Landlocked: They paid $350k for a lot – but they may not be able to build on it

What seemed like a great investment opportunity in South Florida’s hot real estate market now has one couple asking for their money back.

“We (are) hoping that this will be soon, this nightmare will be over,” the buyer, Hani Levy, told NBC6 Investigates.

A nightmare, Levy said, started as a dream for her and her husband, who owns a construction company. The plan was to invest and develop homes in their Fort Lauderdale neighborhood after seeing a vacant lot for sale around the corner from their home.

Levy shared the listing for the property, which they purchased in September 2023. It advertised the lot for “new construction, build to suit residential.” Levy said she and her husband reached out and purchased the property for $350,000.

Levy said they contacted the realtor and shared what they wanted to do with the lot.

She said the plan was to develop two to three homes. But there was a problem, which she said no one ever told her about. 

The road used to get to the property is not public. That means, technically, they don’t have a way to access their own lot. 

The lot is located at 2950 SW 17th Place, which happens to belong to the properties with homes on the other side of the narrow roadway. 

“I found out that I don't actually have a legal access to this road,” Levy said.

She was told the lot itself was landlocked, with no access to the public street on SW 30th Terrace.

“That means that all our dreams, out of the windows,” she said.

The couple filed a lawsuit in February against the seller and real estate agent, alleging they failed to disclose “critical limitations, specifically the lack of road access…” that would prevent development.

“I do think that huge piece of information was hidden from me,” Levy said.

The attorney representing both the seller and her agent told NBC6 Investigates they deny all claims made in the lawsuit.  

It appears the seller did make an effort, before the sale, to make sure someone could build on the land. Their attorney filed a document releasing the lot from a restrictive covenant, which would have prevented new construction. 

Levy shared several emails she sent to the city asking about the possibility of developing on the lot and says she also went in person to get information.

After the sale, she says she received an email from the zoning department, saying the city “requires access to a public right of way…” adding, “It appears the lot may be unbuildable.”

“There is so many things that they could have done to avoid this,” Levy said.

A spokesperson for the city of Fort Lauderdale provided this statement from the city’s Development Services Department:

“Prior to the purchase they were provided with general information about the property’s zoning district. The City was not asked to review the actual site. Any private real estate transaction is between parties that includes certain disclosures to be made and information shared in good faith between the seller and purchaser. 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. 

In this case the purchaser was provided general information about the zoning district’s permitted uses and development standards. Following the purchase, the new owner approached the City with a specific development plan and the owner was provided feedback on the obstacles to development as well as potential solutions to overcome those obstacles. The City continues to work with the owner and understands the unique circumstances they face.” 

Levy says in the meantime, she and her husband negotiated with a neighbor to add a strip of land to their lot, which now reaches the public street. They hope that extension of their property will give them the greenlight to build. 

“We still don't have a clear answer with the city if they are happy,” Levy told NBC6, “If this is good enough.”

The couple said they also approached neighbors who own the private street and asked if they could purchase a portion in order to get access to their lot. But those homeowners declined. 

When NBC6 Investigates visited the lot, some of the people living in the area expressed concerns that new construction on the lot would put neighboring properties at greater risk of flooding, which is already a problem on their street.