California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

The California Real Estate Recovery Account is funded by?

A percentage of sales tax
5% of real estate license fees
Public donations
A fixed amount per licensed agent

The correct answer is: 5% of real estate license fees

The California Real Estate Recovery Account is funded by 5% of real estate license fees. This choice is the most accurate because it directly relates to the real estate industry and its operation. Option A, a percentage of sales tax, is incorrect because it is not specific to the real estate sector and does not guarantee a steady revenue source for the Recovery Account. Option C, public donations, is also incorrect because it relies on individuals voluntarily contributing, which may not provide a stable source of funding. Lastly, option D, a fixed amount per licensed agent, is incorrect because it does not take into account the varying number of licensed agents in the state, and may not generate enough revenue to sustain the Recovery Account.