Aug 27, 2024
Hani Levy and her husband, who owns a construction company, thought they were making an investment in their Fort Lauderdale, Florida neighborhood. But after spending $350,000 on an empty lot, they are now facing a real estate nightmare.
Initially advertised as suitable for new residential construction, the couple bought the lot with plans to build two or three houses — something they shared with the real estate agent.
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However, shortly after the purchase, they discovered a significant challenge — the lot was landlocked. The only road that led to their property was owned by the existing homes that surround it and not available for public use — a detail that was never disclosed by the seller or real estate agent. This left them with no legal access to their lot.
The unforeseen obstacle not only stalled their dreams of development, but also resulted in a legal battle against the seller and their real estate agent.
“We (are) hoping that soon, this nightmare will be over,” Levy told NBC6 Investigates. “All of our dreams are out of the window.”
No firm road access solution
The Levys were clear about their development plans before they bought the lot, and the seller made an effort to ensure the land could be developed. The seller's attorney filed a document releasing the lot from a covenant that prevented new construction before the couple went through with the sale. Levy also sent several emails to the city asking about developing on the property — and even went in person to get more information.
But after the purchase, Levy says she received an email from the Fort Lauderdale zoning department saying the city “requires access to a public right of way…” and that “It appears the lot may be unbuildable.”
A spokesperson from the city's Development Services Department told NBC:
"The City may be a resource used by a buyer when doing their due diligence about the property’s development potential. Understanding the City’s zoning regulations including permitted uses and development standards is often part of a purchaser’s due diligence. Ultimately, it is up to the purchaser to use the information available to make a final decision."
With no solution in sight, the Levys also tried negotiating with their neighbors to purchase part of the private road to gain access to the lot. While none of them went for this idea, given their concern over flood risk, one neighbor was willing to offer the couple a small strip of land from their property. That way, they now own a portion of land that reaches a public street, but it's not clear if it's enough for the city.
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“We still don't have a clear answer with the city…if this is good enough,” Levy told NBC6.
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How to avoid similar issues when purchasing a property
The Levys' situation raises important questions for prospective buyers. How could such a large oversight occur? Here are a few steps buyers can take to protect themselves.
Hiring professionals before the purchase can make a huge difference. While the Levys did ask about the development potential, it's not clear if they hired a real estate attorney or land surveyor before closing. These professionals help ensure you understand exactly what you're purchasing and uncover any potential challenges, such as lack of access and construction permissions.
A deeper understanding of local zoning and easement laws may also have prevented this issue. Florida easement laws make some provisions for landlocked property to receive developments "by means of the nearest practical route."
In other words, this type of agreement can allow a property owner to enter a predetermined portion of another’s land without needing their permission. Had the Levys known to ask about an easement or known the lot was landlocked from a survey, they may have been able to carve out a legal access point beforehand — or backed out of the purchase before it was too late.
Finally, buyers should always consider purchasing title insurance. While most mortgage companies require this, the Levys purchased the land outright and may not have considered the option. Title insurance protects against any limitation in the title, including liens and sometimes easement challenges, depending on the context.
Instead, the Levys will have to wait and see what the city makes of their workaround.
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
