Which statement about the Recovery Fund is true?

The statement that the Recovery Fund pays only actual losses is accurate because the primary purpose of the Recovery Fund is to provide compensation to consumers who have suffered financial loss due to the actions of a licensee in the real estate industry. Actual losses may include the amount lost from a fraudulent transaction, but the fund does not cover additional costs such as punitive damages or attorneys' fees.

This aligns with the fundamental objective of the Recovery Fund, which is to offer a safety net to consumers rather than to serve as a source for additional penalties or legal costs associated with a dispute. Recognizing that the fund's intention is solely to restore the financial losses incurred by consumers helps clarify its limitations in covering other forms of damages.