What penalty could be imposed on an unlicensed individual who received payment for negotiating a real estate transaction?

The correct answer reflects the legal consequences established by the Kentucky Real Estate Commission (KREC) for unlicensed individuals engaged in real estate transactions. Under Kentucky law, individuals who conduct real estate activities without a valid license are subject to penalties designed to deter such unlawful behavior.

Receiving payment for negotiating a real estate transaction is a serious violation that undermines the integrity of the real estate profession. The law imposes significant fines to emphasize the importance of licensing in ensuring that all practitioners meet specific educational and ethical standards. In this case, the penalty of a fine of $1,000, along with an additional fine equal to the commission earned without a license, serves to not only penalize the unlicensed individual but also to recoup any gains obtained through unlawful practices.

The other options, while they represent possible enforcement actions or penalties, do not align with the established legal framework for significant infractions such as accepting compensation for real estate services without the requisite license. The fine structure in option C is designed to be both a punitive measure and a deterrent against future violations, reinforcing the necessity for licensing in maintaining professional standards in real estate transactions.