New rules in real estate brokerage: what is changing?
As of 7 July, the new Real Estate Brokerage Act has entered into force. It defines the rights and obligations of all participants in the purchase and sale process more clearly and provides additional protection for buyers, sellers and real estate brokers. Greater emphasis is placed on transparency in business operations, clearly defined relationships between the parties and the responsibility of the broker throughout the entire process.
Below, we provide a brief overview of the most important changes and explain what they mean for buyers. Although the new Act introduces additional obligations for brokers, many of the prescribed rules have already been an integral part of the way we have worked for years, while the new legal framework now defines these professional standards more clearly and applies them to the entire market.
Written agreement before advertising
An agency may no longer advertise a property without a written brokerage agreement concluded with the owner. Buyers can therefore be sure that the agency advertising the property is genuinely authorised to do so.
It is important to note that a written agreement does not necessarily mean that only one agency may advertise the property, unless exclusive brokerage has been expressly agreed with the owner. Nevertheless, this obligation contributes to better organised property listings and greater responsibility of agencies for the information they publish.
A written agreement with the owner has always been the starting point of every cooperation. From the very beginning, it clearly defines the brokerage terms, the property price and the way in which the property is presented to buyers.
Checking the agency before a viewing
Before arranging a viewing, it is advisable to check whether the agency is registered in the Register of Real Estate Brokers of the Croatian Chamber of Economy. The registration identification number must be clearly displayed, allowing every buyer to verify easily whether the agency operates legally.
A viewing may not be charged or made conditional on signing an agreement
One of the more important changes is that an agency may no longer make a property viewing conditional on signing a brokerage agreement or on paying a commission simply because the buyer has come to view the property.
A viewing confirmation may be signed during the visit, but it is not a brokerage agreement and must not contain a provision obliging the buyer to pay a commission. A viewing is therefore an informative step after which the buyer decides whether they wish to continue with the purchase process.
Clear rules regarding commission
The buyer must know in advance whether there is an obligation to pay a commission, the amount of the commission and what it specifically includes, as well as whom the agency represents – the seller, the buyer or both parties. If the agency represents both parties, the Act lays down clear rules regarding the timely notification of both parties about the amounts of the brokerage fees they are required to pay if the purchase is completed.
As a rule, the broker becomes entitled to the commission after the sales contract has been concluded, unless otherwise agreed, in which case the entitlement may arise upon conclusion of the preliminary agreement.
Stricter penalties, greater responsibility
The Act also introduces stricter sanctions for agencies that operate contrary to the regulations, thereby providing clients with additional protection in the event of possible damage.
The purpose of these provisions is not only to sanction irregularities, but also to raise professional standards, reduce unregistered brokerage activities and create a safer and more transparent real estate market for buyers and sellers.
What does this mean for you as a buyer?
The new rules bring greater transparency, but they do not replace the need for your own attention. Before signing any document, take the time to read its provisions and request clarification of anything you do not understand. You have the right to know whether you are paying a commission, in what amount and when the payment obligation arises – and you have the right to verify whether the agency is authorised to act as a broker in the sale of the property it is advertising.
The new legal rules further raise standards in real estate brokerage, which is good news for everyone participating in the market. When relationships are clearly defined and communication is open and transparent, the entire purchase and sale process becomes simpler and safer – precisely the approach that Emporia Real Estate has followed since the very beginning of its operations, as confirmed by numerous Google reviews from satisfied clients.
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