A homeowner who sold his Miami mansion for less than asking price sues realtor for not revealing Jeff Bezos was the buyer.
A Miami homeowner is suing the realtor who helped him sell his mansion to Jeff Bezos, the founder of Amazon.
The mansion, located in an exclusive area known as Indian Creek Island, sold for $79 million, which was less than the asking price of $85 million.
The seller, Leo Kryss, claims he lost money because the realtor did not inform him that Bezos was the buyer.
The homeowner listed his mansion for $85 million.
Leo Kryss co-founded a Brazilian toy and electronics company called Tectoy.
He owned a luxurious mansion with seven bedrooms and fourteen bathrooms.
The property covers 2.8 acres and is known for its waterfront views.
It has amenities like a wine cellar, a library, and a theater. Kryss bought the mansion in 2014 for $28 million.
In May 2023, Kryss decided to sell the mansion and listed it for $85 million.
Shortly after, Jeff Bezos made an offer of $79 million.
Kryss was unaware that Bezos was behind the offer and later asked the realtor if the Amazon founder was the buyer.
The realtor, Douglas Elliman, allegedly assured him that Bezos was not involved.
Miami homeowner sues realtor for not disclosing Jeff Bezos was buyer of his $79M mansion
Kryss has filed a lawsuit against Douglas Elliman, claiming that they misled him during the sale process.
According to the lawsuit, the CEO of Douglas Elliman, Jay Parker, personally told Kryss that Bezos was not the buyer.
This information, Kryss argues, was crucial to his decision-making and negotiations.
“It was highly material to his negotiations and his decision on the ultimate sales price to know whether Bezos was attempting to anonymously acquire the home to assemble it with the adjoining property,” the lawsuit claims.
After the conversation with Parker, Kryss agreed to lower his asking price by 7.1%.
He believed that if he had known Bezos was the buyer, he would not have reduced the price.
The lawsuit states that this information was “highly material” to Kryss’s negotiations and affected the final sale price.
Reactions from the real estate community
In real estate transactions, it is common for wealthy buyers to keep their identities hidden.
This practice helps prevent sellers from inflating prices based on the buyer’s fame or wealth.
Realtors often advise clients to focus on the offer rather than the buyer’s identity.
“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,” Miami real-estate agent Danny Hertzberg told the WSJ.
However, Kryss argues that knowing Bezos was involved would have changed his approach to the sale.
Kryss’s attorney, Dana Clayton, stated that Douglas Elliman failed to fulfill their responsibilities to Kryss.
She emphasized that the realtor should have known who the ultimate buyer was and should have disclosed that information.
“They knew, or should have known, who the ultimate beneficial purchaser was and misrepresented that very important fact to our client,” she added.
Jeff Bezos relocated from Seattle to Miami recently.
Jeff Bezos purchased the mansion as part of a larger move to Miami.
He has been making headlines for relocating from Seattle to Florida.
Bezos also bought a neighboring property for $68 million, which is a three-bedroom, three-bathroom home.
His move has attracted attention, not only because of his wealth but also due to the high-profile nature of the Miami real estate market.