Terms and conditions of business for estate agents in Croatia
All estate agents should offer buyers and sellers terms and conditions to sign prior to engaging in any business. Estate Agents in Croatia act as brokers, i.e. mediators between two parties, and therefore, both parties they mediate for are charged a fee. Our agency commission is split 50:50; for property purchases, it is 3% plus VAT (currently 25%). More detailed Terms and Conditions are available on request.
The agency commission if you are selling a property or land is also 3% of the purchase price, plus VAT. This includes, but is not limited to, marketing on the Internet and in paper editions of various publications, creating property sheet details for each property on request, and all other services as required by the regulator. Detailed Terms and Conditions are available on request.
Balustrade Estates was the first estate agency on the Island of Hvar to become regulated under the terms set by the Croatian Ministry of Small Businesses. We are accredited to deal with all the legal requirements for property transactions. We are licensed by the Croatian Chamber of Economy, licence number number 23/09. This licence ensures that our business is conducted legally and your interests are fully protected. We are committed to maintaining the highest professional standards at all times, providing you with a service you can trust.
1. GENERAL PROVISIONS
These Terms of Business govern the relationship between the real estate agency Balustrade Estates (Balustrade d.o.o.) and the principal (natural or legal person).
By signing the Brokerage Agreement, the principal confirms that they are familiar with and accept the provisions of these Terms of Business.
2. PROPERTY LISTINGS
•Property listings are based on information received by the agency in writing or verbally and are subject to confirmation. The agency reserves the right to errors in property descriptions and prices, and the possibility that the property may already be sold (or rented) or withdrawn from the market by the owner.
•Listings and notifications received from the agency must be treated as confidential business information and may only be shared with third parties with the agency’s written permission.
•If the recipient is already familiar with a property offered by the agency, they must inform the agency without delay.
3. OBLIGATIONS OF THE AGENCY DURING BROKERAGE IN PROPERTY SALES, PURCHASES, LEASES, AND RENTALS
The agency undertakes to:
1.Conclude a written Brokerage Agreement with the principal;
2.Endeavour to find and connect the principal with a third party for the purpose of concluding the intended transaction;
3.Inform the principal of the average market price for similar properties;
4.Review documents proving ownership or other property rights and warn the principal about:
•obvious defects and risks related to unsettled land registry status;
•registered rights or third-party claims;
•legal consequences of unfulfilled obligations to third parties;
•missing construction or occupancy permits;
•pre-emption rights or legal restrictions.
5.If the subject of the agreement is land, verify the intended use according to spatial planning regulations;
6.Take necessary steps to market and present the property;
7.Enable property viewings;
8.Protect the personal data of the principal and, upon written request, treat all details of the property and transaction as confidential;
9.Notify the principal of any relevant circumstances known to the agency;
10.Mediate in negotiations and aim to bring about the legal transaction;
11.Attend the handover of the property;
12.Provide financial advice and assist with mortgage arrangements, including recommending a suitable bank and tracking the loan process through to completion.
The agency is considered to have connected the principal with a third party if it:
•Directly escorted or referred the principal or third party to view the property;
•Organised a meeting between the principal and the other party for negotiation;
•Provided contact details (name, phone, email) of the relevant person or exact location of the property.
4. OBLIGATIONS OF THE PRINCIPAL
The principal agrees to:
1.Sign a written Brokerage Agreement with the agency;
2.Inform the agency of all relevant facts for the brokerage and provide accurate details of the property, including any building or use permits and third-party obligations, if available;
3.Provide documents proving ownership or other property rights and disclose any encumbrances;
4.Allow the agency and interested third parties to view the property;
5.Provide all relevant information about the property, especially description and asking price;
6.Pay the agreed brokerage fee upon signing a pre-contract or contract, unless otherwise agreed;
7.Reimburse the agency for additional costs beyond standard brokerage expenses if explicitly agreed;
8.Notify the agency in writing of any changes regarding the property or the transaction;
9.Be liable for damages if acting in bad faith, fraudulently, or by withholding or misrepresenting essential information, and compensate the agency for all expenses incurred, up to the amount of the agreed fee.
5. COMMISSION ENTITLEMENT
The agency earns its full fee when a contract or pre-contract is signed by the principal with a party introduced by the agency.
•The commission is due upon signature of the pre-contract, contract, or other legally binding document, once the first payment is made under that agreement.
•Commission rates are defined in the Brokerage Agreement.
•The agency may contract for reimbursement of necessary expenses and request advance payments to cover certain outlays.
•The principal owes the commission even if the concluded transaction differs from the one originally intended, provided it is of equal value or achieves the same purpose.
•The commission is also owed if the principal’s spouse, partner, descendant, or parent enters into a transaction with a party introduced by the agency.
6. TERMINATION OF AGREEMENT
The Brokerage Agreement is valid for the term specified therein and ends upon expiry of that term unless the intended contract is concluded or either party terminates it earlier.
•Either party may withdraw from the agreement before its expiry for justified reasons. In such a case, the principal must reimburse the agency’s incurred costs.
•If the principal concludes a transaction during the term or within a period not exceeding the original term after expiry, and the transaction is primarily due to the agency’s prior efforts, the full fee is still owed—unless agreed otherwise.
•If the agreement ends by expiry, and reimbursement of certain costs was explicitly agreed, those costs remain payable.
•The principal must inform the agency in writing or verbally if the property is no longer for sale.
7. COOPERATION WITH OTHER AGENCIES
•The agency is open to collaboration with other real estate agencies that adhere to basic ethical principles. This excludes spreading false information, disparaging competitors, giving unrealistic property valuations, or using unfair promotional practices.
•Cooperation is based on the Code of Ethics of the Real Estate Exchange Members’ Association.
8. GENERAL PROVISIONS AND DISPUTE RESOLUTION
•In accordance with Article 8 of the Consumer Protection Act, a client dissatisfied with the agency’s service may file a written complaint to:
Balustrade d.o.o., Kroz Burak 25, Hvar or email: contact@balustrade-estates.net
•Any matters not regulated by these Terms or the Brokerage Agreement shall be governed by the Real Estate Brokerage Act and the Obligations Act.
•The competent court for any disputes is the Municipal Court in Split, Stalna služba Stari Grad.
These Terms of Business are regulated under Article 18 of the Real Estate Brokerage Act (NN 107/07, 144/12, 14/14, 32/19), effective as of 1 April 2019.
