DRE & LicensingIntermediateCalifornia Exam
In California, the Real Estate Recovery Account is funded by:
AState general fund appropriations
BA portion of license fees paid by real estate licenseesCorrect
CMandatory contributions from title companies
DCourt-ordered fines from disciplined licensees
Why A portion of license fees paid by real estate licensees Is Correct
Answer B: A portion of license fees paid by real estate licensees
The Real Estate Recovery Account is funded by a portion of the license fees paid by California real estate licensees. It provides compensation to members of the public who have suffered financial loss due to the fraudulent or dishonest acts of a licensee and cannot otherwise collect on a civil judgment.
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Key Terms to Know
Agency
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
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