He purchased it from a retiring state representative. The real estate agent was another lawmaker. And the legal partner of a third legislator was the closing lawyer.

All involved say it was a straightforward business deal.

But ethics watchdogs say the deal raises questions about a possible conflict of interest, especially because reports surfaced that Beason once loaned $500,000 to former House Speaker Jim Black.

"It definitely bears more scrutiny," said Bob Hall, research director of Democracy North Carolina, a nonpartisan campaign reform group.

Beason, once one of the state's top lobbyists, retired last week after losing several major clients following news of the loan, which is under investigation by Wake County prosecutors.

The condominium deal has attracted similar criticism in recent weeks.

Built in 1985, the condo is in the Bishops Ridge complex in Raleigh's Brooklyn neighborhood, a popular spot among lawmakers looking for a home away from home during the session.

Republican Rep. Theresa Esposito was such a tenant. First elected in 1985, she quickly grew tired of staying in motels or driving to her home in Winston-Salem late at night after a legislative meeting.

'Ideal location'

Her husband, Alfred, said they thought the condo was in "an ideal location" -- close to the legislature, not far from a major road leading out of town and next to a grassy park.

When Esposito retired from politics in 2002, she and her husband decided to sell the condo. Alfred Esposito said he chose Rep. Julia Howard, a Mocksville Republican, to help sell the property because he knew her.

Howard, a real estate agent, said she frequently helps fellow lawmakers buy and sell properties, even though her firm is in Davie County.

Howard said she spread the word around the legislature and showed the condo to a few interested buyers, although she did not list it on the Multiple Listing Service commonly used by real estate agents.

Rep. Roger West, a Republican from Cherokee County, and lobbyist Roger Bone, whose home is in Rocky Mount, said they both heard about the condominium and considered buying it.

But Beason was the first person to make an offer. Alfred Esposito said his $142,500 offer was close enough to the $150,000 asking price that he accepted. He said his wife was not involved, and he did not know who Beason was.

"In a household, husband and wife take on certain duties," said Alfred Esposito, 84. "Wives cook dinner, wives wash the clothes, men throw the garbage out. In my family, I throw the garbage out, but I also handle the financial matters."

Beason allowed Howard to act as the broker for him as well as the Espositos, which meant that she earned the full 6 percent commission, or $8,550, on the transaction.

The closing lawyer was John Cargill, at the time a law partner of then-Rep. Bob Hensley, a Raleigh Democrat. Cargill, who often handles real estate closings, said Hensley or Hensley's wife might have given him the referral.

Howard said she earned the commission by doing her job.

"There was nothing weird here," she said. "The whole thing was very aboveboard."

Wade Smith, a Raleigh lawyer who is representing Beason on the loan investigation, said he has carefully looked over the records of the condo transaction and has not seen anything unusual.

"It seems to me that it's a very straightforward business transaction," he said.

Business listing

Beason listed the condo under his business name, The Capitol Group, on real estate forms. However, he rarely worked out of it, and the property is zoned residential, meaning that kind of commercial use is prohibited.

Hall said legislators and lobbyists should be careful about business transactions. But he also said the 2002 deal may be getting more than its share of criticism because of more recent ethics problems at the legislature.

"In some ways, the watchdogs and the media are beating up on people for doing things that seemed fairly trivial and innocuous at the time," he said.

Get $150+ in coupons in every Sunday N&O. Click here for convenient home delivery.