You do not want to expose yourself to the unnecessary (and endless) liability of hiring unlicensed workers for what you're describing as full home renovations.

In an unlicensed transaction, what recourse do I have to prevent this?

Some brokerages use unlicensed assistants to answer the phones (which, at least in NJ, means all they can do is take a message if somebody is calling about a property), but then there is a fee applied to all agents to basically cover that expense.Definitely look closely at what is your bottom line yearly amount of fees/dues. 

The alternative would be to find someone unlicensed/unbonded whish would be cheaper, but would be a gamble.

I think by being an unlicensed person in that situation that contract law would prevail.  

Why do they seek out unlicensed labor?

Unlicensed contractor agreed to do work, then moved his family in and never did the agreed upon work.

I started as a unlicensed assistant at 17 and I didn't go to college because I was going to be a realtor and I worked for her until I was able to get my license at the age of 21.

(In TN, a PM firm may be owned/run by an unlicensed person - as long as there is a licensed broker registered for it with TREC.

Toby does a great job selling the firm and giving away free advice on Tax Tuesdays but after that I read on Yelp some reviews of not so stellar service, you get pawned off to a unlicensed employee and have to keep following up, reiterating your questions, and nobody cares.