Did you know that, in Croatia, a real estate agency is not legally allowed to advertise your property unless you have signed a brokerage agreement with them?
Yes, you read that correctly – without the seller’s written authorisation, a real estate agency may not advertise your house, apartment or land, nor is it entitled to claim a commission.
In other words, as long as no brokerage agreement exists, the agency has no rights towards you, and you have no obligations towards the agency.
We often hear sellers say things like:
“Bring me a buyer first, and then I’ll sign whatever is needed,” or
“I’ll pay the commission only once the property is sold.”
However, what many sellers do not realise is that without a signed brokerage agreement, the agency is not allowed to publicly advertise your property at all. Only by signing the brokerage agreement do you legally authorise the agency to present your property on the market in Croatia.
What many sellers also don’t know is that by signing a brokerage agreement, you are not risking anything. If the agency does not find a buyer, you do not pay any commission. By signing, you do not incur any costs nor put yourself in an unfavourable position – you simply enable the agency to legally start working and fulfil its obligations under Croatian law.
A video on this topic has also been recorded, with both Croatian and English subtitles, and you can watch it HERE.
WHAT IS A BROKERAGE AGREEMENT?
If you plan to sell your property in Croatia through a licensed real estate agent or agency, there is one document that is absolutely essential – the Brokerage Agreement.
By signing this agreement, you authorise the agency to carry out all the steps necessary for the sale of your property – from advertising and bringing potential buyers, to negotiations and concluding the sale and purchase agreement.
A brokerage agreement is a written agreement between you and the agency. Under Croatian real estate law, the agency undertakes to make reasonable efforts to find a serious buyer and connect them with the seller for the purpose of negotiating and concluding a legal transaction involving the transfer of ownership of real estate. The seller (the principal) undertakes to pay the agreed brokerage fee only if the transaction is concluded with a buyer introduced by the agency.
Your obligation to pay the agency’s commission arises only when the agency you authorised finds a buyer who accepts your terms of sale. By signing the agreement, you take no financial risk, while ensuring that the sale of your property is handled professionally and transparently.
WHAT DOES A BROKERAGE AGREEMENT CONTAIN?
A brokerage agreement contains all key information: details of the agent and the seller, the type of service, details of the property, the agent’s obligations, the amount of the brokerage fee, payment terms and the duration of the agreement.
In Croatia, a brokerage agreement must be in written form. After signing, always ask for your own copy – it gives you a clear overview of your rights and obligations and serves as evidence in case of any misunderstandings.
THE BROKERAGE AGREEMENT BINDS BOTH THE AGENCY AND THE SELLER
By signing the agreement, the authorised agency undertakes to:
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analyse and review your property documentation and warn you of any potential issues,
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study all relevant documentation to present the property accurately to buyers,
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prepare a property description and translate it into at least one foreign language,
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present your property to the market, including publication on the agency’s website, professional photography, advertising on property portals in Croatia and abroad, and additional marketing activities aimed at achieving a faster sale
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respond to enquiries and communicate with potential buyers,
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organise viewings and accompany potential buyers, providing all necessary explanations about the property,
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find a suitable and serious buyer and connect them with you,
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conduct negotiations and represent your interests once a buyer is found,
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participate, in cooperation with a law firm, in the preparation and signing of the sale and purchase agreement,
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after the sale and full payment of the purchase price, deregister you from all relevant records related to the property (land registry, cadastre, tax authority),
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deregister you as the user with utility providers (electricity, water, waste services, communal charges, building reserve fund).
As the seller, your obligations are to:
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allow the agency and its clients unobstructed viewings of the property,
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inform the agency of any changes to the asking price,
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be available to answer more detailed questions about the property,
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cooperate in negotiations if the agency introduces a buyer who accepts your terms,
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pay the agreed brokerage commission upon signing the sale and purchase agreement.
Note: If the agency does not find a buyer, you pay nothing, unless otherwise agreed in the brokerage agreement.
DURATION AND TYPES OF BROKERAGE AGREEMENTS
A brokerage agreement in Croatia is concluded for a period agreed between the seller and the agency. If no duration is specified, it is considered to be concluded for 12 months, with the possibility of extension by mutual agreement.
Regarding the type of brokerage agreement, there are two options:
Exclusive (sole) brokerage agreement – by signing this agreement, only one agency is authorised to sell your property. During the contract period, you may not offer the property through other agencies or sell it independently.
Non-exclusive (standard) brokerage agreement – by signing this agreement, you may offer the same property through several agencies and are also free to try to sell it yourself.
Before signing any brokerage agreement, every agency in Croatia is obliged to explain all key terms to you and give you the opportunity to ask questions. This ensures that you fully understand your rights and obligations. If anything is unclear, always ask for clarification before signing.
Both exclusive and non-exclusive agreements have their advantages and disadvantages, and various practical situations can arise. These deserve a more detailed discussion, which I will leave for one of my future articles.
IF YOU WORK WITH MORE THAN ONE AGENCY
In Croatia, it is legally permitted to sign brokerage agreements with multiple agencies, although agencies generally prefer fewer parties to be involved.
Ultimately, the choice of agency is entirely up to the seller. You decide whom you trust with the sale of your property and whether you wish to work with one or several agencies. Each agency keeps official records of property viewings, so it is always clear who introduced which buyer and when.
If you decide to work with multiple agencies, it is important to:
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keep a clear overview of all brokerage agreements you have signed, to avoid misunderstandings,
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have contact details for all agencies ready, so you can quickly inform them of changes such as price adjustments or additional information,
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provide all agencies with the same asking price and conditions – different prices create confusion on the market and leave a poor impression on potential buyers,
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inform all agencies of any price changes or other important updates,
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inform all agencies immediately once the property has been sold (to prevent continued advertising of a sold property),
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keep track of which agency actually introduced the buyer.
IF YOU SELL THE PROPERTY YOURSELF
If you find a buyer for your property on your own, you must inform every agency with which you have a signed brokerage agreement. This allows them to withdraw advertisements and stop promoting the property.
In this case, the agency will remove all listings, and you do not have to pay a commission, as the sale was not completed through their mediation.
CONCLUSION
A brokerage agreement is not an unnecessary burden or a pointless obligation – it protects both parties, simplifies the sales process and ensures transparent cooperation.
By signing it, you know that you are not taking any risk, and you have clear rules in place. If the property is sold, you can be confident that the process will be handled professionally and that the commission will be paid only to the agency that genuinely found the buyer and completed the work.
Good luck with your sale!
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Author: Jasminka Fišer Gavranović – owner of Alfa nekretnine real estate agency in Vodice, a licensed real estate agent and a home staging expert
Alfa nekretnine
Obala Juričev Ive Cote 27
Vodice, Croatia
Office: +385 22 441 292
Mobile: +385 91 525 3260
Email: info@alfanekretnine.hr
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About the Author
Jasminka Fišer Gavranović is a long-standing licensed Croatian real estate agent with many years of professional experience. Born in Slavonia and raised in Zagreb, she spent a short period living in London before eventually settling with her family in Dalmatia, in the beautiful Croatian coastal town of Vodice.
After working in a variety of professions in Zagreb, she found her true calling in the real estate sector in Vodice — a field she genuinely enjoys and now runs together with her husband, Frano.
Since 2005, she has been actively involved in real estate brokerage, specializing in property sales and purchases in Vodice area. Together with her team at Alfa Nekretnine, she has initiated and managed a number of distinctive projects that have set the agency apart on the local market. One of her achievements was participating, in 2011, as one of the few real estate professionals in Croatia, in the popular American half-hour TV show “House Hunters International.” In the episode, she hosted her Australian client and guided them through the property-buying process in Vodice, showcasing the town to viewers around the world. This proved to be excellent promotion not only for her agency, but also for the destination of Vodice itself.
Through many years of hands-on work in real estate, she has seen every kind of apartment and house imaginable. In 2018, she decided to take a step further and enter the world of home staging. She completed her professional training in English in 2014, earning the title “Certified Home Staging and Property Styling Professional,” followed by the “Home Staging Business Training Program.” With this, she rounded out all the knowledge she considered essential to pursue this new and dynamic field, becoming a leading home staging expert in Croatia.
In addition to her active presence on social media and delivering educational presentations on home staging, her other professional interests include writing, public speaking, and communication skills.