In practice, it is common to encounter situations where real estate agents charge commission fees from both the seller and the buyer. This creates a conflict of interest because the agent is financially motivated to favor one party, usually the seller, which can put the buyer at a disadvantage. For example, agents might increase the asking price of a property to boost their commission, resulting in higher costs for the buyer.
Another typical conflict occurs when agents do not clearly disclose whom they represent, which leads to a lack of transparency and trust. Buyers and sellers may not receive the necessary information or professional support they deserve.
Conflicts of interest are regulated by the Act on Real Estate Brokerage, which requires agents to act professionally, conscientiously, and in the best interest of their clients. The obligations of agents are defined in the brokerage contract, and violations can have legal consequences. Moreover, the Act on Prevention of Conflicts of Interest, which manages the balance between private and public interests, provides additional transparency and accountability, especially for public officials involved in property-related decisions.
To ensure security and neutrality during property transactions, it is recommended to engage an independent consultant or legal advisor who will safeguard your interests throughout negotiations and deal closures.me se povećava sigurnost i povjerenje u cijeli proces kupnje ili prodaje nekretnine u Dubrovniku.
Advantages of hiring an independent consultant include:
- In-depth legal and technical verification of the property, focusing on vlasništvo (ownership), encumbrances, građevinske dozvole (building permits), and other essential documents, which reduces risk after the transaction.
- Professional assistance in negotiations with the other party, ensuring a fair cijena (price) and more favorable terms for the client.
- Saving time and reducing stress since the consultant manages all phases of the process—from search, verification, negotiation to final paperwork.
- Access to better information and a network of contacts in the local Dubrovnik market, increasing the chances of finding the best opportunities.
Also, an independent consultant acts as an ally protecting the interests of the buyer or seller without conflicts of interest that an agency agent might have tied to a specific offer or demand. This increases the security and trust in the entire process of buying or selling property in Dubrovnik.
