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Special terms and conditions

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SPECIAL TERMS AND CONDITIONS OF BUSINESS FOR BUYERS, SELLERS AND PARTICIPANTS AT PROPERTY AUCTIONS

The real estate agency 'Aukcija Nekretnina d.o.o. (hereinafter 'the Agency') is acting as an auctioneer and an agent broker, which employees are organising and conducting public property auctions. This Special terms and conditions of business, regulate the rules, relations and conditions of how the auctions are conducted, as well as the conduct of buying and selling properties at property auctions. It is considered that all auction participants, including the one that buy, sell and/ or attend auctions, have received, read and accepted all terms and conditions of the Agency (general and special).

 

SPECIAL TERMS AND CONDITIONS FOR SELLERS AT PROPERTY AUCTIONS

1. In these conditions 'seller' is a legal or physical person that has a signed Brokerage Contract with the Agency and has provided the auctioneers with all the general Legal Documentation and property particulars. The Agency is obliged to organise and conduct public auction and try to sell a property on behalf of the seller. The Seller is obliged to pay the Agency for every property sold a brokerage fee-commission of 3% of the selling price (excluding VAT).

2. Seller confirms to be a real and a legal owner of a property, or it is legally authorised on behalf of real owner of a property, and is able to sell a property in good faith and transfer the ownership of a property without any third party liabilities and without any financial impediments, retentions, encumbrances and charges.

3. Seller is obliged to provide the Agency with all the information's and documentations about the property to be auctioned, including an electronic photo of the property, as well as general Legal Documentations: Title Deeds, Copy of the Cadastral Plan, List of Possessors, Location/ Building permit, Usage permit and other relevant documents in their possession.

4. The Agency has got explicit and absolute right to set the date, time and place of auctions, and the way of conduct of each auction. At the same time the Agency has got an absolute right to take photos of every property submitted for the auction for their marketing purposes such as auction catalogue, web presentations, adverts etc.

5. Seller is agreeing and enabling the Agency, as well as all prospective buyers, to conduct searches, valuations and estimates, consultations and other specialist services and opinions on a property, that both the Agency and buyer may think is relevant and/ or necessary.

6. Seller is providing a written Power of Attorney to the Agency enabling the Agency to sell property at public auction on their behalf. The same Power of Attorney is signed and notarised before the Public Notary.

7. Every property can be offered at auction with a 'reserve price' (a minimum price) that is determined between seller and the Agency. Any auctioned property cannot be sold below the set 'reserve price'.

8. Seller cannot withdraw property from the auction after agreed and signed Brokerage Contract and before the auction has been conducted and organized. Except when seller pay the fee for such withdrawal, which is equivalent to the brokerage fee- Agency commission from the above article 1., and calculated as a percentage of the 'reserve price' from above article 7. (excluding VAT).

9. The Agency can withdraw (or postpone) the sale of a property at any time, if the property legal documentation or the ownership papers are not correct or misleading, without any further explanation.

10. At the auction, immediately after the successful bidding, buyer and seller sign the property Contract before the Public Notary. Seller will be represented by the Agency (through notarised Power of Attorney). Buyer pays a deposit of 10% (ten percent) of the purchase (Contract) price. The deposit is paid to the Agency's bank account and the proceeds will be forwarded to the seller, less the Brokerage fee- Agency's commission from the above article 1. (plus VAT).

11. If a property is not sold at auction, a seller can do following:

a) Sign new Brokerage Contract with the Agency to sell property on next auction, with reviewed 'reserve and guide price'

b) Enable and authorise the Agency to sell property in marketplace within certain time period

c) The Agency can advertise and offer property on specific internet property websites

d) Terminate contract and withdraw the property from sale.

12. For any unsold properties at the auction, the Agency will not be charging Brokerage Fee-commission (except if properties are sold prior to the auction ('early offers/ bids') or just after the auction ('late offers/ bids'), as well as subsequent sale of properties as described above in the Articles 11.b) and 11.c). In those circumstances the Brokerage Fee- Agency's commission is equal as described above in the Article 1.

The Entry fee paid for by the Seller for organizing the auctions are non refundable.

SPECIAL TERMS AND CONDITIONS OF BUSINESS FOR BUYERS AT PROPERTY AUCTIONS

1. In this terms and conditions, the Agency is acting as an auctioneer and an agent broker, which employees are organising and conducting public property auctions.

2. By registering as a bidder/ prospective buyer at auction (by completing Bidder's form), attending the auction, as well signing the property purchase Contract it is considered that a buyer has received, read and accepted all the terms and conditions (general and special) of the Agency.

3. Prospective buyer is a legal or physical person that has registered with the Agency, has requested a catalogue, completes the Bidders form and receives an auction Registration number that enables buyer to participate and bid for property at auction.

4. Successful buyer at auction is the person who agrees to buy the property/ lot, or if applicable, that person's representative, and has offered the highest bid. In case of any doubts, misunderstanding, as well as not meeting the reserve price during the auction, the Agency has got discretionary and absolute right to; appoint and nominate the buyer, cancel or postpone the sale of a property, as well as any other action or measure which the Agency may think is appropriate to take, with respect to the particular property/ lot.

5. The buyer is responsible to buy the property and to pay the Brokerage fee- Agency's commission that equals to 2.5% of agreed purchase price (Contract price) for each property/ lot bought, (excluding VAT). The commission is payable immediately after the singing and notarising the Contract. The buyer pays Property purchase tax.

6. The buyer has to pay the seller after signing and notarising the Contract in the following order:

- Pay the deposit of 10% of the agreed purchase price immediately after signing and notarising the Contract, with direct bank transfer or cash payment (no later than 24 hours after signing of the Contract). The deposit of 10% is to be paid to the Agency's bank account. The Agency will deduct it Brokerage fee-Agency commission and forward the remains of the deposit to the seller.

- The rest of purchase price has to be paid within 30 days from the auction date, which is effectively the date of signing the Contract (unless both buyer and seller agree other completion date).

7. The possession of the property will take place once all 'Total amount of debt' has been paid from the buyer to the seller.

8. In case the buyer does not pay and does not complete the property purchase within the required time as described in the above article 6., the Agency is authorised to do following:

a) to retain the deposit or 'guarantee payment', which will then be treated as a withdrawal fee to cover the Agency's costs and loss of income.

b) will provide buyer's details to seller's legal representatives, who will have the right to seek reimbursement and compensation.

c) to cancel and/ or postpone the sale of the property sold to the buyer, or to offer it to the other best/ closest bidder, or to sell the property at the next auction.

9. The Agency confirms that the property particulars in the catalogue and the Legal Documentation have been provided by the seller.

10. Buyers are able to receive further information for each offered property, as well as making a viewing appointment. Buyers should make their own opinion if properties offered are as described in the catalogue. Therefore it is advisable to all prospective buyers to make all the necessary searches, surveys and valuations prior to the auction, as well as seek an independent legal advice. Neither seller, nor the Agency or any of their employees or representatives is responsible for any wrong or misleading property particulars shown. At the same time, the buyer cannot seek compensation or reimbursement of any cost incurred which has been derived as a result from the previous article.

11. Prospective buyers can authorise in writing the Agency to bid on their behalf at the auction. The Agency could seek from such buyer a solvency and credit reference, photo ID and other means, in order to accept such instructions. The Agency will confirm such acceptance for bidding on buyer's behalf in writing, once the buyer pays in advance a 'guarantee payment' of 10% of the lowest guide price shown in the catalogue for a particular property.

12. Formal bids put forward at the auctions are binding are cannot be withdrawn or cancelled.

IMPORTANT INFORMATION FOR BUYERS

A prudent buyer will before bidding and attending the auction do the following regarding a particular property:

  • take professional advice from a solicitor/ surveyor/ and/or an accountant

  • read all the terms and conditions (general and special ones)

  • inspected the property/ lots interested in

  • check the relevant information and documentation about the property

  • have finance available for the deposit and purchase price, legal and notary fees, as well as agents commission and property purchase tax

  • satisfy yourself as to the accuracy and completeness regarding the property you are interested in, as mentioned above

  • the conditions assume that the buyer has acted like a prudent buyer

  • if you choose to buy a property/ lot without taking these normal precautions you do so at your own risk

GLOSSARY - TERMS AND DEFINITIONS

Terms defined in this terms and conditions will have following meaning as described below. Definitions in this terms and conditions could use singular words as plurals and plurals as singular words.

a) The Agency- company 'Aukcija nekretnina d.o.o.', that organises and conducts property auctions, auctioneers.

b) Agreed price- it is the price achieved at the auction for which a property has been sold for to a buyer by the auctioneer and does not include buyer's commission or VAT.

c) Reserve price- is a minimum price set by a seller in co-operation with the Agency, below which a property cannot be sold and it has to be below the market price.

d) Property/ Lot- every property for sale in the auction catalogue offered by the Agency on behalf of a seller(s).

e) Buyer- is a legal or physical person that has acted in a good faith and intension and has offered the highest bid for a property.

f) Buyers commission- is a commission payable to the Agency from each buyer, amounting to 2.5 % for each property bought, excluding VAT.

g) Seller- is a legal or physical person, or their appointed representative(s) that is legal owner or bearer of ownership rights for each property offered by the Agency.

h) Sellers commission- is a commission payable to the Agency from each seller, amounting to 3 % for each property sold, excluding VAT, and is payable from the deposit paid on the auction day, after signing and notarising the Contract.

i) Auction- is a public auction, advertised in the catalogue by the auctioneer.

j) Property Legal Documentation- is all legal documentation and particulars we require from each seller for a particular property and that has been subsequently provided by sellers.

k) Property Contract- is a written contract signed in good faith and intension between both buyer and seller (seller represented by the Agency).

l) Deposit- the payment of 10% of the achieved and agreed purchase price at the auction, paid by the buyer to the auctioneer's account, on the auctions day immediately after signing and notarising of the Contract. In case of not paying the remaining purchasing balance or not completing, the deposit will be retained as a buyer's withdrawal fee and it will be used to cover costs both for the seller and the Agency.

m) Guarantee payment- is the payment of 10% of the lowest 'guide price', shown in a property catalogue for a particular property, paid by the prospective buyer that is not able to attend the auction event, so has authorised the Agency to bid on their behalf.

n) Entry fee cost- is a non-refundable fee for organising an auction event, catalogue, marketing, adverts etc., payable by the sellers.

o) Total amount of debt- means achieved property purchase price, together with buyer's commission, excluding VAT, as well as any other (all) fees owed by the buyer.

p) Starting bid - is the lowest level where the bidding for the property starts, expressing bidders offer, however not representing the actual selling price of the property, which is determined by the ‘Reserve price’ set by the seller. Seller can accept the starting bid or higher bid, but which are still lower than the ‘Reserve price’ immediately after the auction or within 8 working days after the auction day. Starting bid level is an indicative point for bidders to express their interest, and therefore does not oblige seller nor the acution house to accept such bids as the actual selling price of the property.

r) Early offers- offers received prior to the auction.

s) Late offers- offers received after the auction.

 

FINAL DEFINITIONS

This terms and conditions are to be used together with all other terms and conditions of business by the Agency. By publishing them on our website, as well as in our catalogue, it is considered that all buyers, sellers and other users, participants and attendees at auctions, have received, read and accepted all the terms and conditions. Furthermore it is considered that all buyers, sellers, attendees and participants will abide to all the terms and condition during the auctions, as well as to the general rules of conduct at auction.

The Agency has got the right to change or amend all the terms and conditions of business (general and special). Any such change will be published on our website at www.croatiapropertyauctions.com

The relations between the client and the Agency arising from the Brokerage Contract which are not regulated by these Special terms and conditions, as well as General terms and conditions, nor by a Brokerage Contract, will be subject to the general provisions by the Real Estate Agent Act and the Obligatory Relations Act.

Eventual disputes will be settled by the authorised competent court(s) in Zagreb.

 

'Aukcija Nekretnina d.o.o.'