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 award that can be made from the Real Estate Recovery Account per transaction?

$10,000
$20,000
$30,000
$40,000

The correct answer is: $20,000

The maximum award that can be made from the Real Estate Recovery Account per transaction is indeed $20,000. This account is designed to protect consumers who suffer losses due to the improper actions of a licensed real estate professional. Each transaction, if it results in a legitimate claim against a real estate professional, can lead to an award from this account, but the cap on that award is set at $20,000. Understanding this limit is crucial for real estate professionals and consumers alike, as it emphasizes the importance of ethical conduct within the industry. The Recovery Account serves as a safety net for consumers, but it is important to recognize that there are limits to the extent of financial recovery available per transaction. If a consumer faced a situation involving multiple transactions, the total recovery could potentially be more than $20,000, but for each individual transaction, the limit remains firmly at $20,000.