No News Isn’t Necessarily Good News When It Comes to Real Estate Transactions: Lessons from a Fort Lauderdale Land Deal
By: Tim O’Neill, Partner
Real estate transactions are often one of the most significant investments individuals make in their lifetime. However, these transactions can become costly mistakes without proper due diligence. A recent case in Fort Lauderdale highlights the importance of thorough research and understanding before finalizing any real estate purchase.
In September 2023, Hani Levy and her husband, Maikel Gil Hernandez, purchased a vacant lot in Fort Lauderdale for $350,000, with plans of building three new homes. The lot was advertised as “new construction, built to suit residential,” making it seem like the perfect opportunity. However, after purchasing the property, the couple faced a significant problem: the property is landlocked, meaning there is no public access to the lot. The only road leading to the lot is private, owned by the homeowners on the other side of the narrow roadway.
After unsuccessfully attempting to purchase a section of the road from the neighboring homeowners, Levy and her husband filed a lawsuit against the seller and the real estate agent. The lawsuit accuses them of failing to disclose the lack of public access to the property.
This unfortunate situation underscores several essential steps buyers should take to protect themselves in real estate transactions. For one, a survey would have played a vital role in preventing the purchase of landlocked property. Ordering a study is essential, even if you pay cash. Hani Levy and her husband paid cash; therefore, no bank required the survey. A survey clearly defines the property’s exact boundaries, showing its relationship to neighboring parcels. It includes details about existing roads, paths, or easements that provide access to the property.
In this case, a survey before purchase could have revealed discrepancies between the legal description of the property and its actual rights of access. By comparing the survey with the legal description provided in the sale, the buyers could have identified any inconsistencies or omissions, such as the lack of access. This documentation could have been used to negotiate with the seller or even avoid the purchase altogether.
Ultimately, Levy sacrificed a portion of her land to give a neighbor a pool in exchange for a road easement. They estimated this would add an extra $150,000 to the project’s cost. If they had not reached an agreement, they could have sought relief under Florida Statute § 704.01, providing a common law or a statutory way of necessity. While the law does not favor landlocked property, in the case of a statutory way of necessity, you must pay a reasonable price for the right of use. This would require the landlocked owner to sue their neighbors and pay them if they won. An ounce of prevention is worth a pound of cure.
Real estate transactions can be complex, and mistakes can be costly. Whether buying land, a home, or a commercial property, investing in a thorough survey is critical in protecting your interests. Levy and her husband’s situation starkly reminds us of the importance of due diligence and professional guidance. It also underscores the empowering effect of a thorough understanding of property rights. Knowing your rights and potential risks can help you make informed decisions and safeguard your investment.
Working with experienced real estate attorneys, like the team at Pike and Lustig, can help you understand and manage the complexities of property transactions. We can identify potential red flags, ensure all necessary disclosures are made, and help you understand your rights and options if something goes wrong. With offices throughout South Florida, Pike and Lustig are here to assist you in making informed decisions and safeguarding your investment. If you’re considering a real estate purchase, contact us to learn how we can support you.
