If Broker A defrauds individuals with $200,000 in losses, what is the maximum compensation they can claim from the Recovery Account?

The maximum compensation that individuals can claim from the California Real Estate Recovery Account for losses caused by fraudulent actions of a licensed real estate broker is limited to $100,000 per incident or transaction. This is a protective measure designed to offer a safety net for consumers who suffer financial losses due to unethical behavior by real estate professionals.

Even though the total losses in this scenario amount to $200,000, the amount that can be compensated from the Recovery Account per individual claim is capped at $100,000. This insures that the Recovery Account remains sustainable and can continue to help multiple victims rather than allowing excessive claims to deplete its funds quickly.

Therefore, under these circumstances, the claim amount against the Recovery Account is determined not by the total loss but by this statutory limit per claim, which is $100,000.