Major change coming to the real estate market: No more double commissions, another advantage for buyers

Croatia is set to implement significant changes in its real estate market with a new law on brokerage. A key provision prohibits real estate agents from charging double commissions and prevents them from conditioning property viewings on the signing of a brokerage contract. Ivan Rakocija, State Secretary at the Ministry of Economy, announced the proposed legislation, emphasizing its focus on buyer protection.

“

This law protects the buyer. It prohibits conditioning property viewings on signing a brokerage contract. It is unacceptable to ask a potential buyer for a signature and commission simply to enter a property that agencies have already contracted and advertised on behalf of the seller.

"This law protects the buyer," Rakocija stated. "It prohibits conditioning property viewings on signing a brokerage contract. It is unacceptable to ask a potential buyer for a signature and commission simply to enter a property that agencies have already contracted and advertised on behalf of the seller." The law also regulates commission fees, allowing intermediaries to charge a maximum of 50% of the total fee, as stipulated by the price list, from each party – both buyer and seller.

Rakocija highlighted the importance of this legislation, noting that for most citizens, purchasing property represents the largest financial investment. Therefore, he stressed, the state has a duty to ensure the process is maximally safe and transparent, free from manipulation. The proposed law also mandates that agencies must employ at least one full-time agent, aiming to eliminate "illegal, phantom brokers" and curb advertising manipulations.

“

For most citizens, purchasing property represents the largest financial investment. Therefore, the state has a duty to ensure the process is maximally safe and transparent, free from manipulation.

While parliamentary deputies generally supported the bill, acknowledging its potential to reduce abuses and increase market responsibility, some opposition parties expressed reservations. Boris Piližota of the SDP club argued that the law does not offer sufficient protection to buyers, who are the weakest party in the process. He insisted that buyers should be at the center of protection. Krešimir Čabaj of the DOMiNO party also warned that the law fails to meet its fundamental purpose of making housing more affordable for young families. The SDP plans to continue advocating for greater buyer protection, market transparency, cost regulation, and policies to help young people achieve homeownership.

“

The buyer must be at the center of protection and at the center of the proposed law.