Terms and Conditions

PALACE REAL ESTATE Ltd. Šibenik

Matije Gupca 10, 22000 Šibenik, VAT ID: 29932722148

I.

Meaning of terms contained in the General Terms and Conditions

Certain terms in the context of these General Terms have the following meanings:

1. Real estate intermediary is PALACE REAL ESTATE Ltd. for business and property management with headquarters in Šibenik, Matije Gupca 10, VAT ID: 29932722148, which company meets the conditions for real estate brokerage determined by the Real Estate Brokerage Act (hereinafter: Intermediary)
2. Real estate brokerage agent is a natural person entered in the Register of real estate agents and employed by the Intermediary (hereinafter: Agent).
3. Real estate brokerage actions are intermediary actions related to connecting the principal and a third party, as well as negotiating and preparing for the conclusion of legal transactions related to specific real estate, particularly in buying, selling, exchanging, leasing, renting, etc.
4. Principal is a natural or legal person who enters into a written brokerage agreement with the Intermediary (seller, buyer, lessor, lessee, landlord, tenant, and other potential participants in real estate transactions – hereinafter: Principal).
5. Third party is a person the Intermediary tries to connect with the Principal for negotiating the conclusion of legal transactions related to specific real estate (hereinafter: Third party).

II.

Offer

The Intermediary's offer is based on data received in writing and/or orally from property owners who offer properties for sale, lease, or rent, as well as data contained in written and/or oral orders from the Principal.

III.

Real estate brokerage agreement

By the real estate brokerage agreement (hereinafter: Agreement), the Intermediary undertakes to try to find and connect the Principal with a Third party for negotiating and concluding a specific legal transaction related to the transfer or establishment of a specific right on the real estate and/or related to the real estate, and the Principal undertakes to pay a certain brokerage fee (hereinafter: Fee) if that legal transaction is concluded, where the concluded legal transaction also includes the conclusion of a preliminary agreement obliging the contracting parties to conclude the main agreement on the transfer or establishment of a specific right on the real estate or establishment of a specific right on the real estate and/or related to the real estate.

The agreement is concluded in writing and for a definite period.

If the contracting parties do not agree on the term for concluding the Agreement, the Agreement is concluded for a definite period of 12 months from the day of concluding the Agreement and can be extended multiple times by mutual agreement.

IV.

Termination of the brokerage agreement

The brokerage agreement concluded for a definite period terminates upon the expiry of the period for which it was concluded if the agreement for which brokerage was done is not concluded within that period.

The Principal is obliged to compensate the Intermediary for the incurred costs that were explicitly agreed to be paid separately by the Principal.

If within 12 months after the termination of the concluded Agreement, the Principal concludes a legal transaction resulting from the Intermediary's actions before the termination of the brokerage agreement, the Principal is obliged to pay the Fee to the Intermediary in full.

V.

Exclusive brokerage

By the exclusive brokerage agreement, the Principal undertakes not to engage any other intermediary for the brokered transaction.

If during the term of the exclusive brokerage agreement the Principal concludes a legal transaction through another intermediary, for which the exclusive Intermediary had been given a brokerage order, the Principal is obliged to pay the exclusive Intermediary the agreed Fee as well as any additional actual costs incurred during the brokerage for the said brokered transaction.

When concluding an exclusive brokerage agreement, the Intermediary is obliged to particularly inform the Principal about the meaning and legal consequences of the contractual clause from the previous paragraph.

The exclusive brokerage agreement concluded for a definite period terminates upon the expiry of the period for which it was concluded if the agreement for which brokerage was done is not concluded within that period.

In case of termination of the exclusive brokerage agreement for the reason stated in the previous paragraph, the Principal is obliged to compensate the Intermediary for the incurred costs that were explicitly agreed to be paid separately by the Principal.

If within 12 months after the termination of the concluded exclusive brokerage agreement, the Principal concludes a legal transaction resulting from the Intermediary's actions before the termination of the exclusive brokerage agreement, the Principal is obliged to pay the Fee to the Intermediary in full.

If the Principal cancels the exclusive brokerage agreement before the expiry of the term for which it was concluded, he undertakes to compensate the Intermediary for the damage caused by the cancellation.

In the case from the previous paragraph, the amount of the damage compensation is determined to be 3% (three percent) of the requested price of the property, as determined by the exclusive brokerage agreement, and it is determined that the obligation to compensate the damage becomes due on the day of cancellation of the exclusive brokerage agreement by the Principal.

VI.

Obligations of the intermediary

When mediating the conclusion of a sale agreement, lease agreement, or rental agreement for real estate, the Intermediary is obliged to perform the following in particular:

1. endeavor to find and connect the Principal with a person for concluding the brokered transaction,
2. inform the Principal about the average market price of similar real estate,
3. obtain and inspect the documents proving ownership or other real rights on the subject real estate,
4. perform the necessary actions for presenting the real estate on the market, advertise the real estate in an appropriate manner and perform all other actions agreed upon in the real estate brokerage agreement that exceed the usual presentation, for which he has the right to special, pre-disclosed costs,
5. enable the inspection of real estate,
6. mediate in negotiations and strive to reach the conclusion of an agreement, if he has explicitly committed to it,
7. keep the Principal's personal data and keep, according to the Principal's written order, as a business secret, data on the real estate he is mediating for or in connection with that real estate or with the transaction for which he is mediating,
8. if the subject of the agreement is land, check the purpose of the subject land in accordance with the regulations on spatial planning relating to that land,
9. inform the Principal of all circumstances relevant to the intended transaction that are known to him or must be known to him,
10. inform the Principal about the provisions of the Anti-Money Laundering and Terrorist Financing Act (OG 108/17, 39/19).

After concluding the sale agreement, the Intermediary undertakes for the Principal – the buyer of the real estate, to perform the following:

1. in cooperation with the legal service provider, transfer ownership in the land registers;
2. register the Principal as a new service user with utility service providers;

VII.

Obligations of the Principal

By concluding the brokerage agreement with the Intermediary, the Principal undertakes the following obligations:

1. inform the Intermediary about all circumstances important for the performance of the brokerage and provide accurate data on the real estate, and if he possesses it, give the Intermediary a location, construction, or use permit for the real estate that is the subject of the agreement and give the Intermediary evidence of fulfillment of obligations towards the Third party,
2. give the Intermediary access to the documents proving his ownership of the real estate, or other real right on the real estate that is the subject of the agreement, and inform the Intermediary about all registered and unregistered burdens that exist on the real estate,
3. ensure the Intermediary and the interested Third party have the opportunity to view the real estate,
4. inform the Intermediary about all essential data on the desired real estate, which particularly includes a description of the real estate and the price,
5. pay the Fee to the Intermediary after concluding the legal transaction, where the conclusion of the legal transaction also includes the conclusion of a preliminary agreement,
6. compensate the Intermediary for the costs incurred during the brokerage that exceed the usual brokerage costs,
7. inform the Intermediary in writing about all changes related to the transaction for which he authorized the intermediary, especially about changes related to the ownership of the real estate.

The Principal is not obliged to enter into negotiations for concluding the brokered transaction with the Third party found by the Intermediary, nor to conclude a legal transaction. The Principal will be liable to the Intermediary for damages if he does not act in good faith and is obliged to compensate all costs incurred during the brokerage, which cannot be less than 1/3 nor more than the agreed Fee.

The Principal will be liable for damages if he acted fraudulently, if he concealed or provided inaccurate information essential for the brokerage business in order to complete the brokered transaction.

VIII.

Brokerage Fee

The amount of the brokerage fee is determined by the brokerage agreement.

The agreed brokerage fee includes the performance of all actions of the Intermediary listed in point VI of the General Terms.

In the case of performing actions not covered by point VI of the General Terms based on the Principal's request, the brokerage hourly rate is HRK 350.00 (EUR 46.45).

In the case of performing actions not covered by point VI of the General Terms based on the Principal's request, the Principal is obliged, in addition to the fee for the brokerage hourly rate, to compensate the Intermediary for the actual costs of performing those actions.

Value-added tax is calculated on all fee amounts.

If the concluded legal transaction includes the conclusion of a preliminary agreement by which the Principal and the Third party have committed to concluding the main agreement related to the real estate that is the subject of brokerage and which preliminary agreement stipulates the payment of a deposit and/or part of the agreed purchase price before concluding the main purchase agreement, the Principal undertakes to pay the brokerage fee to the Intermediary in two equal parts, of which the first is due on the day of payment of the deposit and/or part of the agreed purchase price, and the second on the day of concluding the main agreement, or on the day of expiry of the term specified by the preliminary agreement for concluding the main agreement.

If the concluded legal transaction includes the conclusion of a preliminary agreement by which the Principal and the Third party have committed to concluding the main agreement related to the real estate that is the subject of brokerage, but which does not stipulate the payment of a deposit and/or part of the agreed purchase price before concluding the main purchase agreement, the Principal undertakes to pay the brokerage fee to the Intermediary on the day of concluding the main agreement, or on the day of expiry of the term specified by the preliminary agreement for concluding the main agreement.

If the concluded legal transaction includes exclusively the conclusion of the main agreement related to the real estate that is the subject of brokerage and which agreement stipulates a one-time payment of the agreed purchase price, the Principal undertakes to pay the brokerage fee to the Intermediary on the day of concluding the purchase agreement.

The withdrawal of the Principal or the Third party with whom the Principal concluded a preliminary agreement related to the real estate that is the subject of brokerage, as well as the withdrawal of the Principal or the person with whom the Principal concluded an agreement related to the real estate that is the subject of brokerage from the fulfillment of the concluded agreement, does not affect the obligation of the Principal to pay the brokerage fee to the Intermediary in the amount and manner determined by this article and the concluded brokerage agreement.

The Principal is obliged to pay the Fee even when he concludes a legal transaction with a Third party pointed out to him by the Intermediary and with whom the Intermediary connected him, different from the one for which brokerage was performed, and which achieves the same purpose as the brokered transaction or whose subject matter is real estate that is the subject of brokerage.

It is considered that the Intermediary enabled the Principal to establish a connection with the Third party if he:

• directly took or referred the Principal to inspect the subject real estate,
• organized a meeting between the Principal and the Third contracting party for negotiating the conclusion of a legal transaction,
• informed the Principal of the name and surname, or company, telephone number, fax number, e-mail address of the Third party authorized to conclude a legal transaction, or informed him of the exact location of the sought real estate.

After the termination of the Agreement, the Intermediary has the right to the Fee within 12 months and in cases when the Principal concludes a legal transaction with the Third party that is a result of the Intermediary's actions before the termination of the brokerage agreement.

If the Principal withdraws during the conclusion of the brokered transaction (after the Intermediary has provided an acceptable offer), he is obliged to pay the Intermediary the amount of the agreed Fee.

The Intermediary is entitled to the Fee if the spouse, cohabiting partner, descendant, or parent of the Principal: or a company, institution, or other legal entity of which the Principal, his spouse or cohabiting partner, descendant, or parent is a founder or legal representative, or with whom he has a concluded employment contract or contract for services, concludes a brokered legal transaction with a person with whom the Intermediary connected the Principal.

IX.

Final provisions

For everything not explicitly determined by these General Terms of Business, the Real Estate Brokerage Act, the Obligations Act, and other legal regulations shall apply. The General Terms are applicable from December 1, 2021.

Palace Real Estate Ltd. represented by director Marko Triva