New Real Estate Brokerage Act – What Changes for Agencies
On 7 July 2026, the new Real Estate Brokerage Act entered into force. The key changes introduced by the new Act are outlined below.
Stricter Business Requirements and the Status of Real Estate Agents
The new Act increases the minimum level of professional liability insurance. A broker must now hold an insurance policy providing coverage of at least EUR 100,000 per insured event and EUR 300,000 for all claims in a single insurance year. This is a significant increase compared with the previous Act, under which the minimum insured amount was HRK 200,000 per insured event and HRK 600,000 for all claims in a single insurance year.
Another change is the more detailed regulation of the good repute requirement. Good repute is required not only of the broker, but also of its statutory representative, beneficial owner, holder of a qualifying interest and other persons connected with the broker’s ownership and management structure. The Act specifically identifies the criminal offences that result in the good repute requirement being deemed not to have been met.
The procedure for obtaining the decision authorising the performance of brokerage activities is now conducted through the START PLUS e-service. In that procedure, an agency must specifically prove that it has at least one real estate agent registered as a full-time employee, by means of an electronic record issued by the Croatian Pension Insurance Institute (HZMO). Once a year, the broker must submit documentation to the Croatian Chamber of Economy (HGK) proving that it continues to meet the requirements for carrying out brokerage activities.
The status of real estate agents is also regulated more precisely. An agent must have passed the professional examination, be entered in the Register of Agents and be employed by one broker under an employment contract. An agent may not work simultaneously for multiple brokers or provide identical or similar services connected with the business that is the subject of the brokerage. Agents who were already entered in the Register on the date the new Act entered into force must, within 30 days, submit documentation to the HGK proving that they continue to meet the conditions for registration; otherwise, they will be removed from the Register.
New Rules on Contracts, Advertising and Property Viewings
A brokerage agreement must still be in writing and concluded for a fixed term, but the new Act expressly provides that brokerage activities may not be carried out without a concluded agreement. The Act also prescribes the mandatory content of the agreement, including the subject matter of the brokerage, the type and essential content of the legal transaction, the amount of the brokerage fee, additional services and costs, and the broker’s registration number.
An important new requirement is that the broker’s valid price list at the time the agreement is concluded must form an integral part of the agreement. The price list must state its date and year and be signed by the broker and the principal, or by the relevant third party. In practice, this means that agencies should check whether their standard agreement forms are compliant and whether the price list is in fact attached to and signed with each agreement.
The Act now expressly prohibits advertising a property unless a brokerage agreement has first been concluded with the property owner. This is one of the most important changes affecting agencies’ day-to-day operations. A written agreement with the owner must exist for every property that is advertised.
The most important change concerning relations with buyers and tenants relates to property viewings. An agency may not make a third party’s viewing of a property conditional upon that person first signing a brokerage agreement. A viewing confirmation may be signed when the property is viewed, but such a confirmation is not a brokerage agreement and may not impose an obligation on a buyer, tenant or other third party to pay a commission. If an agency uses a viewing confirmation as a disguised basis for charging a commission, that form should be amended.
New Rules on Commission, Record-Keeping and Penalties
The new Act clearly provides that a brokerage fee may not be charged to a third party who becomes the buyer, tenant or other acquirer in the legal transaction if that person has not concluded a brokerage agreement with the broker. The mere fact that someone viewed the property or later purchased it is not a sufficient basis for charging a commission.
Acting as broker for both parties is not prohibited, but is now regulated more precisely. An agency may charge a fee to both the seller and the buyer only if it has a separate brokerage agreement with each party. If both parties pay a fee, the total amount charged in respect of the same property may not exceed the maximum amount set out in the valid price list. If the agency has an agreement with both parties but only one party pays the fee, that party may be charged no more than half of the fee specified in the price list.
The required content of the brokerage records has also been expanded. The records must now contain additional information, including the property address, cadastral and land register details, the energy performance class, the amount of the brokerage fee, the person liable for payment and the price list on the basis of which the fee was agreed.
The penalties are also more precisely linked to specific infringements. For brokerage without an agreement, advertising without an agreement with the owner, making a viewing conditional on signing an agreement, improper charging of fees or improper maintenance of brokerage records, the fine for a broker ranges from EUR 3,000 to EUR 6,000, while the fine for the responsible person ranges from EUR 1,000 to EUR 3,000. For carrying out brokerage activities without meeting the statutory requirements or without a decision issued by the Ministry, the fine for a broker ranges from EUR 15,000 to EUR 30,000.
In conclusion, agencies should first review their insurance policy, the status of their agents, registration in the relevant Register and Register of Agents, their brokerage agreement templates, price list, viewing confirmation, property advertising practices, rules for charging commissions to buyers and tenants, and the content of their brokerage records. The greatest practical risks under the new Act are advertising without an agreement with the owner, making a viewing conditional on signing an agreement, charging a buyer a commission without a separate agreement, and using a viewing confirmation as a disguised commission agreement.
