In essence the fee is a punishment not compensation for damages.

For example, as of March 2021 any violation of the short-term rental ordinance for an illegal short term rental in Honolulu, Hawaii is punishable by an initial fine of $1,000 and a fine of $5,000 per day for each day violation persists…which escalates to $10,000 per day for each day the violation persists for recurring violators.

The one that would be punished is LP multifamily investor. 

And we answer to a real estate commission if we are unethical, similar to the contractor's licensing agencies that can punish sketchy contractors.

While CD increases to 6% this week.It's almost that everything that needs actual hard work is being punished by the government. 

We are punished more severely for "screwups" and the potential that you have as a licensee is greater than the general wholesaler.The Ethics Question About ListingTo answer your question....

If you put a house under contract with false pretense or KNOWING you can’t afford to close on it or have no intention to, it’s illegal and punishable with pretty hefty fines.

But know going in, ignorance will be severely punished as commercial financing weighs as heavily, if not more, on the operator than the asset themselves.

Real Estate Activities Requiring LicensureIn Florida, it is unlawful to engage in the following real estate related activities for compensation without possessing a real estate broker’s license or sales associate license.Advertising or marketing another person’s timeshare or property for compensation.Auctioning or attempting to auction another person’s property for compensation.Buying or attempting to buy real estate on behalf of another person for compensation.Listing another person’s timeshare or property for compensation.Operating as a real estate broker or sales associate without a license.Renting, leasing, or attempting to rent or lease real estate on behalf of another person for compensation.Penalties for Unlicensed Practice of Real EstateThe crime of Unlicensed Practice of Real Estate is a Third Degree Felony and assigned a Level 1 offense severity ranking under Florida’s Criminal Punishment Code.If convicted of Unlicensed Practice of Real Estate in Florida, a judge can impose any combination of the following penalties:Up to five (5) years in prison.Up to five (5) years of probation.Up to $5,000 in fines.Defenses to Unlicensed Practice of Real EstateIn addition to the pretrial defenses and trial defenses that can be raised in any criminal case, specific defenses to the crime of Unlicensed Practice of Real Estate are:For Sale by OwnerA person who personally owns real estate or a timeshare may sell, rent, or dispose of the real estate or timeshare without being licensed.Likewise, a person may buy or rent real estate for them self from another person without being licensed.I HAVE NEVER SEEN AN UNLICENSED BROKER THAT WAS NOT VIOLATING BROKERAGE LAWS.

I suspect this policy is created for something else lol maybe to punish China.