Final answer:
A regulatory body or commission protects the public in real estate transactions by ensuring that real estate license holders adhere to legal and ethical standards, regulating sales of securities, and maintaining the integrity of the market.
Step-by-step explanation:
The entity that serves to protect the public in real estate transactions involving a real estate license holder is typically a regulatory body or commission. This organization ensures that license holders are conducting business in a lawful and ethical manner and are adhering to established rules and regulations. One of the key functions of this body is to regulate and supervise the sale of securities and the professionals who sell them, including brokers, dealers, and bankers. Additionally, to ensure legal transactions, it is necessary for individuals or firms to own property rights, which include the capacity to enter into contracts concerning that property. This regulatory framework helps maintain the integrity of the real estate market and protects consumers from fraudulent activities.