He looses his 10% deposit (here in VA/MD) and is legally liable for any difference in price when it is resold by the trustee weeks later.The trustee/seller claims the investor did not perform his/her due diligence by researching the payoff of the 1st note so the trustee/seller is exempt from wrong doing.  

Rather than fight and think about the moral wrongdoings of this individual for the rest of my week, I paid him.

And that doesnt absolve the agent of any wrongdoing if the broker allows something if the commission deema it illegal, it merely draws him into the mess as well.

Each state has regulations on when an IRA account that is buying/flipping reaches "dealer status" (usually more than a handful of transactions per year, check with your own state) at which point it is no longer involved in passive investing, but will be considered a real estate operating company, subject to UBIT whether or not there is leverage in the picture.Sorry, but I believe this is just flat wrong.

I think you asked the question because you know it's wrong.  

But if I have something seriously wrong, do you think I will trust my physical health to someone who is unlicensed?

Also, I did a bit of research and there seems to be less natural disasters there vs other big cities in Tx like Houston and Dallas, correct me if I'm wrong. 

As their attorney (and the title agent), he had full access to whatever he thought was "unethical" but he could never pinpoint it, nor provide any accurate or actual verification of wrong doing.

Do I start an LLC per property so my entire portfolio doesn't come under fire if something were to go wrong?

It's extremely rare that they take responsibility for any mistake or wrongdoing.