Headline, February 28, 2024, The Dallas Express: TX Rep Allegedly Set Up Corrupt Real Estate Deal
Holland (R-Rockwall) was appointed receiver for the property of a deceased woman in Rockwall in December 2021. This meant he was in charge of issuing the sale of the property for the woman’s children. He allegedly cut a deal within two weeks of his appointment to sell a 4-acre property to his former colleague [Brian Berry, former mayor of Heath and fellow coucilmember] for $750,000, which the family said was a $1.2 million discount on the real estate listing.”
“It can reasonably be inferred that the Receiver had agreed upon the terms of the East Fork Contract before January 5, 2022, which suggests that he had reached an understanding with the purchaser on the sale price on or before December 30, 2021, the date he formally qualified as Receiver,” the motion to remove Holland as receiver read.
“Further, the purchaser on the East Fork Contract is believed to be an entity whose principal owner is a person who is a current or past business associate of Mr. Holland,” it continued. “If true, a sale to a business associate, absent an appraisal to support the sale price, would cast doubt on whether the proposed sale was an arms-length transaction, and whether the Receiver had a conflict of interest.”
Excerlpts, The Dallas Express, February 28, 2024, TX Rep Allegedly Set Up Corrupt Real Estate Deal
Arm’sLength Transaction – A Legal Definition
“Arm’s length” is an expression which is commonly used to refer to transactions in which two or more unrelated and unaffiliated parties agree to do business, acting independently and in their self-interest. In transactions “at arm’s length”, the parties involved should have equal bargaining power and symmetric information, leading the parties to agree upon fair market terms. In contrast, a transaction not conducted “at arm’s length” may happen between parties that may have a personal or close relationship; for example, transactions between family members, personal friends, or the parent company and its subsidiaries. Learn more from Cornell Law School, Legal Information Institute
Code of Ethics and Standards of Practice of the National Association of Realtors®
Article 1, Standard of Practice 1-3: Realtors®, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
“I would forget it fain,
But oh, it presses to my memory,
Like damnèd guilty deeds to sinners’ minds.”
William Shakespeare, Romeo and Juliet
John White
Rockwall, Texas
John N. White 