Croatia implements new real estate brokerage law

A new Real Estate Brokerage Act in Croatia is significantly altering the domestic property market by tightening professional standards. The legislation requires all agents to pass a professional exam, be listed in the Directory of Agents maintained by the Croatian Chamber of Economy (HGK), and be employed by a registered intermediary.

Under the new rules, agents can no longer operate independently; they must be employed full-time by a registered intermediary (agency) to maintain their status. This distinction between the agent and the intermediary is central to the new regulatory framework. Additionally, the law clarifies rules regarding agency commissions and prohibits agencies from making property viewings conditional upon signing a representation agreement.

Data indicates a substantial impact on the workforce, as only 2,727 of the 5,078 registered agents were previously employed by intermediaries. The HGK is currently managing the large-scale process of updating the Directory of Agents and the Register of Intermediaries to ensure compliance with these heightened standards.