Pursuant to the provisions of the Real Estate Brokerage Act, Document Class: 001-01/07-01/128, Reg :001-01/07, of November 2, 2007, the Agency Adriatica d.o.o. (hereinafter the agency) hereby issues the following:

GENERAL TERMS AND CONDITIONS

General terms and conditions regulate the business relationship between the Agency as an intermediary and the client (person or entity).

By entering the Mediation Contract the customer confirms that he is familiar with and agrees with the provisions of the Agency's General terms and conditions.

1. Offer

The Agency offer is based on information received in writing and verbally. We hereby declare the possibility of mistakes, prior sale or property owner's cancellation. We shall be held accountable for inaccurate information in the event of intentional or extremely reckless behavior on our part. Our offers and notifications shall be kept confidential by the client and transferred to a third party only after obtaining our written permission for such procedure.

2. Agency Duties

1. conclude a mediation contract with a client (standard or exclusive)
2. try to find a third party and bring him into contact with the client in order to conclude the mediation work
3. estimate the market value of the property and show it to the client
4. warn the client of any shortcomings on the property and with the state of the market
5. check the documentation necessary for the validity of mediation work and submit the same to the client
6. inform the client of all the legal, tax and other obligations arising from legal transactions with respect to the property in question
7. arrange the real estate market presentation, advertise the property in the manner specified by the agency
8. provide real estate inspection, organize and manage the same
9. treat the client's personal information and other data provided as a trade secret
10. inform the client of any circumstances relevant for the intended transaction as familiar to the Agency
11. mediate in the negotiations and try to reach the conclusion of the legal transaction
12. attend the conclusion of the legal transaction (preliminary and contract)
13. mediate the real estate handover
14. submit the necessary documents with the tax authorities and the land department of the competent court on behalf of the client

SIt is considered that the agency brought the client in contact with a third person (natural or legal) with whom he negotiated closing a transaction, especially if the agency:

• immediately took or advised the client to inspect the real estate
• organized a meeting between the client and a third party for the purpose of contract negotiation
• provided the client with the name, phone number, fax number, e-mail of a third person authorized to enter into a legal transaction or gave him the exact location of the property

3. Client's duties

1. conclude a mediation contract with the agency (standard or exclusive)
2. give the agency the right to inspect all the documents confirming the ownership of a property or right to property that is the subject of intermediary action
3. notify the agency of all the relevant data, in particular a description of the property and the price
4. provide the agency and the person interested in concluding the intermediary action with the possibility to inspect the real estate accompanied by an intermediary
5. immediately after the conclusion of the mediation work, i.e. the preliminary contract, pay the agreed fee (commission) to the agency
6. compensate the agency for the expenses made during the mediation exceeding the usual costs of mediation
7. notify the agency in writing of any changes related to the action for which the agency is authorized, in particular of the changes connected to the property ownership

The Client is liable for damages if he has acted fraudulently, withheld or gave incorrect information relevant to the tasks of mediation to conclude the legal work. The Client is liable for damages in the event of intentional or extremely reckless behavior on his part, towards the agency or third persons sent by the agency. In this case, the parties agree that the client shall pay for the expenses made during the mediation, which cannot exceed the brokerage fee (commission) for the mediation.

4. Exercising the right to compensation

The agency is entitled to compensation in full at the time of the conclusion of the mediated business (signing of the preliminary contract) that concludes the client's mediated legal business. The fee is paid to the agency simultaneously or immediately after the conclusion of the legal work for which the agency was engaged, i.e. following the two parties' signature on the preliminary contract.
If the client withdraws during the conclusion of the mediation work, he is required to pay the real cost in terms of time spent, advertising and other costs, according to the mediation rate.
The client shall also pay a fee when concluding a legal transaction with a person introduced to him by the agency even in case the transaction is not connected to the original legal transaction the agency was hired to perform, and which is of the same value as the legal work, i.e. which results in the same purpose as the brokered legal transaction.
The Agency shall be entitled to compensation if the client's spouse or common-law spouse, descendant or parent concludes an agreement with a person introduced by the agency.
The fee includes the usual costs of mediation, except those specifically contracted.
The Agency has the right to advance brokerage fees only if so agreed upon.
The Agency shall be entitled to compensation even if it is not exactly stated in the contract on mediation. The amount of compensation is determined by the intermediary rates.

5. Fee sums

The following percentages are paid as mediation fee and are VAT free.

5.1. Purchase

Intermediary fee is 2-4% + VAT of the achieved price of the property (defined at the contract on mediation signing). In cases of exclusive contracts, the fee is charged pursuant to the stipulations therein.

5.2. Sale

Intermediary fee for the agreed value of the property (classic contract) 2-4% + VAT of the realized real estate price (defined at the contract on mediation signing). In cases of exclusive contracts, the fee is charged pursuant to the stipulations therein.

5.3. Lease

In case of lease contracts (contracted lease for the period up to 5 years), the fee will be charged 100% of the monthly rent. For contracts longer than 5 years, the fee will be charged 150% of the monthly rent. For added value (price increase, special conditions demanded by the client, additional services, etc.), the fee will be charged 150% of the monthly rent. In cases of exclusive contracts, the fee is charged pursuant to the stipulations therein.

5.4. Mediation hourly rate

The amount of hourly rate with associated costs (time spent, advertising and other expenses related to the mediation) is 300,00 HRK.

5.5 Counseling (without field work)

• we do not offer counseling services by telephone or e-mail
• personal contact in our office - 300,00 HRK

5.6. Counseling (field work included)

according to the client's location:

• Sibenik-Knin County – 500,00 HRK
• Other counties – 800,00 HRK

5.7. Market research

market value of the property performed by a licensed - authorized agent, his spoken or in written professional opinion on the market value of the property will be charged according to the type and complexity: - apartments - 300.00 HRK / home; weekend houses, plots and commercial spaces - 400.00 HRK / economic and industrial buildings = 500.00 HRK / other - according to the specifics of the real estate – pursuant to agreement.

5.8. Evaluation of the real estate value

(assessment by a certified court expert) a written expert-valuation of the property value, charged according to the rates by the certified expert or pursuant to agreement.

5.9. Counseling

in relation to obtaining various documents (legalization of buildings, permits - construction, location, utilization, etc.) 1,200.00 HRK per property, consultancy + obtaining the necessary documentation on behalf of the party (proxy) - 3,000.00 HRK - 8,000.00 HRK - depending on the size and complexity of the building and plot requiring documentation

6. Contract termination

Parties may withdraw from the mediation contract prior to the expiry of the deadline only in case of explicit justification. In this case the client shall compensate for the agency costs.
Should the client conclude a contract with a third party, the party being introduced to him by the agency, within one year following the mediation contract expiry, the client shall reimburse the agency for the commission fee in full. The mediation contract is concluded for a definite period and may be terminated prior the expiration time only by a written notice submitted by any of the parties. If the notice period is not specifically stipulated by the mediation contract, it shall be 8 days from the receipt of the termination notice. When the mediation contract is terminated by cancellation, the contracting parties shall not have any claims. The client shall reimburse the agency for costs.

7. Cooperation with other agencies

The agency is willing to cooperate with other agencies engaging in real estate mediation which respect fundamental ethical principles (excluding the disclosure of false information in order to obtain business operations and customers, spreading rumors about other agencies in any way in order to obtain jobs and clients, unrealistic estimates of property in order to obtain mediation activities and exclusion of other agencies from the market, giving statements to the media for the purpose of personal publicity and to detriment of other agencies).
Mutual cooperation is based on the business code of ethics of real estate agencies - members of the Real Estate Exchange.

8. Delays in payment and reminders

All the rendered and delivered agency services are to be paid no later than eight days following the execution of the service or invoice issue – client's receipt. Following the payment deadline, legally valid interest rate shall be charged for overdue payments. The agency shall issue invoices – receipts to the client for every charged service.

9. General provisions and settling of disputes

All the relations between the client and the agency arising from the mediation contract not stipulated herein, or by brokerage agreement or mediation contract, shall fall under the governance of general provisions of mediation contract and the other provisions of the Civil Obligations Act.
Any disputes shall be settled by the Municipal Court in Sibenik.

In Šibenik, 05.05.2011.
Director: Željka Skračić