California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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!

Practice this question and more.

What is the size of the surety bond that the principal broker must maintain?

$5,000
$10,000
$15,000
$20,000

The correct answer is: $10,000

The correct size of the surety bond that a principal broker must maintain is $10,000. This bond serves as a form of insurance that protects clients and the state from any potential misconduct or financial mismanagement by the broker. The requirement helps ensure that brokers are accountable and provides some financial reassurance to consumers engaging in real estate transactions. Regulatory standards in California set the surety bond amount to a specific threshold to balance the need for consumer protection with the ease of entry for qualified brokers. This structure avoids imposing excessive financial barriers while still offering a safety net for clients. Other amounts suggested may not align with current regulations, as state laws have clearly established the $10,000 requirement, making it necessary for principal brokers to secure this amount to operate legally and maintain their licenses.