Real Estate Council of Alberta Fundamentals Practice Exam

What does the Real Estate Insurance Exchange (REIX) primarily provide for consumers?

1. Mandatory health insurance

2. Financial protection against loss

3. Coverage for all transaction fees

4. Indemnity against all legal claims

The correct answer is: Financial protection against loss

The Real Estate Insurance Exchange (REIX) primarily provides financial protection against loss. This organization focuses on insuring real estate transactions and offers various insurance products tailored to the needs of consumers in the real estate market. By doing so, REIX helps safeguard consumers from potential financial losses that may arise during real estate transactions, such as issues related to property title, fraud, or errors in the transaction process. While other options mention different types of coverage, they do not accurately represent the core function of REIX. For instance, mandatory health insurance is not within the scope of real estate insurance services. Coverage for all transaction fees would also be broader than the specific protections offered by REIX, as the focus is on insurance for losses rather than a blanket coverage for all fees. Indemnity against all legal claims is similarly not the primary role of REIX, as their insurance typically covers specific risks associated with real estate transactions rather than providing blanket legal protection for every possible claim. Hence, the emphasis on financial protection against loss is what distinguishes the services provided by REIX in relation to the real estate sector.