California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in 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.