What function does the Real Estate Compensation Fund serve?

The Real Estate Compensation Fund is designed specifically to protect consumers who have faced financial losses due to the unlawful or unethical actions of licensed real estate brokers. This fund serves as a safeguard, ensuring that consumers can receive compensation in situations where brokers do not fulfill their obligations or engage in misconduct, such as misrepresentation or fraud. By having this compensation mechanism in place, the fund enhances consumer confidence in the real estate market, knowing that there is a recourse available in case of harm caused by brokerage practices.

The other options present functions that are not associated with the real estate compensation fund. For instance, providing loans to brokers or acting as an investment fund do not align with the fund's primary purpose, which focuses on consumer protection rather than support for brokers or investment activities. Similarly, regulating broker commissions falls under the broader regulatory functions of real estate governing bodies, rather than being a purpose of the compensation fund itself.