California Real Estate Practice Exam

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Question: 1 / 20

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

$10,000

$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.

$30,000

$40,000

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