The sole question is what OP contracted for. Many contracts have liquidated damages clauses and they are entirely legal in all 50 states (I am presuming that OP is in the USA and the property in question is in the USA).
Bottom line, read the t&c. If it includes a $400 cash cancellation fee and you don't like it, don't book it. But, once you agree to it by checking the little box, you've agreed. If you haven't read everything, that's fine too. Just don't expect that your decision not to read gets you off the hook.
The air ticket example doesn't work because no carrier I know of does what OP suggests. But, a carrier could. It would simply need to disclose the deal in its COC & fare rules, e.g., "if you no show on your $100 ticket, you owe us $1,000 and you authorize us to charge your CC on file for the $1,000."