DRE & LicensingIntermediateCalifornia Exam
The DRE's Recovery Account provides funds to:
APay broker salaries during license suspension, per standard DRE licensing procedure
BCompensate members of the public who suffer losses caused by licensee fraud or misrepresentationCorrect
CFund real estate education programs, as required for license renewal in California
DCover escrow shortfalls, consistent with Business and Professions Code licensing rules
Why Compensate members of the public who suffer losses caused by licensee fraud or misrepresentation Is Correct
Answer B: Compensate members of the public who suffer losses caused by licensee fraud or misrepresentation
The California Real Estate Recovery Account (funded by licensee fees) compensates members of the public who have suffered monetary losses due to fraud, misrepresentation, or deceit by a real estate licensee and have obtained an uncollectable judgment.
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