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 is the maximum amount per licensee that can be paid by the Real Estate Recovery Account?

$50,000
$75,000
$100,000
$125,000

The correct answer is: $100,000

The Real Estate Recovery Account is a fund that provides restitution to consumers who have been financially damaged by a real estate licensee's dishonest or improper conduct. The maximum amount per licensee that can be paid out of this account is $100,000. This amount is set by California state law and is the same regardless of the type of real estate transaction. Options A, B, and D are incorrect as they do not accurately reflect the maximum amount that can be paid out of the Recovery Account. Option A is too low, option B is closer but still not the correct amount, and option D is too high. Option C, $100,000, is the correct and maximum amount that can be paid out of the Recovery Account. This ensures that consumers who have been financially harmed by a real estate licensee are able to receive a significant amount of restitution to compensate for their losses.