General terms and conditions for real estate brokerage services

INTRODUCTORY PROVISIONS

Article 1.
These General Terms and Conditions (hereafter referred to as the "Terms") govern the business relationship between ALPHA LUXE GROUP doo (hereafter referred to as the "Intermediary") and a natural or legal person (hereafter referred to as the "Client") who enters into a written mediation agreement with the Intermediary. The Terms are integral to the mediation agreement between the Intermediary and the Client. The Client acknowledges and agrees to these Terms by completing the mediation agreement in full.

CONCEPTS AND THEIR MEANING

Article 2

  1. The Real Estate Broker or Broker is ALPHA LUXE GROUP d.o.o., a limited liability company located at Mate Vlašića 17, 52440 Poreč, Croatia, which meets the conditions for real estate brokerage as prescribed by the Real Estate Brokerage Act (hereinafter referred to as the "Mediator").
  2. A real estate brokerage agent is a natural person who is registered in the Directory of real estate brokerage agents and is employed by the Broker or is employed by a legal entity that has a cooperation agreement with the Broker or has a personal cooperation agreement with the Mediator (hereinafter referred to as the "Agent").
  3. Real estate brokerage involves the actions of real estate brokers in connecting the principal and a third party, as well as negotiating and preparing for the conclusion of legal transactions related to a particular real estate, especially those related to buying, selling, exchanging, renting, leasing, etc.
  4. The Client is a natural or legal person who enters into a written brokerage agreement with a Real Estate Agent.
  5. A third party is any person whom the Real Estate Broker seeks to connect with the Client to negotiate the conclusion of legal transactions related to a particular real estate, regardless of whether the Broker also has a brokerage agreement with the Third Party (hereinafter referred to as the "Third Party").
  6. Real estate refers to a part of the land surface and everything permanently connected to the land on or below the surface, as determined by general regulation on ownership and other fundamental rights.
  7. The brokerage fee is the amount the principal must pay the Broker for broker services.

OFFER

Article 3

The Mediator's offer is based on the information received in writing and orally by the Client. The client should be aware of the possibility of errors in the property's description and price and the possibility that the advertised property has already been sold, rented, or withdrawn from the sale by the property owner.

The Broker is not responsible for errors in the property's description or price or any issues related to the property owner's withdrawal from the transaction. The offers and notices should be kept confidential by the Client and only disclosed to third parties with the Intermediary's written approval.

If the recipient of the Mediator's offer is already familiar with the property offered, they must inform the Broker immediately in writing by email or registered mail.

REAL ESTATE INTERMEDIATION AGREEMENT

Article 4

The Real Estate Intermediation Agreement (hereafter: Agreement) refers to the transfer or establishment of specific rights to real estate and/or assets connected to real estate. The Broker, as the intermediary, is responsible for finding and liaising with third-party principals to negotiate and conclude the legal transaction on behalf of the Client. The Client must pay the Broker a brokerage fee (hereafter: Fee) if the legal transaction is completed. This includes the conclusion of a pre-agreement by which the contracting parties agree to enter into a central contract. The agreement is made in writing for a specific period.

If the contracting parties have differing views on the agreement term, the Agreement terminates after 12 months from the agreement's date and may be extended several times by mutual agreement.

EXCLUSIVE MEDIATION - EXCLUSIVE AGREEMENT

Article 5
The Exclusive Mediation Agreement obliges the Client not to hire any other intermediary for the mediated work. Suppose the Client concludes a legal transaction outside the Intermediary during the Exclusive Mediation Agreement, for which the Intermediary was given a mediation order. In that case, the Client must pay the Intermediary a Mediation Fee and any additional costs incurred during mediation. The Mediator must inform the Client of the legal consequences of the exclusivity-exclusivity clause before concluding the exclusive mediation contract. A contract for sole mediation concluded for a certain period terminates when the contract for which it was mediated is completed or when the agreed period expires. If the Exclusive Mediation Agreement is terminated for reasons specified in the previous paragraph, the Client must reimburse the Broker for the separately agreed costs incurred. Suppose the Client concludes a legal transaction within 12 months after the Exclusive Mediation Agreement due to the Intermediary's actions. In that case, the Client must pay the Intermediary fee in full unless otherwise agreed.

TERMINATION OF AGENCY AGREEMENT

Article 6
A mediation contract concluded for a definite period will end upon the expiration of the agreed-upon term if the agreement that was the subject of the mediation was not completed within that period or if either party terminates the contract by the provisions of the mediation agreement.

If the Client is required to pay for costs incurred by the Broker and this was explicitly agreed upon, then the Client must reimburse the Broker for these costs.

The ordering party may cancel the mediation if the revocation is not contrary to the principle of good faith. The order cancellation procedure should not be used to deprive the intermediary of compensation or knowingly damage their rights.

Suppose during the term of the mediation agreement or within 12 months of its termination; the Client enters into a legal transaction with a Third Party that was introduced to them by the Mediator or another Mediator. In that case, the Client will be considered to have acted against the principle of good faith and must settle the Mediation Fee.

OBLIGATIONS OF THE INTERMEDIARY

Article 7

In mediating for the conclusion of a real estate sale, lease, or rental agreement, the intermediary is obligated to perform the following, in particular: provide documentation proving ownership or other absolute rights of the real estate in question, perform necessary actions to present the real estate on the market, appropriately advertise the real estate, and

perform all other activities agreed upon in the brokerage agreement that exceeds the usual presentation. The intermediary has the right to special, pre-determined costs. They must enable the inspection of the real estate and mediate in negotiations to seek to conclude a contract related explicitly to the real estate they are negotiating, in a relationship with that real estate, or with the business they are mediating for. If the contract's subject is land, they must check the purpose of the land by the regulations on spatial planning relating to that land. They must inform the Client of all relevant circumstances known to them, or that they should know, and familiarize the Client with the provisions of the Act on the Prevention of Money Laundering and Terrorist Financing (OG 108/17, 39/19).

After concluding the contract of sale and with the Client of the acquirer of real estate, if the same express interest and without the right to further compensation, the Broker undertakes to perform one or more actions as follows:

  1. in cooperation with legal aid providers;
  2. in the case of companies providing utility services, register the Client as a new user of services.

OBLIGATIONS OF THE CLIENT

Article 8
By concluding an Intermediation Agreement with the Intermediary, the Client undertakes the following obligations: provide evidence of fulfilling commitments to third parties and register any unregistered encumbrances on the real estate that is the subject of the contract, provide the Broker with an energy certificate for the real estate, inform the Broker about whether the real estate represents the marital property of the Client and their spouse/extramarital partner, provide the Broker and a third party interested in concluding the brokered deal with all relevant information about the requested property, which includes the description of the property and the price. The Client must inform the Broker in writing about all changes related to the business for which they have authorized the mediator, especially those related to real estate ownership. Simultaneously with the conclusion of the legal transaction, the Client must pay the mediation costs.

The Client is not obliged to enter negotiations for concluding a brokerage deal with a Third Party found by the broker or to enter into a legal contract. However, the Client would be liable for damages if they did not act in good faith and must reimburse all costs incurred during the mediation, which charges may not be less than 1/3 of the agreed fee but not more significant than the agreed fee. The Client will be liable for damages if they acted fraudulently and failed to provide or provide inaccurate information relevant to the brokerage business to complete the brokerage business. The damage will be calculated by the costs incurred by the Intermediary in the said business, which will amount to at least 1/2 of the agreed fee.

INTERMEDIARY FEE

Article 9
The agreement determines the brokerage fee amount, which can be either a percentage of the real estate purchase price or a fixed amount. In the case of a lease or rental agreement, the fee is based on the monthly rent or lease amount, except for leases longer than 60 months (5 years), where the fee is at least 150% of the monthly rent or lease amount.

The agreed brokerage fee includes all actions in Article 7 of the General Terms and Conditions. However, for activities not covered by Article 7 but performed at the Client's request, the hourly brokerage rate is HRK 50 € (in words: fifty euros).

If the Intermediary performs additional activities at the Client's request not covered by Article 7, the Client must reimburse the Intermediary for the brokerage hour and the expenses incurred. The due date for the intermediary hourly rate and reimbursement of costs is 15 days from their occurrence.

Suppose the legal transaction includes a preliminary contract where the Client and Third Party agree to complete the main contract for the real estate, including down payment and part of the purchase price. In that case, the brokerage fee is due in two equal parts: the first on the day of the down payment and part of the agreed purchase price, and the second on the day of concluding the main contract.

Suppose the legal transaction includes a preliminary contract without a down payment or agreed purchase price. In that case, the brokerage fee is due on the day of concluding the main contract or on the day of expiration of the deadline specified in the pre-contract for concluding the main contract.

If the Client or Third Party withdraws from the mediated transaction, they must still pay the mediation fee as determined by this Article and the concluded mediation agreement.

The Client must also pay the Fee when they conclude a legal transaction with a Third Party brought into contact by the Intermediary and which achieves the same purpose as the mediated transaction.

Suppose the Client concludes a legal transaction other than the mediated one, which achieves the same purpose or concerns the real estate subject to mediation. In that case, they must pay the Fee as per the General Terms and Conditions price list.

The Intermediary is considered to have enabled the Client to contact the Third Party if they directly showed the Client the real estate, arranged a meeting between the Client and the Third Party, provided the Third Party's email address, or informed the Client of the location of the real estate.

The Intermediary is entitled to compensation within 12 months from the termination of the Contract if the Client concludes a legal transaction with a Third Party mainly due to the Intermediary's actions before termination.

If the Client withdraws during the conclusion of the mediated transaction after an acceptable offer has been submitted, they must pay the agreed Fee amount.

The Client is also required to pay the Fee if the brokered legal transaction contract enters with any natural or legal person related to marriage, extramarital or family, membership, or bodies management, or in any other way with a third party, regardless of whether that person participated in the negotiations.

FINAL PROVISIONS

Article 10
This agreement is subject to the Act on Real Estate Brokerage, the Civil Obligations Act, and other applicable legal regulations for matters not explicitly stated in this agreement. These General Terms and Conditions took effect on January 1, 2020.

Any modifications or additions that conflict with these Terms and Conditions are valid only if the Mediator accepts them in writing. In the case of an individual agreement with the principle that differs from the provisions of this agreement, the requirements of the separate agreement shall apply.

ALPHA LUXE GROUP d.o.o., represented by Robert Budimir, CEO.

PRICE LIST OF REAL ESTATE BROKERAGE FEES

I. PURCHASE AND SALE: Commission is calculated as a percentage of the total purchase or sale price, with the highest commission at 6% and the lowest at 4%.

II. SALE: The commission for mediation in the sale of real estate (charged from the seller) is 2-4%, but at least 1,000.00 euros.

III. PURCHASE: The commission for mediation when buying real estate (charged from the buyer) is 2-3%, but at least 1,000.00 euros.

IV. EXCHANGE: When exchanging real estate, a commission of 2-3% is charged from each party involved, calculated from the value of the real estate acquired by each party.

V. LEASE AND RENT: The commission is charged as a percentage of the rent and paid by both parties.

For renting and leasing, the commission is charged from the landlord and the tenant, and the percentage is based on the monthly rent:

  • 100% minimum for rentals or leases up to 11 months
  • 100% for rentals or leases between 12 and 59 months
  • 150% minimum for rentals or leases of 60 months (5 years) or more

The value-added tax applies to all fees.

Company Name: ALPHA LUXE GROUP d.o.o. za usluge

Headquarters: Mate Vlašića 17, Poreč

Registered at the Commercial Court in Pazin, share capital HRK 20,000.00, paid in full.

MBS: 130092679, OIB: 69925939724

Transaction accounts: IBAN HR27 2340 0091 1110 03017, opened with Privredna Banka Zagreb dd, BIC/SWIFT: PBZGHR2X.

Management Board Members: Robert Budimir, Director (represents the Company independently and individually).

These prices are subject to the Act on Real Estate Brokerage and other applicable legal regulations.