Which of the following statements about the recovery fund is false?

The statement indicating that the commission prefers to disburse from the recovery fund rather than sanction a licensee is not accurate. The primary purpose of the recovery fund is to provide a financial remedy for consumers who have suffered losses due to the actions of a licensed real estate professional. The fund serves as a protective measure for the public rather than as a substitute for disciplinary actions against licensees who violate laws or regulations.

When the commission faces a situation involving a licensee's misconduct, their primary goal is to uphold the integrity of the real estate profession, which may involve sanctions such as fines, suspension, or revocation of a license. Disbursing funds from the recovery fund is not typically seen as preferable; rather, it is a remedial step taken under specific circumstances where a consumer has been financially harmed and has no other means for recovery.

Understanding this context highlights the importance of maintaining professional standards in real estate practice while providing a safety net for consumers, rather than suggesting that financial disbursement is preferred over sanctions.