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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What happens to Broker B's license if Buyer A receives an award from the State Real Estate Recovery Account due to Broker B's actions?

The license is permanently revoked
The license is suspended
The license is automatically renewed
Nothing happens to the license

The correct answer is: The license is suspended

If Buyer A receives an award from the State Real Estate Recovery Account due to Broker B's actions, it means that Broker B has committed some type of fraudulent or illegal behavior that resulted in financial harm to the buyer. As a consequence, Broker B's license would likely be suspended as a form of disciplinary action by the licensing board. This is to protect future clients from potential harm and to hold Broker B accountable for their actions. The other options are incorrect as they do not address the issue of wrongdoing by Broker B and do not align with the typical consequences for such actions in the real estate industry. For example, permanent revocation is typically reserved for severe cases or repeat offenses, and automatic renewal is not a relevant response to misconduct.