The General Terms and Conditions

KORčŒULA PROJEKTI d.o.o.

Real Estate Agency, Žrnovo 187, Žrnovo

I. Meaning of the basic terms contained in The General Terms and Conditions

Certain terms in these General Terms and Conditions have the following meanings:

A real estate agent/agency is an authorized agent/agency that fulfills the conditions for performingreal estate brokerage, which refers to KORčŒULA PROJEKTI - Real Estate Agency (hereinafter: Agency).
A real estate agent is a natural person registered in the official real estate agents register (In Croatia: Imenik agenata posredovanja u prometu nekretnina) and as such employed by the real estate agency (hereinafter: Agent).
Real estate agency business refers to all actions of a real estate agent taken to connect, communicate and intermediate between the client and a third party, and to all negotiations and preparations for legal affairs necessary for certain real estate transactions, where the subject is a particular property, especially when purchasing, selling, replacing, leasing, etc.
A client is a natural or legal person who concludes a written mediation contract real estate Agent as a seller, buyer, leaseholder, lessor, lessee and other possible real estate agents business (hereinafter: Client).
A third party is the person whom the real estate Agent intends to associate with the Client in order to negotiate the conclusion of legal transactions for which the property is subject (hereinafter: Third Party).

II. Offer

The Agent's offer is based on the information provided by the owners of the property offered for sale, in written or verbally, or on the data received from the Client, in written or verbally.

The Agent retains the possibility of mistakes or previous sale or owner property withdrawal.

III. Real Estate Brokerage Agreement

The real estate brokerage agreement (hereinafter: Agreement) commits the Agent to connect Client and the Third Party for the purpose of negotiating and concluding a specific legal transaction on the transfer or establishment of a particular property right and the Client commits to pay a certain mediation fee (hereinafter: Fee) to the Agent after this legal transaction is made.

The Agreement is concluded in writing and at a specified time.

If the contracting parties do not agree on the deadlines of the Agreement, it will be considered that contract is valid for 12 months and may be extended by agreement of the parties several times.

IV. Termination of the Real Estate Brokerage Agreement

The real estate brokerage Agreement concluded for a specified period shall cease to expire upon specific date as it is stated in the Agreement, if the agreement for which it is mediated is not concluded within that period, or if agreement is canceled by any of the contracting parties.

The Contractor is obliged to compensate the Agent for any costs for which were explicitly contracted that will be paid by the Client.

V. Exclusively brokerage

The Client can commit, by the Agreement, not to engage any other Agency for the brokerage business (solely brokerage) and this obligation must be expressly contracted.

If during this exclusively brokerage agreement Client contracts another brokerage agreement with another agent, for the business that was given to the exclusively Agent by the order, Client is obliged to pay to the Agent the actual costs incurred during brokerage business. If the amount of the Fee is not agreed upon, the Client shall compensate the Agent for the actual costs incurred during the brokerage and this costs can not exceed the brokerage Fee.

When concluding an exclusively brokerage agreement, the Agent shall specifically warn the Client of the significance and legal consequences of such clause.

VI. Obligations of the Agent

The Agreement requires the Agent to carry out in particular the following:

to seek for and link with the Client the person for the purpose of concluding a brokerage job
to explain the average market price of similar real estate to the Client
to inspect the documents proving the ownership or other rights on the real estate and to alert the Client to:
- the obvious deficiencies and possible risks associated with the unregulated state and registry of the property
- the registered real rights or other third parties rights on the property
- the legal consequences of non-fulfillment of obligations to the third party
- deficiencies in construction and usage permission in accordance with a special law
- the circumstances of the obligation to apply pre-emptive rights and restrictions in legal transactions in accordance with special regulations
make the necessary actions for the presentation of the real estate on the market, advertise the property properly and perform all the other transactions agreed upon by the real estate brokerage agreement that exceeds the usual presentation, for which it has the right to special pre-stated costs
to enable to visit (inspection) the real estate
intermediate in the negotiations and strive to conclude the contract, if specifically committed to it
keep and protect the personal data of the Client and, upon the written order of the Client, keep and protect all information about real estate which is the subject of the Agreement, as a business secret
if the subject of the Agreement is land plot, check the purpose of the land in accordance with the regulations on spatial planning relating to the land
inform the Client of all the circumstances relevant to the intended business that he or she is familiar with or needs to be familiar with

VII. Obligation of the Client

Conclude brokerage agreement with the Agent and:

inform the Agent of all circumstances relevant to the brokerage and present accurate information on the real estate and, if he/she has, provide the Agent with the location, construction or usage permit for the property that is the object of the Agreement and provide the Agent with proof of fulfillment of the obligations to the Third Party,
give the Agent access to documents proving his ownership of the real estate, that is, another real right on the property that is the object of the Agreement, and to warn the Agent on all the registered and unlisted charges that exist on the property,
enable the Agent and the Third party interested in the conclusion of a Agreement the visit (inspection) of the real estate,
inform the Agent about all relevant information on the claimed property, which includes in particular the description of the property and the price,
after concluding a pre-contract, pay the Fee to the Agent,
to compensate the Agent for costs incurred during brokerage that exceed the usual brokerage costs,
notify the Agent, in writing, of any changes related to the business he/she has authorized the agent for, and, in particular, any changes related to ownership of the property.

The Client is not obligated to enter into negotiations with a Third Party to conclude a mediated business that Agent has found, nor to undertake a legal transaction. The Client shall be responsable for damages if he/she has not done so in good faith, and shall be pay for all costs incurred during intermediation, that shall not exceed the Fees.

The Client will be responsable for damages if he/she has acted fraudulently, if he/she has omitted or provided inaccurate information relevant to brokerage activities with aim to completing the brokerage business.

VIII. Brokerage fee

The amount of the Fee is determined by the Agreement and it can be up to 3% of the real estate purchase price, and, in the case of concluding a rent or lease agreement, of the agreed monthly rent or lease. The agreement fee covers the execution of all the actions taken by the Agent as it is stated in Paragraph VI of the General Terms and Conditions. In the case of activities not covered by this Paragraph, the price of the services of the Agent is 350 kunas per hour.

In the case of performing activities not covered by Paragraph VI of the General Terms and Conditions, and upon the request of the Client, Client must compensate the Agent all actual costs of carrying out these actions, beside brokerage fee.

On all fee amounts, VAT must be added.

The Agent has right on the whole Fee, at the moment brokerage business is concluded by the Agreement, and concluding of the brokerage business (a legal transaction) is also the conclusion of a pre-contract by which the Client and the Third Party obliged to conclude a master agreement on buying, selling, rent, lease, or other contract in relation to real estate that is the subject of brokerage business.

The Client must pay the fee also when the Third Party, to which the Agent connected him/her, concluded a legal transaction different from the one he/she provide brokerage, and by which the same purpose is achieving as by the brokerage business.

It is considered that the Agent has enabled the Client to engage with a Third Party if he/she:

directly took or instructed Client to visit the property that is the subject of this brokerage business,
gave the Client the name, telephone number, fax number, e-mail address of the Third Party authorized to conclude a legal transaction or gave the Client the exact location of the real estate.

After termination of the Agreement, the Client must pay the Fee to the Agent within a period not longer of the period of the Agreement and in cases when the Client concludes with a Third Party a legal transaction which is mostly the result of the Agent's activity before the termination of the Agreement.

If the Client quits during the conclusion of the brokerage business (after the Agent has submitted an acceptable bid) he/she shall pay the Agent the amount of the Agreement Fee. The Agent is entitled to a Fee if the spouse, or partner, descendant or the parent of the Client concludes a brokerage transaction with the person with whom the Agent has brought Client in contact.

IX. Final regulations

The cost of administrative or court fees incurred for the purpose of obtaining the necessary ownership and other documentation that is a prerequisite for placing real estate on the market, registration of the ownership in the land registers, the compilation of contracts and documents in the form of notarial documents shall be borne by the Client.

The General Terms and Conditions are an integral part of each Agreement between the Agent and the Client.

For all that is not explicitly stated under these General Terms and Conditions, the Law on Real Estate Brokerage and the Law on Mandatory Relationship and other legal regulations shall apply.

The General Terms and Conditions apply from November 28, 2011.

Žrnovo, November 28, 2011

Cocović Dario,

Executive