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General business terms

INTRODUCTORY NOTES

The use of the services of the company LUVA Villas d.o.o., Kozarčeve stube 8, 10000 Zagreb, Croatia, OIB: 25075330864 ("LUVA" or "we") and your interaction with us are subject to these general terms of business ("Terms"). The Terms are an integral part of each Brokerage Agreement, and the Principal confirms being familiar with the provisions of these Terms and fully accepting them.

LUVA pays special attention to preserving your privacy and protecting your personal data. More details on what, how, and why we process your personal data can be found in our Privacy and Cookies Notice, also available on our website.

It is advisable to carefully read all information on our website and check all details displayed, as this information forms the basis of your contract with us. When you contact us regarding the services we provide, you enter a legal relationship with our agency and are considered to accept all the general terms and conditions stated herein.

If there is any part of these terms with which you disagree, please do not use our services.

GENERAL PROVISIONS

The general terms of business for real estate brokers (hereinafter: General Terms) regulate the business relationship between LUVA Villas d.o.o., a real estate brokerage agency (hereinafter: Broker), and individuals or legal entities (hereinafter: Principal) entering into a written brokerage agreement with the Broker.

The General Terms are an integral part of the Brokerage Agreement concluded between the Broker and the Principal.

By entering into a Brokerage Agreement, the Principal confirms being aware of and agreeing to all provisions of the Broker’s General Terms, as well as in the case of engaging the Broker's agents.

By accessing any part of the website www.luvarealestates.com, you agree to all the provisions and conditions stated in the General Terms.

By entering into a Brokerage Agreement, the Principal confirms agreeing to the possibility of the Broker changing the General Terms, which will apply 30 days after their publication on the Broker's website, provided that the Principal does not notify the Broker in writing within that period that they terminate the Agreement.

Any amendments or additions that are contrary to these Terms will be valid only if the Broker has accepted them in writing.

Article 1

TERMINOLOGY USED IN THE GENERAL TERMS OF BUSINESS

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

  • Real Estate Broker - LUVA Villas d.o.o. is a company that meets the requirements for real estate brokerage as defined by the Real Estate Brokerage Act (hereinafter: Broker).
  • Real Estate Brokerage Agent is an individual registered in the Registry of real estate brokerage agents. The agent is employed by the Broker or collaborates with the Broker based on a business cooperation agreement (hereinafter: Agent).
  • Real estate brokerage involves the actions of a real estate broker that relate to connecting the Principal and a third party, as well as negotiating and preparing for the conclusion of legal transactions, especially in the case of buying, selling, exchanging, leasing, renting, etc.
  • Real Estate Brokerage Agreement is a written document by which the broker agrees to endeavor to find and connect the principal with a person for negotiation and conclusion of a specific legal transaction on the transfer or establishment of a specific right to real estate, and the principal agrees to pay a specified brokerage fee if that legal transaction is concluded.
  • Exclusive Brokerage Agreement is a written document by which the principal agrees not to engage any other broker for the brokered transaction. If, during the Exclusive Brokerage Agreement, the principal concludes a legal transaction through another broker, for which the exclusive broker was given a brokerage order, the principal agrees to pay the exclusive broker the agreed brokerage fee, as well as possible additional actual costs incurred during the brokerage for the specified brokered transaction. When concluding an Exclusive Brokerage Agreement, the broker agrees to specifically inform the principal about the meaning and legal consequences of this clause.
  • Brokerage Feeis the amount that the principal agrees to pay the broker for the service provided.
  • Real estate includes land parcels, together with everything permanently attached to the surface or below it, in accordance with the provisions of general property and other real rights regulations.
  • Respondent's Consent means any voluntary, specific, informed, and unambiguous expression of the respondent's wishes, in which the respondent, by statement or clear affirmative action, gives consent to the processing of personal data concerning them.
  • Principal is an individual or legal entity entering into a written brokerage agreement with the Real Estate Broker (seller, buyer, tenant, landlord, lessor, lessee, and other possible participants in real estate transactions - hereinafter: Principal).
  • Third Party is a person whom the Real Estate Broker seeks to connect with the Principal for negotiations on the conclusion of legal transactions related to a specific property, regardless of whether the Broker has a brokerage agreement with the third party (hereinafter: Third Party).

Article 2

PROTECTION OF COPYRIGHTS AND OTHER INTELLECTUAL PROPERTY RIGHTS

  • The rights related to the LUVA website include text, images, layout, databases, and all other (static and/or animated) materials, sounds, formats, software, names (including the domain), belonging to LUVA, the service provider's license, and/or advertisers. If you (as the Principal) feel that your copyright has been violated, it is your responsibility to take appropriate action. You acknowledge that LUVA does not assume responsibility or participate in any way in resolving such a case.
  • Modification, reproduction, distribution, or sale of any part of the website or software of this site is not allowed unless otherwise specified in an agreement between the site and the other party.
  • The user is free to use the content of the site for non-commercial use. Distribution of copies of these pages or making them available to third parties in any way, except for copying the content of the pages and browsing on a personal computer, and/or printing one copy, is not allowed.
  • The Principal agrees that LUVA may, without any further permission or consent, distribute advertisements published on the LUVA website on other partner websites with which LUVA collaborates.

Article 3

LIABILITY

LUVA makes maximum efforts to ensure that all advertisements on the LUVA website are complete and accurate. However, sometimes certain information is obtained from the property owner (Principal) without personal verification, and therefore LUVA cannot be held responsible for the content of published advertisements.

LUVA cannot be considered responsible to you or third parties for any damage, loss, or injury directly or indirectly resulting from your access and use of these pages or pages linked from LUVA pages, or from the information on these pages, or from actions taken or not taken in connection with the information on these pages, or from your use (or inability to use) any of these pages. Furthermore, LUVA cannot bear any responsibility towards you for any content displayed on third-party pages that may be occasionally accessible to you. Any such access cannot and will not be construed to imply a connection with LUVA or that LUVA endorses such pages.

Article 4

REAL ESTATE OFFERS

The Broker’s offer of real estate is based on information received in writing and/or verbally from property owners offering properties for sale, lease, or rent, as well as information contained in written and/or verbal instructions from the Principal.

The Principal is obligated to provide the Broker with complete and accurate information and valid and truthful documents related to the quality, legality, ownership, and other real rights related to the subject of the brokerage and bears full responsibility for the truth and accuracy of all information about the subject of brokerage, as well as personal data provided to the Broker related to the legal transaction for which the Broker is brokering.

The Principal acknowledges and accepts that all responsibility arising from or as a consequence of a breach of the provisions of the previous paragraph is solely borne by the Principal as the seller, lessor, or landlord.

The Principal acknowledges the possibility of errors in the description and price of the property and the possibility that the advertised property may already be sold, rented, or that the property owner has withdrawn from the sale, and for such cases, the Broker assumes no responsibility.

The Principal must keep the offers and notices confidential and may only transfer them to a third party with the written consent of the Broker.

If the recipient of the Broker's offer is already aware of the properties offered to them, they are obliged to inform the Broker in writing, by e-mail, fax, or registered mail, without delay, and no later than within 24 (twenty-four) hours; otherwise, they are obliged to fulfill all contractual obligations to the Broker in full.

Article 5

BROKER'S OBLIGATIONS

By the real estate brokerage agreement, the broker undertakes to perform, in particular, the following:

  • try to find and connect the Principal with a third person for the purpose of concluding a brokered transaction
  • inform the Principal about the average market price of a similar property
  • obtain and inspect documents proving ownership or other real rights to the property in question
  • perform necessary actions to present the property on the market, advertise the property appropriately, and perform all other actions agreed upon in the real estate mediation agreement that go beyond the usual presentation, for which the agent is entitled to separate, separately stated costs
  • allow inspection of the property
  • broker in negotiations and strive to conclude a contract
  • keep the Principal's personal data safe and, at the written request of the Principal, keep information about the property for which the broker is brokering or related to that property or the transaction for which the broker is brokering as a business secret
  • Inform the Principal about all circumstances relevant to the intended business that are known or must be known to the Broker.
  • in the case of a contract involving land, verify the purpose of the land in accordance with spatial planning regulations applicable to that land
  • conduct other necessary negotiations and preparatory actions for the conclusion of a legal transaction related to real estate brokerage

If the broker, in agreement with the Principal, performs other actions in connection with the transaction that is the subject of brokerage, the broker will separately contract these tasks as well as the type and amount of costs.

After the conclusion of the purchase agreement, the Broker undertakes for the Principal - the buyer of the property to perform the following:

  • in collaboration with the legal assistance service provider, carry out the transfer of ownership in the land register
  • in the case of commercial entities providing communal services, register the Principal as a new service user.

The Broker is not responsible for the non-performance of obligations by the Principal and Third party, which obligations are assumed by a legal transaction concluded between the Principal and the third party, and the subject of which legal transaction is the real estate for which the agent is mediating.

Article 6

CONNECTING WITH A THIRD PARTY/SUBJECT PROPERTY

The Broker is considered to have enabled the Principal to enter into a connection with a third party (individual or legal entity) with whom negotiations were conducted for the conclusion of a legal transaction, especially if he:

  • directly took or directed the Principal to inspect the subject property
  • organized a meeting between the Principal and the third party for negotiations on the conclusion of a legal transaction
  • communicated to the Principal the name/title, phone number, or email of the third party authorized to conclude the legal transaction or provided the exact location of the sought property
  • when the Principal received an offer or email from the Broker with information about the subject property and/or its owner or the third party or its affiliated company/another company or individuals authorized to conclude the legal transaction who expressed interest in concluding the legal transaction related to the mediation for the subject property
  • enabled the Principal to contact a third party in any other way that leaves no doubt about the identification of the authorized person for negotiations and/or the conclusion of a legal transaction.

If the Principal is already familiar with the properties offered to them or has already contacted the third party, they are obligated to inform the Broker in writing, by email, or registered mail without delay, and no later than within 24 (twenty-four) hours. Otherwise, it will be considered that the Broker has connected them with the subject property or the third party.

Article 7

PRINCIPAL'S OBLIGATIONS

By the real estate brokerage agreement, the Principal undertakes to perform, in particular, the following:

  • inform the agent of all circumstances relevant to the mediation and provide accurate information about the property; if they possess it, provide the agent with a copy of the location, construction, or usage permit for the property subject to the agreement and provide the agent with evidence of fulfilling obligations to a third party
  • provide the agent with proof of ownership of the property or other real right on the property subject to the agreement and alert the agent to all registered and unregistered encumbrances on the property
  • provide the agent with written consent from the other spouse or extramarital partner, certified by a notary public, in accordance with the Family Law
  • provide the agent with an energy certificate or create one if the property requires it according to the Construction Law when selling the property
  • ensure that the agent and a third party interested in concluding the mediated transaction have the opportunity to inspect the property
  • inform the agent of all essential information about the sought property, including a description and price
  • immediately inform the agent in case of a change in the asking price. If the principal does not inform the agent of a lower price published by other agencies, the agent is authorized to independently lower the price
  • after the conclusion of a preliminary contract and/or agreement, pay the agent a fee
  • in case of termination of the mediation agreement, compensate the agent for incurred costs when explicitly agreed
  • compensate the agent for costs incurred during mediation that exceed the usual mediation costs, which must be separately stated
  • inform the agent in writing of all changes related to the business for which the agent was authorized, especially changes related to ownership of the property.

The provisions of the preceding paragraph of this article apply mutatis mutandis to all concluded mediation agreements.

The principal is not obliged to enter into negotiations for the conclusion of a mediated transaction with a third party found by the agent or conclude a legal transaction.

The principal will be liable to the agent for damages if they did not act in good faith, and they must reimburse all costs incurred during mediation, which cannot be less than 1/3 nor more than the agreed brokerage fee for the mediated transaction.

When signing a real estate mediation agreement with the agent, the principal guarantees and confirms, under material and criminal responsibility, that they are the person they represent; otherwise, they are liable for all damage caused to the agent and/or any other person in the legal transaction that is the subject of the mediation agreement.

The Principal, when entering into a Real Estate Brokerage Agreement with the Broker, confirms that they have voluntarily provided the Broker with their personal information, including OIB (Personal Identification Number), for the purpose of participating in the real estate buying/selling/renting/leasing process or any other legal transaction related to real estate brokerage, and for the purpose of establishing unequivocal identification.

When concluding a real estate sale agreement with a third party that is the subject of the real estate mediation agreement, the principal undertakes to provide the agent with all necessary information and data that the agent is obliged to collect about the principal and the legal transaction under the Anti-Money Laundering and Counter-Terrorism Financing Act.

Article 8

REAL ESTATE BROKERAGE AGREEMENT

By the real estate brokerage agreement (hereinafter: Agreement), the agent undertakes to try to find and connect the Principal with a Third party for negotiations and the conclusion of a specific legal transaction regarding the transfer or establishment of a specific right to real estate and/or related to real estate, and the Principal undertakes to pay a specific brokerage fee (hereinafter: Fee) if that legal transaction is concluded.

These General Terms and Conditions are an integral part of the Agreement.

The Agreement is concluded in writing and for a specified period.

If the contracting parties do not agree on the term of the Agreement in the Agreement itself, the Agreement is concluded for a fixed period of 12 months from the date of conclusion of the Agreement.

The Agreement is automatically extended for an equal duration if neither contracting party informs the other party 30 days before the expiration of the term that they do not intend to extend the Agreement.

The Agreement can be extended multiple times by agreement of the parties for a period determined by agreement.

Article 9

SOLE AGENCY

By the brokerage agreement, the Principal may undertake not to engage any other agent for the brokered transaction (sole agency), and this obligation must be explicitly stipulated.

If, during the exclusive brokerage agreement, the Principal concludes a legal transaction through another broker, bypassing the exclusive broker who was given the mandate for brokerage, the Principal is obliged to pay the agreed Fee to the exclusive broker, as well as any additional actual costs incurred during the brokerage for the specified brokered transaction.

When entering into an exclusive brokerage agreement, the Broker is obliged to specifically alert the Principal to the meaning and legal consequences of the contractual clause in the preceding paragraph.

An exclusive brokerage agreement concluded for a specified period terminates upon the expiration of the agreed term if no agreement for which brokerage was provided is concluded within that period.

In the event of the termination of the exclusive brokerage agreement for the reason indicated in the preceding paragraph, the Principal is obliged to compensate the Broker for the incurred costs that were otherwise explicitly agreed to be separately paid by the Principal.

If, within 12 months after the termination of the concluded exclusive brokerage agreement, the Principal concludes a legal transaction that is a result of the Broker's actions before the termination of the exclusive brokerage agreement, the Principal is obligated to pay the full Fee to the Broker.

If the Principal terminates the exclusive brokerage agreement before the agreed term expires, the Principal undertakes to compensate the Broker for damages resulting from the termination.

For the case in the preceding paragraph, the amount of the damage compensation is determined at 3% (three percent) of the Asked Price of the property, as defined in the exclusive brokerage agreement. It is established that the obligation to compensate for damages becomes due on the day of termination of the exclusive brokerage agreement by the Principal.

Article 10

TERMINATION OF THE AGREEMENT

A brokerage agreement concluded for a specified period terminates upon the expiration of the agreed term if no agreement for which brokerage was provided is concluded within that period or by written termination by either of the contracting parties, with a notice period of 30 (thirty) days.

The Principal may terminate the agreement under the condition that the termination is not contrary to the principles of good faith and fairness and is not made with the intention of depriving the Broker or knowingly damaging their rights to compensation.

In the event of the termination of the brokerage agreement for the reason indicated in the first paragraph of this article, the Principal is obliged to compensate the Broker for the incurred costs that were explicitly agreed to be separately paid by the Principal.

If, within 12 months after the termination of the concluded brokerage agreement, the Principal concludes a legal transaction that is a result of the Broker's actions before the termination of the brokerage agreement, the Principal is obligated to pay the full Fee to the Broker.

Article 11

RESERVATION

Based on the Brokerage Agreement and a separate order, the Broker is authorized by the Principal or Third Party to take over the agreed amount of money as a reservation for the purchase, sale, lease, or rental of the real estate subject to mediation (hereinafter: Reservation).

By taking over the Reservation within the agreed Reservation period, the real estate subject to brokerage is no longer available for viewing by Third Parties, nor is it offered as part of the Agent's offer.

If the mediated legal transaction is not concluded within the Reservation period, the real estate becomes available for viewing by Third Parties again, and becomes part of the Broker's offer.

The Broker will handle the payment received for the Reservation in accordance with a separate order for taking over the reservation, explicitly determining, in case the brokered legal transaction is not concluded after the Reservation period, the portion of the Reservation amount that belongs to the Broker.

Article 12

BROKERAGE FEE AND COSTS

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

The agreed brokerage fee includes:

Performing all actions of the Broker listed in Article 5 of the General Terms, except for the costs of actions that are separately stated;

Costs of drafting preliminary contracts and contracts, excluding notary costs related to the certification of signatures on the contract, solemnization of preliminary contracts and contracts, and the drafting of notarial acts.

The agreed brokerage fee does not include:

  • Resolving property relations on the real estate subject to mediation.
  • Registering the brokered property in the land registry

In the case of performing actions not covered in Article 5 of the General Terms, and performed directly by the Broker at the request of the Principal, the brokerage hourly rate is 60.00 Euros.

In the case of performing actions not covered in Article 5 of the General Terms at the request of the Principal, the Principal is obligated to compensate the Agent for both the brokerage hourly rate and the actual costs incurred during the performance of those actions.

Value-added tax is applicable to all amounts of fees and costs.

In the event that the concluded legal transaction includes the signing of a preliminary contract by which the Principal and the Third Party have committed to concluding the main contract regarding the real estate subject to brokerage, and by which a down payment and/or part of the agreed purchase price is agreed upon before the conclusion of the main sales contract, the Principal undertakes to pay the brokerage fee to the Agent in two equal parts. The first part is due on the day of payment of the down payment and/or the first part of the agreed purchase price, and the second part is due on the day of signing the main contract or on the day of the expiration of the period determined by the preliminary contract for signing the main contract.

In the event that the concluded legal transaction includes the signing of a preliminary contract by which the Principal and the Third Party have committed to concluding the main contract regarding the real estate subject to mediation but does not stipulate the payment of a down payment and/or part of the agreed purchase price before the conclusion of the main sales contract, the Principal undertakes to pay the brokerage fee to the Broker on the day of signing the main contract or on the day of the expiration of the period determined by the preliminary contract for signing the main contract.

In the event that the concluded legal transaction includes exclusively the signing of the main contract regarding the real estate subject to brokerage, and by which a down payment and/or the payment of the agreed purchase price in installments is agreed upon, the Principal undertakes to pay the brokerage fee to the Agent in two equal parts. The first part is due on the day of payment of the down payment and/or the first installment of the agreed purchase price, and the second part is due on the day of payment of the agreed purchase price in full or on the day of the expiration of the period determined by the main contract for the payment of the agreed purchase price.

In the event that the concluded legal transaction includes exclusively the signing of the main contract regarding the real estate subject to brokerage, and by which a one-time payment of the agreed purchase price is agreed upon, the Principal undertakes to pay the brokerage fee to the Agent on the day of payment of the agreed purchase price in full or on the day of the expiration of the period determined by the main contract for the payment of the agreed purchase price.

The withdrawal of the Principal or the Third Party with whom the Principal has concluded a preliminary contract regarding the real estate subject to brokerage, as well as the withdrawal of the Principal or the person with whom the Principal has concluded a contract regarding the real estate subject to brokerage, from the fulfillment of the concluded contract, does not affect the obligation of the Principal to pay the brokerage fee to the Agent in the amount and manner determined by this article and the concluded brokerage agreement.

The Principal is obliged to pay the Fee even if, with the Third Party indicated by theBroker and with whom the Broker has connected the Principal, the Principal concludes a legal transaction different from the one for which brokerage was carried out, but a legal transaction that achieves the same purpose as the brokered transaction or if the subject of that legal transaction is the real estate subject to brokerage. In this case, the Fee is calculated at the agreed amount in relation to the total monetary value of the legal transaction thus concluded.

It is considered that the Broker enabled the Principal to connect with the Third Party if the Broker:

  • Directly took or directed the Principal to view the property in question.
  • Organized a meeting between the Principal and the Third Contracting Party for the purpose of negotiating the conclusion of a legal transaction.
  • Communicated to the Principal the name and surname, or the company, phone number, and email address of the Third Party authorized to conclude a legal transaction, or informed them of the exact location of the sought real estate.

The Principal is obliged to pay a contractual penalty to the Broker in the amount of 5% (five percent) of the agreed purchase price, or in the amount of 5 (five) monthly rents/leases that the Principal contracts with the person with whom the Broker has connected the Principal and with whom the Principal, after establishing the connection independently, excluding and/or bypassing the Broker, concludes a legal transaction for which the Broker mediated, and the Principal did not pay the agreed mediation fee to the Broker.

After the termination of the Brokerage Agreement, the Broker is entitled to compensation within 12 months, even if the Principal concludes a legal transaction with the Third Party that is the result of the Broker's actions before the termination of the brokerage agreement.

If the Principal withdraws during the conclusion of the brokered transaction (after the Broker has provided an acceptable offer or an offer equal to or higher than the requested price in the brokerage/exclusive brokerage agreement), the Principal is obliged to compensate the Broker for all damages, if they have not acted in good faith. The Principal must also reimburse the Broker for all costs incurred during the brokerage, which cannot be less than 1/3 nor more than the agreed Fee.

The Agent is entitled to the Fee if the spouse or extramarital partner, descendant, or parent of the Principal; or a company, institution, or other legal entity that the Principal, their spouse or extramarital partner, descendant, or parent is the founder or legal representative of or has a labor or work contract with, concludes the brokered legal transaction with the person with whom the Broker connected the Principal.

The Broker is entitled to the Fee if, after the Principal disposes of the real estate subject to brokerage in any way to one of the persons mentioned in the previous paragraph, that person concludes a brokered legal transaction or a transaction that achieves the same purpose as the brokered transaction with a Third Party or one of the persons from the previous paragraph thus associated with the Third Party.

If specifically agreed upon in the Brokerage Agreement, the Principal is obligated to reimburse the actual expenses incurred by the Broker in the event of termination of the Brokerage Agreement by cancellation or in any other case.

Unless otherwise agreed in the Brokerage Agreement, in the case when the Principal pays the Fee, all actual costs incurred by the Broker through brokerage are included in the same, according to the concluded Agreement.

Article 13

ANONYMOUS PRINCIPAL

When the agent performs brokerage tasks for a principal who wishes to remain unknown, the broker has no obligation to disclose the identity of the principal to the third party that wants to conclude a legal transaction with the principal until the conclusion of the legal transaction.

In the case of the previous paragraph, the Broker and the Third party will conclude a Confidentiality agreement.

Article 14

TRANSFER OF BUSINESS SHARES

All provisions of these General Terms are applied accordingly to situations where, through the brokerage of the Broker, a purchase or transfer of business shares of the Principal's legal entity to a Third Party occurs, or where the Principal acquires business shares of a legal entity that is the owner of the real estate subject to brokerage.

In the case of the previous paragraph of this article, the brokerage fee is calculated at the agreed percentage in relation to the price or fee agreed for the purchase or transfer of business shares.

Article 15

SUBMITTING OBJECTIONS

The Principal has the right to submit objections regarding the provision of services, objections to the quality of the provided Service, and objections due to a breach of the provisions of the brokerage agreement.

The principal submits objections exclusively in writing to the address Kozarčeva stube 8, Zagreb, or email: luva@luvarealestates.com, upon receipt of which an objection resolution procedure is initiated. The objection must contain facts and evidence on which it is based.

The Broker will attempt to resolve all disputes related to objections with principals as consumers amicably and out of court. The Broker is obliged to provide a written response to the Principal regarding the validity of the submitted objection from the previous paragraphs of these General Terms within a maximum of 15 days from the day of submitting the objection.

Article 16

FINAL PROVISIONS

All provisions of the General Terms apply accordingly to Brokerage Agreements for the sale or lease of real estate.

For everything not expressly determined by these General Terms, the Real Estate Brokerage Act and the Civil Obligations Act, and other applicable legal regulations apply.

The General Terms are effective from January 1, 2024.