A Brazilian businessman is suing a prominent real estate company, claiming he was deceived into selling his Miami Beach mansion for $6 million less than its true worth.
According to a lawsuit reported by The Wall Street Journal, Leo Kryss, co-founder of the Brazilian toy and electronics company Tectoy, alleges that the real estate firm Douglas Elliman misled him during the sale of his luxury property, which was ultimately purchased by Amazon founder Jeff Bezos.
Kryss had initially listed his seven-bedroom, 11 ½-bathroom mansion, spanning 19,000 square feet and located in the exclusive Indian Creek Village, for $85 million.
However, according to the lawsuit, Douglas Elliman told Kryss that the prospective buyer was unwilling to pay more than $79 million. Kryss, unaware that the buyer was Bezos, agreed to sell the property for the lower amount.
The lawsuit, filed in July, reveals that Kryss had specifically asked Jay Parker, CEO of Douglas Elliman, whether the buyer was Bezos. Parker allegedly assured him that Bezos was not involved in the deal.
Only later did Kryss learn that Bezos had indeed purchased the property, prompting him to sue the real estate firm for the $6 million he believes he lost due to the misinformation.
The legal case highlights the importance of transparency in high-profile real estate transactions, particularly when dealing with wealthy buyers.
As Miami real estate agent Danny Hertzberg told The Wall Street Journal, “Wealthy individuals often shield their identities throughout the process of purchasing a home… Many billionaires, when they’re purchasing a property, are concerned that when the seller knows their identity, they’re going to want a larger number.”
Jeff Bezos announced his relocation to Miami from Seattle in February last year. His new residence is situated on Indian Creek Island, a gated community known as “Billionaire Bunker” due to its high-profile residents, including Tom Brady, Jared Kushner, and Ivanka Trump. Bezos now owns over four bayfront acres on the island, adding to his extensive real estate portfolio.
Kryss’s lawsuit, based on fraud allegations, seeks to recover the difference between his original asking price and the final sale price, arguing that he was deceived into forfeiting millions.
Last modified: September 14, 2024
