MIAMI – An appellate court case in South Florida has garnered attention from a wide spectrum of stakeholders in the real estate industry. The lawsuit revolves around a case concerning Biscayne 21, an aging condominium building situated on prime oceanfront real estate.

Despite its outward appearance, Biscayne 21 stands vacant and in deteriorating condition. Recently, a new developer purchased the majority of units with plans to demolish the building and erect new housing. However, 10 condo owners, representing 5% of the building, are resisting the termination of their contracts, leading to a legal showdown. Rep. Vicki Lopez, R-Coral Gables, emphasized that such condo terminations are common for older buildings like Biscayne 21, many of which struggle financially to meet required repairs and bring structures up to code. The crux of the legal dispute hinges on the allegation that the developer, Two Roads Development, unlawfully altered the termination threshold in the original agreement documents.

Typically requiring 100% agreement among unit owners, the disputed change purportedly reduces this threshold to 80%, a modification absent from Biscayne 21’s initial agreement.

Lopez highlighted the potential ramifications of the ruling, indicating that it sets a “dangerous precedent” for property owners statewide. If upheld, it could empower a single holdout to derail redevelopment plans, leaving other stakeholders stranded.

The lawsuit has left the developers in limbo, who already completed a bulk buyout of the property and are now unable to proceed with their envisioned project. Meanwhile, the holdout owners are seeking significant damages, amounting to hundreds of millions of dollars.

Expressing concern over the broader implications, Lopez underscored the potential impact on property rights across the condo industry. She vowed to pursue legislative action if the courts do not reverse the ruling.