What is the maximum amount that will be paid out of the Recovery Account for a transaction?

In real estate transactions, the Recovery Account serves to protect consumers from losses due to the actions of licensed real estate professionals. The maximum amount payable from this account for a single transaction is established by law to provide a safety net for consumers.

The reason the correct answer is $50,000 pertains to specific legal provisions surrounding the Recovery Account. This limit is set to ensure that consumers can seek recourse for losses incurred due to a real estate agent's negligence, fraud, or misrepresentation. The amount reflects a balance, offering substantial financial protection while also maintaining a sustainable fund.

The other options do not align with the established statutory limit, as they suggest maximum payouts that exceed the $50,000 cap, which would not conform to regulatory guidelines. By understanding this limit, real estate practitioners and consumers alike recognize the protections in place within the industry, reaffirming the importance of ethical practices and accountability among licensed agents.