What is the maximum amount that can be paid to a licensee by the Real Estate Recovery Account?

The Real Estate Recovery Account in California is designed to protect consumers who suffer losses due to the wrongful acts of licensed real estate professionals. The maximum amount that can be paid out to a licensee from this fund is $100,000 per transaction. This is established to ensure that claimants have a financial safety net when they face financial harm due to a real estate broker or salesperson's unethical practices.

Choosing $100,000 reflects the intent of the program to adequately compensate aggrieved parties while also maintaining a sustainable fund for future claims. It's important for agents and brokers to be aware of this maximum since it highlights the accountability placed on real estate professionals in their transactions, promoting ethical practices within the industry.