The California Real Estate Recovery Account is designed to compensate victims of what?

The California Real Estate Recovery Account is specifically designed to provide compensation to victims who have suffered financial losses due to the actions of licensed real estate agents or brokers. This includes scenarios where a broker or agent has committed certain unlawful acts, such as fraud or misrepresentation, that result in financial harm to a client or a third party. However, it's crucial to understand that the account does not compensate for physical injuries or property damage.

The focus of the Recovery Account is on ensuring that individuals who are financially harmed because of unethical or illegal conduct by real estate professionals can seek justice and compensation. Misrepresentation and fraudulent activities fall under the scope of wrongful acts that the Recovery Account addresses, not physical injury, which is not within its purpose.

Thus, while the Correct answer was identified as physical injury, the California Real Estate Recovery Account does not consider that a valid reason for compensation. Instead, it primarily aims to cover victims of financial loss from misconduct in real estate transactions.