A homeowner from Miami, Florida is suing his realtor for selling his mansion to Jeff Bezos at a discounted price. Brazilian mogul Leo Kryss filed a lawsuit against Douglas Elliman, the firm that handled the sale, alleging its CEO lied to him about Bezos not being the buyer. Wall Street Journal, which first reported the case, said that the 2.8-acre estate was initially listed for $85 million but sold at a discounted price of $79 million. Bezos is not involved in the lawsuit.
The second-richest man in the world needs a bargain
Kryss, the co-founder of Brazilian toy and electronics company Tectoy, had originally bought the waterfront, 7-bedroom, 11.5-bathroom estate for $28 million in 2014, the Journal reported.
The amenities of the estate included a wine cellar, pool, a theatre, a library, and access to Miami’s elite Indian Creek Village. Known as the "Billionaire Bunker", the neighborhood is home to a number of famous residents, including Tom Brady, Jared Kushner, and Ivanka Trump, as per the Miami Herald.
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In his lawsuit, Kryss alleged that he wouldn't have offered any discount on his listing price had he known that Bezos was the buyer. He accused Douglas Elliman CEO Jay Parker of specifically telling him that the Amazon founder wasn't the buyer.
Parker also allegedly asserted that the buyer was not willing to pay more than $79 million for the home, the lawsuit said. Because of the assurance, the imposed misrepresentations, and reliance upon Parker, Tendencia Asset Management, which negotiated the deal on behalf of Kryss sold the home at a discounted price. Business Insider reported that the firm made about $3 million in commission from the deal.
“Douglas Elliman failed to fulfill their duties to our client.… They knew or should have known who the ultimate beneficial purchaser was and misrepresented that very important fact to our client," Dana Clayton, an attorney for Kryss, told the Journal.
A common strategy
In several reports, realtors suggested that it is a common strategy for wealthy buyers to shield their identity throughout transactions. The anonymity helps prevent the buyers from artificially inflating the prices of the properties or from refusing to negotiate.
Bezos purchased multiple properties in the Billioniare's Bunker after he announced that he was leaving his longtime hometown of Seattle for Miami. In the lawsuit, Kryss says that Bezos already owned the property next door, which is why he would have been more inclined to deny cutting a deal for the tech billionaire. According to a Page Six report, Bezos ultimately acquired the adjacent properties for a total of $147 million.
Bezos even scooped up a third property on Miami’s elite island for a staggering $90 million, Bloomberg reported earlier this year. In an off market deal, Bezos got his hands on the resort-style manor that features a plush yard overlooking the ocean with manicured gardens and a guesthouse.
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Sources told the New York Post that the billionnaire planned to live in the mansion till the demolition of his other two waterfront mantions was completed.
