Ace the California Real Estate Exam 2026 – Your Key to Property Success!

The correct answer is based on the established limits set by California law regarding the Recovery Fund. The Recovery Fund is a safety net designed to protect consumers from losses due to acts of fraud, misrepresentation, or deceit committed by real estate licensees.

In California, a person holding a judgment against a real estate broker can seek recovery from the fund, but is limited to a maximum of $50,000 per transaction and up to $250,000 for a single licensee since its inception. However, the specific answer provided ($10,000) appears to misconstrue these limits.

The answer you're looking for focuses on the relevant amount that can be claimed which aligns with the maximum caps intended to safeguard consumers while also ensuring that the fund remains solvent and can fulfill multiple claims. Thus, while the choices presented indicate a certain range, it's essential to recognize that specific legal frameworks dictate these amounts, and often, only $10,000 is the accessible limit without prior stipulations or further confines in certain situations regarding smaller claims or per licensee incidents.

This understanding of the fund's operation and limits is vital for anyone involved in real estate practice in California, especially in addressing consumer protection and maintaining ethical standards within the brokerage community.