Terms of Business

Pursuant to the provisions of the Real Estate Brokerage Act (official gazette NN no. 107/2007 of 3 October 2007,) the company TS-Valković j.d.o.o. with the TOP-SHOP real estate agency as its brand, has adopted the following:

GENERAL TERMS OF BUSINESS

1. GENERAL PROVISIONS

The General Terms of Business shall regulate the business relations between the TOP-SHOP real estate agency (hereinafter: the Agency) and the principal (natural or legal person). By concluding the Brokerage Agreement, the principal confirms that they are familiar with and that they agree with the provisions of the present Terms of Business.

2. REAL PROPERTY QUOTATION
The real property quotation of the Agency shall be based on the information which the Agency has received orally or in writing and shall be subject to a confirmation. The Agency reserves the right to errors in the description and price of the real property, the possibility that the advertised real property has already been sold (or leased) or that the owner has given up the sale (or lease). The quotations and notices sent by the Agency shall be kept confidential by the recipient (principal) and may be disclosed to third parties only upon the written consent of the Agency. Should the recipient of the quotation be already familiar with the real property that the Agency has offered them, they shall notify the Agency thereof without delay.

3. OBLIGATIONS OF THE AGENCY (AGENT)
1. To conclude a Brokerage Agreement with the principal in writing;
2. To try to find a person and connect the principal with that person for the purpose of concluding the brokered transaction;
3. To inform the principal about the average market price of a similar real property and warn them about the shortcomings of the property;
4. To inspect the documents proving the ownership or any other property right on said real property and warn the principal of the following: obvious shortcomings and possible risks associated with an irregular land registry status of the real property; registered property rights or other rights of third parties to the real property; legal consequences of the non-fulfilment of obligations towards third parties; the deficiencies of the building or occupancy permit in accordance with special acts; the circumstances of the obligation of applying the pre-emption right and restrictions in legal transactions in accordance with special regulations;
5. To perform all necessary actions regarding the presentation of the real property on the market, to advertise the real property in a manner determined by the Agency, to enable the inspection of the real property;
6. To keep confidential all personal information of the principal, as well as the information on the real property for which they are acting as an agent or the information regarding that real property or the transaction for which they are acting as an agent, if so requested by the principal in writing;
7. To inform the principal of all the known circumstances significant for the intended transaction;
8. To participate in the negotiations as an agent and to strive to conclude the legal transaction;
9. To participate in concluding the legal transaction (the preliminary agreement and the agreement); as well as during real property handover;
10. If the scope of the agreement is a land plot, check the use of said land plot in accordance with the regulations on spatial planning that refer to said land plot;
11. It is considered that the Agent has established contact between the principal and another person (either natural or legal) regarding negotiations in order to conclude the brokered transaction, if they have enabled the principal to contact the other person with whom they have negotiated the conclusion of a legal transaction, and especially if:
- they have directly taken or directed the principal or a third party to visit and inspect the real property in question;
- they have organised a meeting between the principal and the other party to negotiate the conclusion of the legal transaction;
- they informed the principal about the name, phone number, fax number or e-mail of another person authorised for concluding the legal transaction or they have informed them about the exact location of the wanted real property.

4. OBLIGATIONS OF THE CLIENT (PRINCIPAL)
1. To conclude a Brokerage Agreement with the Agency in writing;
2. To inform the Agent of all the circumstances which are important for conducting the brokerage and to provide correct information about the real property and, if they own such documents, provide the agent with the location, building, and occupancy permit for the real property which is the scope of the agreement as well as the evidence on the fulfilment of obligations towards third parties;
3. To provide to the Agent the documents for inspection proving their ownership over the real property, i.e. other property right over the real property which is the scope of the agreement and to warn the Agent about all registered and unregistered liens existing for the real property;
4. To organise the visit to the real property and its inspection for the Agent and the third party interested in concluding the brokered transaction;
5. To inform the Agent of all important information regarding the wanted real property, which especially includes the description of the real property and its price;
6. After concluding the brokered legal transaction, i.e. a preliminary agreement binding the principal to conclude the brokered legal transaction, if the Agent and the principal have agreed that the right to receive the brokerage fee is already acquired at the conclusion of the preliminary agreement, the principal shall pay the Agent the brokerage fee unless otherwise agreed;
7. If this was explicitly agreed upon, to reimburse the Agent for the expenses incurred during brokerage that exceed the usual brokerage expenses;
8. To inform the Agent in writing of all changes regarding the transaction for which they have authorised the Agent, especially about the changes regarding the ownership over the real property;
9. The principal shall be liable for the damages if they have not acted in good faith, if they have acted fraudulently, if they have failed to provide or have provided inaccurate information relevant to the brokerage with the aim of completing the legal transaction, and shall reimburse all costs incurred during brokerage which may not be higher than the brokerage fee for the brokered business.

5. EXERCISING THE RIGHT TO A FEE
TOP-SHOP agency shall be entitled to a full brokerage fee at the moment of concluding the brokered transaction, i.e. after signing preliminary agreement (or the agreement if the preliminary agreement is not concluded) by which the Principal is bound to conclude the brokered legal transaction. The fee shall be paid to the Agency at the moment of signing the preliminary agreement (or the agreement if the preliminary agreement is not concluded) between the two parties. The amount of the brokerage fee for performed brokerage during the sale and purchase, exchange, lease and renting of real property shall be charged in accordance with the Brokerage Fee Price List of the Real Estate Business Association of the Croatian Chamber of Economy, which forms a constituent part of these General Terms of Business. The amount of the brokerage fee is stated in the Agency's price list.
The Agency may agree upon the right to the reimbursement of costs necessary for the execution of the order and request an advance payment of funds for certain expenses. The principal shall also pay the fee if they conclude a legal transaction different from the one which was brokered with the person with whom the Agency has connected them, with this transaction being of the same value as the legal transaction, i.e. achieving the same purpose as the brokered legal transaction. The Agency is entitled to a fee if the spouse, or an extramarital partner, descendant or the parent of the principal concludes the brokered legal transaction with the person with whom the Agency connected the principal.

6. AGREEMENT EXPIRATION
A brokerage agreement shall be concluded for a period of 12 months and shall cease to be valid with the expiration of the term for which it was concluded unless another brokerage agreement is concluded within that term, or with the termination of the agreement by either of the parties. The parties may terminate the real estate brokerage agreement before the expiration of the contracted term only for a particularly justified reason. The principal shall in that case compensate the Agency for all incurred costs. The agent and the principal agree to extend the agreement after the expiration of the contracted term for the same term, unless some of the parties terminates the agreement previously in writing. The notice period shall be 30 days. If, within the term not longer than the term for which this agreement is concluded after the termination of the agreement, the principal concludes a legal transaction, which is mainly the result of the Agent's activity before the termination of the brokerage agreement, the principal shall pay the Agent their fee in full, unless otherwise agreed in the agreement.
When the contract is terminated due to the expiration of its term, the principal shall reimburse the Agent for all incurred costs for which it was expressly agreed that the principal shall pay for them separately.

7. COLLABORATION WITH OTHER AGENCIES
The Agency is willing to collaborate with other brokerage agencies that follow the basic ethical principles (which exclude the misrepresentation of business information for the purpose obtaining new jobs and clients, vilification of other agencies in any way for the purpose of obtaining jobs and clients, unrealistic estimates of real properties in order to obtain brokerage jobs and exclude other agencies from the market, contacting the information media with the intent of personal promotion at the expense of other agencies). The mutual collaboration of the agencies shall be based on the Code of Business Ethics for Agents – members of the Croatian Real Estate Exchange.

8. GENERAL PROVISIONS AND DISPUTE RESOLUTION
The relations between the principal and the Agency arising from the Brokerage Agreement which are not defined by these General Terms of Business or the Agreement shall be governed by the provisions of the Real Estate Brokerage Act and the Civil Obligations Act. All possible disputes shall be resolved at the Municipal Civil Court in Zagreb.

TS-Valković j.d.o.o.
TOP-SHOP real estate agency
Sanja Valković, director