Iowa Real Estate Salesperson Exam

A home sells for $340,000 with a total commission of 6%. The listing brokerage receives 50% of the total commission, and the listing agent receives 60% of the listing brokerage's share. How much does the listing agent earn?

1. A$10,200
2. B$6,120Correct
3. C$4,080
4. D$20,400

Why: First find the total commission: $340,000 x 6% = $20,400. The listing brokerage's share is 50%: $20,400 x 0.50 = $10,200. The listing agent then receives 60% of that: $10,200 x 0.60 = $6,120. The $20,400 figure is the total commission and $10,200 is the brokerage's full share, not the agent's; $4,080 mistakenly takes 40% instead of 60%.

In a typical mortgage or deed of trust, which document is the borrower's personal promise to repay the debt?

1. AThe promissory noteCorrect
2. BThe deed of trust
3. CThe mortgage
4. DThe reconveyance

Why: The promissory note is the borrower's written promise to repay the loan and is the evidence of the debt itself. The mortgage or deed of trust is the security instrument that pledges the property as collateral; it secures the note but does not create the debt. A reconveyance is issued when the debt is fully paid to release the lien.