Chapter 8 - THE LAND PAPERS
The property-transfer papers were more dangerous than Ethan realized.
They did not simply transfer title.
They:
contributed the land to Haven Crest Holdings,
granted management control to Ethan’s company,
authorized a development mortgage,
and limited Margaret’s right to force a sale for seven years.
In return Margaret received a minority preferred interest.
On paper, sophisticated.
In reality, she would exchange:
personally owned land,
full control,
and low leverage
for:
project risk,
minority governance,
and illiquidity.
Denise asked:
“Who represented Margaret in drafting?”
Ethan’s lawyer looked uncomfortable.
“The company attorney prepared the documents.”
“Independent counsel?”
“No.”
“Appraisal chosen by whom?”
“Haven Crest.”
“Did Margaret approve the valuation?”
“No.”
Denise closed the folder.
“Then this was not a family favor. It was a conflicted transaction you were trying to push through without independent advice.”
Ethan shouted:
“She’s my mother!”
May you like
Denise answered:
“Exactly why independent advice mattered.”
