage Fee

The brokerage fee payable by the Principal for brokerage services in the purchase and sale of real estate amounts to 3% of the purchase price unless otherwise agreed in the brokerage agreement between the Broker and the Principal. The applicable VAT amount will be added to the stated brokerage fee percentage.

Right to Brokerage Fee

The broker acquires the right to the brokerage fee upon the conclusion of the contract for which they mediated, unless it is agreed that the right to payment is acquired upon the conclusion of the preliminary contract and/or the first legal act between the principal and the third party.

In case of late payment of the brokerage fee, statutory default interest shall be charged.

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

The broker may charge for additional services related to the mediated transaction in the amount of actual costs if specifically agreed between the broker and the principal.

After termination of the Brokerage Agreement, the broker is entitled to the agreed brokerage fee within 12 (twelve) months unless otherwise agreed and in cases where the principal concludes a legal transaction with a third party related to the brokerage and as a result of the broker’s activity before termination.

The broker is entitled to the brokerage fee if a spouse, extramarital partner, descendant, parent or blood relative in the direct or collateral line, a person related by marriage to the principal, or a person otherwise connected to the principal (e.g., blood relative in any line with the above persons, authorized person, employee, employer, associate, etc.) concludes a contract/preliminary contract or other legal transaction related to the real estate with a person introduced by the broker.

The broker is entitled to the brokerage fee after concluding the contract for which they mediated even without a prior brokerage agreement with the principal if it is unequivocally established that the broker mediated the subject legal transaction, unless the broker and principal have agreed that the principal is exempt from paying the brokerage fee.

The provisions of Article 9 (nine), paragraph 6 (six) also apply to legal entities established by the principal or any other person mentioned in the previous paragraph or if such persons perform management or any other duties in the legal entity.

Brokerage fee does not include the following costs borne by the principal: translations by an authorized court interpreter of all documents relating to this agreement, court fees for registration, pre-registration and annotation, notary fees for notarizing signatures on documents, court fees or state fees for obtaining the ownership list, copies of cadastral plans, certificates of identification, obtaining building and/or usage permits, and/or costs of obtaining other documentation from the competent court, state geodetic administration, bank, administrative departments of competent local and/or regional government bodies or any other authorities.

The principal is therefore obliged to timely provide the broker with proof of payment of the mentioned costs to ensure timely procurement of said documentation. If the broker procures the documentation on behalf of the principal, the principal is obliged to reimburse the material costs to the broker within 8 (eight) days from the date the cost was incurred.

Cooperation with other brokers in real estate mediation

The broker is willing to cooperate with other brokers who respect fundamental ethical principles (excluding the dissemination of false business information to obtain clients and jobs, denigration of other brokers in any manner to obtain clients and jobs, unrealistic property valuations to obtain brokerage jobs, and media appearances for personal promotion at the expense of others).

Brokerage Agreement

The brokerage agreement obliges the broker to try to find and connect the principal with a person for negotiating and concluding a legal transaction on the transfer or establishment of rights on real estate, and the principal undertakes to pay the agreed brokerage fee if the legal transaction is concluded.

The brokerage agreement is concluded in writing and for a fixed period.

The agreement must specify, in particular, details about the broker, the principal, the type and essential content of the job for which the broker mediates, the amount of the brokerage fee, and possible additional costs incurred when the broker performs other agreed services related to the mediated job.

The agreement may contain other data related to the job mediated (e.g., deadlines and conditions for brokerage fee payment, insurance data, conditions for insurance of brokerage fee payment, etc.).

Exclusive brokerage

The broker may transfer the brokerage agreement to other brokers if agreed with the principal.

In this case, the principal remains in a contractual relationship only with the broker they signed the agreement with, and the broker will provide the principal with a list of brokers to whom the agreement is transferred.

Termination of the brokerage agreement

An agreement concluded for a fixed period terminates upon expiry of that period if no contract has been concluded for which brokerage was provided, or by cancellation by either party if such a possibility is provided in the agreement.

If the possibility of unilateral termination is agreed, but no explicit notice period is stated in the agreement, the notice period is 30 (thirty) days from receipt of notice sent by registered mail with return receipt.

The termination procedure cannot be conducted in bad faith, i.e., with the intention to deprive the broker of the right to the brokerage fee or to cause harm.

If within 12 (twelve) months after termination the principal concludes a legal transaction as a consequence of the broker’s activity before termination, the principal must pay the brokerage fee in full.

The principal is obliged to reimburse the broker for any costs that have been explicitly agreed to be separately paid.

Diligence in legal transactions

The broker must act with increased diligence, according to professional rules and customs (due diligence of a good expert), when performing brokerage services or related actions.

Advertising real estate

When advertising real estate in public media, printed or electronic, in broker’s premises or other permitted places, the broker is obliged to display their company name.

Liability insurance

The broker is obliged to maintain liability insurance with an insurer in the Republic of Croatia for damages caused to the principal or third parties while performing brokerage activities.

The minimum insured amount for damages caused in one incident cannot be less than 200,000.00 HRK, and 600,000.00 HRK for all claims in one insurance year.

The broker may also be insured with an insurer in an EU member state or the European Economic Area.

Confidentiality

The broker must keep confidential all data obtained during brokerage related to the principal, the property, or the transaction.

If confidentiality is breached, the broker is liable to compensate damages suffered by affected parties.

Disclosure is not considered a breach if done to persons necessary to conclude the transaction per the brokerage agreement.

Final provisions and dispute resolution

Relations between the broker and the principal arising from the brokerage agreement not regulated by these general terms or the brokerage agreement are governed by the Real Estate Brokerage Act and general provisions of the Obligations Act.

These General Terms come into force upon adoption and remain valid until new or amended terms are adopted.

Disputes will be resolved amicably; otherwise, the competent court in Rijeka has jurisdiction.