GENERAL TERMS AND CONDITIONS FOR REAL ESTATE BROKERAGE

GENERAL TERMS AND CONDITIONS FOR REAL ESTATE BROKERAGE

I. Meaning of Terms Contained in the General Terms For the purposes of these General Terms, the following terms have the following meanings:

• Real Estate Broker: Virtus upravljanje d.o.o. Rijeka, OIB: 46096970345, Brajda 10, Rijeka, a company that meets the conditions for performing real estate brokerage activities defined by the Real Estate Brokerage Act (hereinafter: the Broker).
• Real Estate Agent: A natural person registered in the Directory of Real Estate Agents who is either employed by the Broker or cooperates with the Broker based on a special contract (hereinafter: the Agent).
• Real Estate Brokerage: Actions of the real estate broker regarding the connection of the principal and a third party, as well as negotiations and preparations for concluding legal transactions whose subject is a specific property (e.g., purchase, sale, exchange, rent, lease, etc.) (hereinafter: Brokerage).
• Principal: A natural or legal person (acting as a seller, buyer, lessor, lessee, landlord, tenant, etc.) who concludes a written brokerage agreement with the real estate broker.
• Brokerage Agreement: A contract which, in accordance with the Law, regulates the obligations and rights of the Principal and the Broker with the aim of concluding a specific legal transaction on the transfer or establishment of a specific right on real estate (hereinafter: the Agreement).
• Third Party: A person whom the real estate broker seeks to connect with the Principal for negotiations with the aim of concluding a legal transaction from the brokerage agreement.
• Real Estate Brokerage Act: The basic legislative framework regulating the conditions for performing brokerage activities, the method of concluding and the content of the brokerage agreement, general terms and conditions, rights and obligations of brokers, agents, and principals, and other related matters (hereinafter: the Act).

II. General Provisions These General Terms and Conditions regulate the relationship between the Broker and the Principal who conclude a Brokerage Agreement and represent an integral part of that Agreement.

III. Real Estate Offer The Broker's offer is based on information received in writing and/or verbally from the Principal as the owner of the property (or a person authorized by them) offered for sale, lease, rent, or exchange, and contains a description and price of the property. The Broker is not responsible for the truthfulness and accuracy of the data received from the Principal.

IV. Real Estate Brokerage Agreement By concluding the Agreement, the Broker undertakes to try to find and bring a Third Party into contact with the Principal to negotiate and prepare for the conclusion of a specific legal transaction regarding real estate. The Principal undertakes to pay a specific brokerage fee (hereinafter: Fee) upon the fulfillment of the agreed conditions.

• Duration: The Agreement is concluded in writing for a fixed term. If no term is specified, it is considered concluded for 12 months and can be extended by mutual agreement.
• Transfer: The Broker may transfer this Agreement to other brokers, remaining the sole contractual partner to the Principal.
• Termination: The Agreement ends upon expiration, upon completion of the transaction, or by written cancellation sent to the address or official email specified in the Agreement. Cancellation must not be contrary to the principle of good faith or intended to deprive the Broker of the Fee (in which case the Broker is entitled to double the Fee). Upon cancellation, the Principal must reimburse any expressly agreed-upon extra costs.
• Post-termination Clause: If, within 12 months after the Agreement expires, the Principal (or their spouse, close relative, or affiliated legal entity) concludes a transaction resulting from the Broker's prior actions, they must pay the Broker double the Fee amount.

V. Exclusive Brokerage Through an Exclusive Brokerage Agreement, the Principal agrees not to hire any other broker for the mediated transaction. If the Principal concludes a transaction through another broker during this period, they must pay the exclusive Broker the agreed Fee and any additional actual costs. The Broker must explicitly warn the Principal about the legal consequences of this clause.

VI. Broker's Obligations The Broker is obliged to act with the care of a good professional, specifically to:

• Find and bring a Third Party into contact with the Principal.
• Inform the Principal of the average market price of similar properties.
• Obtain and inspect documents proving ownership or other real rights.
• Warn the Principal of obvious defects or third-party rights (encumbrances).
• Perform necessary marketing actions and organize property viewings.
• Mediate in negotiations to facilitate a contract.
• Keep the Principal's personal data and property details confidential (if requested in writing).
• Check the zoning purpose of land in accordance with spatial planning regulations.
• Inform the Principal of all relevant circumstances known to the Broker.
• Familiarize the Principal with the Anti-Money Laundering and Terrorist Financing Act provisions.
• Prepare draft contracts in cooperation with a lawyer.

VII. Principal's Obligations By concluding the Agreement, the Principal undertakes to:

• Inform the Broker of all circumstances important for the brokerage.
• Provide all necessary documents (ID, land registry extract, building permits, energy certificate, etc.).
• Provide accurate property data and warn of any registered or unregistered encumbrances.
• Allow property viewings for the Broker and interested Third Parties.
• Pay the Broker's Fee after the conclusion of the pre-contract (or main contract if no pre-contract exists).
• Reimburse any agreed-upon costs exceeding standard brokerage expenses.
• Notify the Broker in writing of any relevant changes, especially ownership changes or if they independently conclude or abandon the transaction.
• Note: The Principal is not obliged to enter into negotiations or conclude a transaction with a Third Party found by the Broker. However, they are liable for damages if acting in bad faith, covering costs not less than 1/3 and not exceeding the agreed Fee. The Principal is also liable for damages if they act fraudulently or provide false information.

VIII. Brokerage Fee The Broker is entitled to the Fee stipulated in the Agreement immediately after the conclusion of the first legal act (pre-contract or main contract) with a Third Party introduced by the Broker.

• A 25% VAT is added to the fee amount.
• The fee covers all standard Broker actions (Section VI). The Broker may agree on advance payment for specific additional costs.
• Failed Transactions: If the main contract is not concluded after the pre-contract through no fault of the Principal, the Principal agrees to pay a fixed fee of 1,000.00 EUR + VAT. Withdrawal by the Principal from obligations assumed by a pre-contract does not affect their obligation to pay the Fee.
• Introduction to a Third Party: The Broker is considered to have introduced the Third Party if they: brought the party to view the property, organized a meeting, provided the party's contact details to the Principal, or provided the precise property location to the Third Party.

IX. Fee Amount

• Sales/Purchases: 2-4% of the total purchase price. For properties valued at 35,000.00 EUR or less, the fee is a fixed 1,000.00 EUR + VAT (calculated in HRK equivalent at the CNB middle exchange rate on the payment day).
• Rent/Lease: One month's rent/lease amount + VAT.
• The Fee can be charged to both the seller and the buyer (or landlord and tenant) if a Brokerage Agreement is signed with both.

X. Final Provisions For anything not expressly defined by these General Terms, the Real Estate Brokerage Act, the Civil Obligations Act, and other legal regulations will apply. These General Terms and Conditions are applicable from September 8, 2022.