What is the maximum compensation allowed from the Real Estate Recovery Account per transaction?

The maximum compensation allowed from the Real Estate Recovery Account per transaction is $20,000. This amount is significant because the Real Estate Recovery Account is a fund established to reimburse individuals who have suffered loss due to the wrongful acts of licensed real estate professionals. The amount of $20,000 reflects the state's efforts to provide some level of protection to consumers against fraud or misrepresentation in real estate transactions.

Understanding the purpose of this account is essential for both real estate professionals and consumers alike. It emphasizes the responsibility of licensees to conduct their business ethically and legally. If a consumer experiences a financial loss due to a broker's misconduct, the Recovery Account serves as a potential source of compensation, reinforcing trust in the real estate industry.

The other amounts suggested do not align with the current regulations regarding the Real Estate Recovery Account limits and therefore would not apply in this context.