California Real Estate Practice Exam

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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!

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The Real Estate Recovery Account is funded by?

  1. Property taxes

  2. Real estate sales commissions

  3. Real estate license fees

  4. General state funds

The correct answer is: Real estate license fees

The Real Estate Recovery Account is specifically designed to protect consumers from financial loss due to fraud, misrepresentation, or deceit in a real estate transaction. Therefore, it is important for the account to be funded by fees collected from real estate licensees who are directly involved in these transactions. Property taxes, real estate sales commissions, and general state funds are not directly related to real estate transactions and would not adequately support the purpose of the Real Estate Recovery Account.

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