GENERAL TERMS AND CONDITIONS

Article 1 (First)

General Provisions

The General Terms and Conditions (hereinafter: the General Terms) of the real estate broker regulate the business relationship between the broker and the natural/legal person (hereinafter: the principal) who enters into a Real Estate Brokerage Agreement with the broker.

The General Terms are an integral part of the Real Estate Brokerage Agreement concluded between the broker and the principal.

By concluding the Brokerage Agreement, the principal confirms that they are familiar with and agree with all the provisions of the broker's General Terms and Conditions, as well as in the case of engaging the broker's agents.

By accessing any part of the website https://luvano.homes, you agree to all the provisions and conditions stated in the General Terms. If you do not agree with all the General Terms, do not use this site.

Article 2 (Second)

Definitions of Terms Contained in the General Terms and Conditions

Certain terms in the sense of the Real Estate Brokerage Act and the General Terms have the following meanings:

A real estate brokerage agent is a natural person registered in the Register of Real Estate Brokerage Agents (hereinafter: Agent).

Real estate is a plot of land, together with everything that is permanently connected to the land on the surface or below it, in accordance with the provisions of the general property and other real rights law.

Real estate brokerage activities are the actions of a real estate broker concerning the connection of the principal and a third person, as well as negotiations and preparations for concluding legal transactions concerning a particular real estate, especially in purchase, sale, exchange, lease, rent, etc.

The principal is a natural or legal person who enters into a written Real Estate Brokerage Agreement with the real estate broker (seller, buyer, lessee, lessor, tenant, etc.).

A third party is a person whom the real estate broker tries to connect with the principal for the purpose of negotiating and concluding legal transactions concerning a particular real estate.

The Real Estate Brokerage Agreement is a written document whereby the broker undertakes to try to find and bring into connection with the principal a person for the purpose of negotiating and concluding a certain legal transaction on the transfer or establishment of a certain right on real estate, and the principal undertakes to pay a certain brokerage fee if that legal transaction is concluded.

An Exclusive Real Estate Brokerage Agreement is a written document whereby the principal undertakes not to engage any other broker for the mediated transaction. If during the term of the Exclusive Brokerage Agreement the principal concludes a legal transaction through another broker for which the exclusive broker was given the brokerage order, the principal is obliged to pay the exclusive broker the agreed brokerage fee as well as possible additional actual costs incurred during the brokerage for the specified mediated transaction. When concluding an Exclusive Brokerage Agreement, the broker must specifically warn the principal of the meaning and legal consequences of this clause.

The brokerage fee is the amount that the principal undertakes to pay the broker for the brokerage service performed.

Article 3 (Third)

Real Estate Offer

The real estate offer of the broker is based on the data received in writing or orally and is subject to confirmation.

The broker disclaims liability for any possible errors in the real estate advertisements from the offer in case of untimely notification by the principal about the price reduction, possible withdrawal from sale/lease, realized sale/lease, as well as in case of withholding relevant information about the real estate from the offer by the principal.

The broker's real estate offer and/or notifications must be kept confidential and can only be forwarded to another natural and/or legal person with the broker's written permission.

If the principal is already familiar with the real estate that is the subject of the Brokerage Agreement, they are obliged to immediately notify the broker in writing, via email, or registered letter.

Article 4 (Fourth)

Broker's Obligations

Upon concluding the Real Estate Brokerage Agreement with the principal, the broker undertakes to perform the following with due care and diligence:

- try to find and bring into connection with the principal a person for the purpose of concluding the mediated transaction,

- inform the principal about the average market price of similar real estate,

- obtain and review the documents proving ownership or other real right on the subject real estate,

- perform the necessary actions for presenting the real estate on the market, advertise the real estate appropriately, and perform all other actions agreed upon in the Real Estate Brokerage Agreement that exceed the usual presentation, for which the broker is entitled to special, previously stated costs,

- enable the inspection of the real estate,

- mediate in negotiations and strive to conclude a pre-contract/contract, if specifically obligated,

- keep the principal's personal data confidential and, upon the principal's written order, keep confidential as a business secret the data on the real estate for which they are mediating or in connection with that real estate or the transaction for which they are mediating,

- if the subject of the contract is land, check the purpose of the subject land in accordance with the spatial planning regulations relating to that land,

- inform the principal about all circumstances important for the intended transaction that are known or must be known to them,

- perform other necessary negotiations and preparatory actions for concluding a legal transaction relating to real estate brokerage.

If the broker, in agreement with the principal, performs other actions related to the transaction that is the subject of brokerage, they will specifically agree on these tasks and the type and amount of costs.

The broker is not responsible for the non-fulfillment of obligations of the principal and the third party, the obligations assumed by the legal transaction concluded between the principal and the third party, and the subject of which the legal transaction is the real estate for which the broker mediated.

Article 5 (Fifth)

Connecting with a Third Party/Subject Real Estate

It is considered that the broker has enabled the principal to connect with a third person (natural or legal) with whom they negotiated to conclude a legal transaction, especially if they have:

- directly brought or referred the principal to inspect the subject real estate,

- organized a meeting between the principal and the third person to negotiate the conclusion of a legal transaction,

- communicated to the principal the name, telephone number, e-mail, or fax of the third person authorized to conclude a legal transaction or communicated the exact location of the requested real estate,

- when the principal has received from the broker an offer or email with data on the subject real estate and/or its owner, or the third person or its affiliated company/other company or the person authorized to conclude a legal transaction that has expressed interest in concluding a legal transaction relating to real estate brokerage,

- if the broker has enabled the principal to contact the third person in any other way that leaves no doubt about the identification of the authorized person for negotiating and/or concluding a legal transaction.

If the principal is already familiar with the real estate offered or has already contacted the third person, they are obliged to immediately notify the broker in writing, via email, or registered letter. Otherwise, it will be considered that the broker has connected them with the subject real estate or third person.

Article 6 (Sixth)

Principal's Obligations

By concluding the Real Estate Brokerage Agreement, the principal undertakes to perform the following tasks in particular:

- inform the broker about all circumstances important for performing the brokerage and provide accurate information about the real estate, and if in possession, give the broker the location, construction, or use permit for the real estate that is the subject of the Real Estate Brokerage Agreement and provide the broker with evidence of fulfilling obligations towards a third party,

- provide the broker with the documents proving their ownership of the real estate or other real right on the real estate that is the subject of the Real Estate Brokerage Agreement and inform the broker of all registered and unregistered burdens on the real estate,

- ensure the broker and the third person interested in concluding the mediated transaction the inspection of the real estate,

- inform the broker about all essential data on the requested real estate, which particularly includes the description of the real estate and the price,

- after concluding the mediated legal transaction, or the pre-contract obligating the conclusion of the mediated legal transaction, if the broker and the principal agreed that the right to payment of the brokerage fee is acquired already upon the conclusion of the pre-contract, pay the broker the brokerage fee unless otherwise agreed,

if explicitly agreed, reimburse the broker for costs incurred during the brokerage that exceed the usual brokerage costs,

inform the broker in writing about all changes related to the transaction for which the broker was authorized, particularly regarding changes related to ownership of the real estate.

The principal is not obliged to enter negotiations for concluding the mediated transaction with the third person found by the broker, nor to conclude a legal transaction.

The principal will be liable to the broker for damage if they have not acted in good faith and will be obliged to compensate all costs incurred during the brokerage, which cannot be less than 1/3 nor more than the agreed brokerage fee for the mediated transaction.

By signing the Real Estate Brokerage Agreement with the broker, the principal guarantees and confirms under material and criminal liability that they are the person they represent, otherwise, they will be liable for all damages caused to the broker and/or another person in the brokerage transaction, which is the subject of the Real Estate Brokerage Agreement.

Upon concluding the Real Estate Brokerage Agreement with the broker, the principal confirms that they have voluntarily made available to the broker their personal data, including the OIB, for the purpose of participating in the sale/lease/rental process or any other legal transaction relating to real estate brokerage and for the purpose of establishing clear identification.

The principal undertakes that upon concluding a sale contract with a third person who is the subject of the Real Estate Brokerage Agreement, they will provide the broker with all necessary information and data that the broker is obliged to collect about the principal and the legal transaction, as determined by the Anti-Money Laundering and Terrorism Financing Act.

Article 8 (Eighth)

Brokerage Fee Obligation

The brokerage fee that the principal pays for the brokerage service for the purchase and sale of real estate amounts to 3% of the purchase price unless otherwise agreed in the brokerage agreement between the Broker and the Principal. The stated brokerage fee percentage does not include the corresponding VAT amount as the LuVano Homes business is not in the VAT system.

For brokerage in the lease/rental process of real estate, the brokerage fee for the tenant amounts to one monthly rent/lease, and VAT is not calculated on the stated amount as LuVano Homes business is not in the VAT system.

Article 9 (Ninth)

Right to Brokerage Fee

The broker acquires the right to the brokerage fee upon the conclusion of the contract for which they mediated unless the broker and the principal have agreed that the right to payment of the fee is acquired upon the conclusion of the pre-contract and/or the first legal act between the principal and the third person.

In case of exceeding the deadline for paying the brokerage fee, statutory default interest is calculated.

The broker cannot request partial payment of the brokerage fee in advance, i.e., before the conclusion of the contract, pre-contract, and/or the first legal act.

The costs of additional services related to the transaction that is the subject of real estate brokerage may be charged by the broker at the actual cost if this is specifically agreed upon between the broker and the principal.

After the termination of the Real Estate Brokerage Agreement, the broker is entitled to the agreed brokerage fee within 12 (twelve) months if the Real Estate Brokerage Agreement does not provide otherwise and in cases when the principal concludes a legal transaction with a third person related to real estate brokerage and which is the result of the broker's actions before the termination of the Real Estate Brokerage Agreement.

The broker is entitled to the brokerage fee if the spouse, common-law partner, descendant, parent or relative in the direct or collateral line, a person related to the principal (e.g., kinship in any line with the aforementioned persons, authorized person, employee, employer, associate, etc.) concludes a contract/pre-contract or any other legal transaction related to real estate brokerage with the person whom the broker connected with the principal.

The provisions of Article 9 (Ninth), paragraph 6 (Sixth) also apply to legal entities established by the principal or any other person from the previous paragraph or if such persons perform management or other duties in the legal entity.

Article 10 (Tenth)

Brokerage Fee Exclusions

The brokerage fee does not include the following costs borne by the principal: translations by an authorized court interpreter of all documents relating to the subject of this contract, court fees for registration, pre-registration and registration, notary public fees for certification of signatures on documents, court fees or state stamps for obtaining the title deed, cadastral plan copy, identification certificate, obtaining a construction and/or use permit, as well as/or costs of obtaining other documentation from the competent court, state geodetic administration, bank, administrative departments of competent bodies of local and/or regional self-government units or all other bodies.

The principal is therefore obliged to promptly provide the broker with proof of payment of the stated costs in order for the mentioned documentation to be obtained in a timely manner. If the broker obtains the stated documentation for the principal, the principal is obliged to reimburse the material costs to the broker within 8 (eight) days from the date of such cost.

Article 11 (Eleventh)

Collaboration with Other Real Estate Brokers

The broker is ready to collaborate with other real estate brokers who respect fundamental ethical principles (which exclude providing false information about business operations to gain clients, denigrating other brokers in any way to gain clients, unrealistic property valuations to gain brokerage deals, and appearing in the media for personal promotion to the detriment of others).

Article 12 (Twelfth)

Real Estate Brokerage Agreement

The Real Estate Brokerage Agreement obliges the broker to try to find and bring into connection with the principal a person for the purpose of negotiating and concluding a certain legal transaction on the transfer or establishment of a certain right on real estate, and the principal undertakes to pay a certain brokerage fee if that legal transaction is concluded.

The Real Estate Brokerage Agreement is concluded in written form and for a definite period.

The Real Estate Brokerage Agreement concluded between the broker and the principal must particularly include data on the broker, the principal, the type and essential content of the transaction for which the broker is mediating, the amount of the brokerage fee, and possible additional costs incurred when the broker, in agreement with the principal, performs other services related to the transaction that is the subject of brokerage.

The Real Estate Brokerage Agreement may also include other data related to the transaction for which mediation is provided (e.g., the deadline and conditions for payment of the brokerage fee, data on liability insurance, conditions for insurance of payment of the brokerage fee, etc.).

Article 13 (Thirteenth)

Exclusive Brokerage

By the Real Estate Brokerage Agreement, the principal may undertake not to engage any other broker for the mediated transaction (exclusive brokerage), which obligation must be explicitly agreed upon.

If during the term of the Exclusive Brokerage Agreement the principal concludes a legal transaction through another broker for which the exclusive broker was given the brokerage order, the principal is obliged to pay the exclusive broker the agreed brokerage fee as well as possible additional actual costs incurred during the brokerage for the specified mediated transaction.

When concluding an Exclusive Brokerage Agreement, the broker must specifically warn the principal of the meaning and legal consequences of this clause.

Article 15 (Fifteenth)

Termination of the Brokerage Agreement

The Brokerage Agreement concluded for a definite period terminates upon the expiration of the period for which it was concluded if the contract for which brokerage was provided is not concluded within that period or by termination by any of the contracting parties, provided that such possibility is stipulated by the Real Estate Brokerage Agreement.

In the case of an agreed possibility of unilateral termination of the Real Estate Brokerage Agreement, if the notice period is not explicitly determined by the contract itself, the notice period is 30 (thirty) days from the receipt of the termination notice sent by registered mail with return receipt.

The termination procedure of the Real Estate Brokerage Agreement cannot occur in bad faith, thus with the intention of depriving the broker of the right to the brokerage fee or deliberately harming the broker.

If within 12 (twelve) months after the termination of the Real Estate Brokerage Agreement the principal concludes a legal transaction that is a result of the broker's actions before the termination of the Real Estate Brokerage Agreement, the principal is obliged to pay the broker the brokerage fee in full.

The principal is obliged to reimburse the broker for incurred costs that were explicitly agreed to be paid separately by the principal.

Article 16 (Sixteenth)

Diligence in Legal Transactions

The broker, in performing brokerage activities and other actions related to the transaction that is the subject of brokerage, must act with increased diligence, according to the rules of the profession and customs (diligence of a good expert).

Article 17 (Seventeenth)

Advertising Real Estate

The broker is obliged to disclose their company name when advertising real estate in the media, both in written and electronic form, in the broker's premises or other places where advertising related to real estate is allowed.

Article 18 (Eighteenth)

Liability Insurance

The real estate broker is obliged to insure and renew liability insurance with an insurer in the Republic of Croatia for damage that may be caused to the principal or third persons by performing brokerage.

For the damage that the broker may cause by performing brokerage, the minimum insured amount cannot be less than 200,000.00 HRK (two hundred thousand kunas) per one damage event, or 600,000.00 HRK (six hundred thousand kunas) for all claims in one insurance year.

The broker can also be insured with an insurer in a member state of the European Union and the European Economic Area.

Article 19 (Nineteenth)

Business Secrecy

The broker is obliged to keep as a business secret all information learned while performing brokerage activities, relating to the principal, the real estate for which they are mediating, or is related to that real estate or the transaction for which they are mediating or concluding based on special authorization.

If the broker breaches their obligation to keep business secrets, they are obliged to compensate the damaged persons for the harm they suffered due to the disclosure or non-maintenance of business secrets.

It is not considered a breach of the duty to keep business secrets if the broker discloses information to persons with whom they are trying to connect the principal, and it was necessary to fulfill the broker's obligation under the Real Estate Brokerage Agreement concluded with the principal.

Article 20 (Twentieth)

Final Provisions and Dispute Resolution

The relations between the broker and the principal arising from the Real Estate Brokerage Agreement, not regulated by these General Terms and Conditions or the Real Estate Brokerage Agreement, are subject to the provisions of the Real Estate Brokerage Act and the general provisions of the Obligations Act.

These General Terms come into force on the date of adoption and remain in force until the adoption of new/amended General Terms.

Any disputes between the broker and the principal will be resolved amicably, and if not possible, the competent court in Rijeka will have jurisdiction.