The California Real Estate Recovery Account is funded by?

The California Real Estate Recovery Account is funded by?

• A. A percentage of sales tax
• B. 5% of real estate license fees
• C. Public donations
• D. A fixed amount per licensed agent

Answer: (B)

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.

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.