Illinois Leasing Agent Practice Exam

What is the purpose of the Real Estate Recovery Fund?

1. To promote real estate education

2. To cover claims of aggrieved parties affected by licensees

3. To manage real estate licensing processes

4. To assist licensed agents with marketing

The correct answer is: To cover claims of aggrieved parties affected by licensees

The Real Estate Recovery Fund is established specifically to provide financial compensation to aggrieved parties who have suffered losses due to the wrongful acts of real estate licensees. This fund serves as a safety net, ensuring that consumers who have been harmed—such as through fraud or misrepresentation by a licensed real estate agent—can recover some of their financial losses. By being able to access this fund, victims are more likely to trust the real estate market and its professionals, knowing that there is a mechanism in place to rectify situations where they may have been wronged. The other options highlight various functions related to real estate but do not align with the fundamental purpose of the Recovery Fund. Promoting real estate education, managing licensing processes, and assisting with marketing are essential elements of the real estate profession, but they serve different needs and objectives compared to the protective role of the Recovery Fund for aggrieved consumers.