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A seller's Contract A fixes the brokerage's commission at 2% of the sale price. Her 115 sq m Business Bay apartment sells at AED 1,900 per sq ft. What commission is earned, excluding VAT, to two decimals?
Remuneration is what the parties agreed (Bylaw No. 85 of 2006, Art. 27, in force 12 Oct 2026), here 2% of the price; 2% is also the typical market rate, but the answer rests on the agreed figure. Convert the area: 115 x 10.764 = 1,237.86 sq ft. Price: 1,237.86 x 1,900 = AED 2,351,934.00. Commission: 2% x 2,351,934.00 = AED 47,038.68. Multiplying 115 sq m by the per-sq-ft rate without converting gives 4,370.00; dividing by 10.764 instead of multiplying gives 405.98; 23,519.34 applies 1% instead of the agreed 2%. Source: Bylaw No. (85) of 2006, Art. 27 (in force 12 Oct 2026); 1 sq m = 10.764 sq ft (RERA Practice Guide, Nov 2024).
Applying a per-sq-ft rate to an area in sq m without converting it first.
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