California Real Estate Broker Practice Exam 2025 - Free Real Estate Broker Practice Questions and Study Guide

Question: 1 / 1000

The California Real Estate Recovery Account is primarily funded by?

10% of property sales

A flat fee from all real estate agents

5% of real estate license fees

The California Real Estate Recovery Account is primarily funded by a portion of the real estate license fees collected from licensees. Specifically, a set amount from the fees is allocated to this account, which provides a safety net for consumers who suffer monetary losses due to the actions of real estate agents or brokers who are found to be untrustworthy or are guilty of misconduct. This funding mechanism is essential as it helps to ensure consumer protection within the real estate marketplace.

Real estate licensees contribute a specific fee when they apply for or renew their licenses, and a part of that fee directly supports the Recovery Account. This not only promotes ethical practices among agents by creating a form of accountability but also reassures consumers that there exists a resource for compensation in case of malfeasance by real estate professionals.

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State tax funds

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