California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

Payments for a financial injury caused by a fraudulent real estate broker would be made from the California Real Estate Recovery Fund. This fund is specifically set up to provide compensation to individuals who suffer a financial loss due to the illegal actions of a licensed real estate broker. Option B, the broker's personal assets, would not be used to pay for the financial injury as it would not be fair to expect the broker to personally cover the cost. Similarly, option C, insurance companies, would not be responsible for covering the fraudulent actions of the broker. Option D, federal relief funds, would not apply in this case as the fraudulent actions were carried out within the state of California and the state has its own recovery fund for such incidents.