Practice and Disclosures, 25% of the examination
Consumer Recovery Account
California's fund of last resort for direct losses caused by a licensee's intentional fraud or conversion of trust funds in licensed activity.
Also called: California Real Estate Recovery Fund, Recovery Account
DRE's exam outline still uses the historic label California Real Estate Recovery Fund, while current statutes and DRE materials use Consumer Recovery Account. A claimant must satisfy detailed judgment or restitution, filing, notice, collection, and eligibility rules. Current caps are $50,000 per transaction and $250,000 per licensee. Beginning in 2026, payment can be allowed under a preponderance standard without automatic suspension; automatic suspension follows only when the required fraud or conversion finding meets the clear-and-convincing standard.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
What judgment can support an application to California's Consumer Recovery Account?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.