Iowa Real Estate Practice Exam

What compensation are members of the Iowa Real Estate Commission entitled to?

1. Only a daily stipend

2. Actual expenses plus a stipend for each day of service

3. Commission on real estate sales

4. Salary determined by state legislature

The correct answer is: Actual expenses plus a stipend for each day of service

Members of the Iowa Real Estate Commission are entitled to compensation that consists of actual expenses incurred while performing their duties, in addition to a stipend for each day of service. This structure allows commission members to be reimbursed for costs related to their work, such as travel and lodging, which is essential for fulfilling their responsibilities effectively. The inclusion of a stipend underscores the value placed on their time and contributions to the commission's activities, ensuring that serving on the commission does not create a financial burden on its members. In contrast, the other options do not accurately reflect the compensation model established for commission members. Only a daily stipend would not cover additional out-of-pocket expenses, which could deter qualified individuals from serving. Compensation based on commissions from real estate sales or a salary determined solely by the state legislature would misalign the function of the commission, which focuses on regulation and oversight rather than profit generation.