The Consumer Recovery Account administered by the California Department of Real Estate is funded by:
Correct Answer
B) a portion of the license fees paid by California real estate licensees.
The Consumer Recovery Account pays judgments that defrauded consumers cannot collect from a licensee, and the Legislature funded it from inside the industry rather than from the General Fund. Business and Professions Code section 10450.6 credits twelve percent of every license fee the Department of Real Estate collects to the account, so salespersons and brokers contribute at issuance and at each renewal. Title premiums, recording fees, and errors and omissions coverage all pay for other things, and none of them reaches the account.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
- → A California buyer's agent fails to note a material defect during the visual inspection required by Civil Code §2079. The buyer discovers the defect eight months after close of escrow and wants to sue the agent for breach of that inspection duty. What limitations period applies?
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → A listing broker sells an office building to a syndicate of which the broker is a member without informing the seller of this interest. Before closing, the seller discovers the broker’s interest and refuses to sell. What would happen in a civil suit to collect a commission?
- → A California real estate salesperson leaves one brokerage and is retained by another. Who reports the change to the Department of Real Estate, and by when?
- → After a seller accepts an offer, the seller's agent receives a second written offer at a higher price before the sale closes. California licensing rules require the agent to present that offer to the seller. Which fiduciary duty does this requirement carry out?
- → The creation of a valid agency relationship between a principal and an agent requires:
- → Without being licensed as an escrow officer, a broker may not handle escrow activities when they:
- → Seller Sally lists her property with Agent Fred and receives an offer. Agent Fred convinces Seller Sally to accept the offer by verbally promising her he will find her an ideal replacement home before the close of escrow. Agent Fred is unable to find an acceptable replacement home for Seller Sally before the close of escrow. Which of the following is most correct?
- → All of the following statements are true concerning an in-house sale, except:
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