I bet if their attorney knew EXACTLY what was done, they could possibly go after the "buyer"...or rather the unlicensed broker playing agent. 

By doing wrong they are, literally, "acting as an unlicensed agent / broker".They're also doing something arguably illegal: they have the right to sell their position in the contract.

Ocwen agreed to pay $900,000 to the state of Washington after an investigation conducted by the state found that Ocwen used unlicensed companies in India and the Philippines to service mortgage loans.""

Even with a valid and reliable contractor team if you do not have  10 to 15% contingency fund built in to the profit model on purchase price you could get into trouble.If you go cheap using the unlicensed contractors then stop work orders, extra time, and paying for redoing with the right team can be way more expensive in the long run.Margins tend to be smaller.

It gives unlicensed investors an opportunity to pull comps off the MLS as well as providing them a way to do their own due diligence.

Do they know you are unlicensed?

You might consider attending a meeting of the Central Arkansas Real Estate Investors Association to see whether you might still be able to find ways to earn money in real estate without violating criminal prohibitions against engaging in unlicensed real estate activity.Best of luck in your new adventures.   

@Zach Evanish  cool that's good to know you probably know much of your competition in this space is unlicensed.. although I see some start to get licenses these days.. but many still hide behind consulting fees on the hud.. 

Be sure to inquire on the State+Fed regulations on selling shares - - the SEC(Security & Exchange Commission) can get very upset and charge you with unlicensed brokering.

now for me if what your saying is accurate.. the state of OHIO cracks down on unlicensed agents/wholesalers.. this guy if NOT licensed and you don't hve a listing agreement. they have violated the RE laws.