Did Seller Hide $7M Elevator Improvement Charge?
Highland Beach -- A couple who purchased a luxury
condominium for $3.65 million last year is now suing the
seller, claiming he failed to disclose a looming special
assessment that left them with a surprise $91,595 bill.
Eugene and Debbie Friedlander allege that Mark Kaplan knew
about the planned assessment for a multi-million dollar
elevator replacement project but did not mention it before
they closed on the property.
The lawsuit, just filed in Palm Beach County Circuit Court
and obtained by BocaNewsNow.com, centers on a clause in the
sales contract signed on May 4, 2024. In the contract’s
Condominium Rider, Kaplan allegedly stated that he was “not
aware of any special or other assessment” that had been
discussed or minuted by the condo association in the
preceding 12 months. The contract said that if any
undisclosed assessments existed, the seller would be
responsible for paying them in full at the time of closing.
According to the complaint, the Toscana South Condominium
Association had been planning the assessment for months
prior to the sale. The planned $7 million elevator
replacement was an agenda item at a board meeting on
February 28, 2024, and was reported in the meeting’s
minutes. The suit also claims the association’s general
manager notified all unit owners, including Kaplan, about
the planned assessment in March 2024, three months before
the Friedlanders closed on the unit on June 5, 2024.
Documents filed with the court allege the condominium’s
elevators were over 20 years old and the manufacturer warned
that parts were becoming obsolete. The condo board memo
explained that a special assessment would be necessary to
fund the replacement project, estimated to cost between $5
and $7 million, to avoid depleting the association’s reserve
funds. The suit states that the Friedlanders were formally
notified in October 2024 that the assessment had been levied
and their share was $91,595.
The Friedlanders are suing for breach of contract and breach
of the implied covenant of good faith and fair dealing. They
allege that after demanding Kaplan reimburse them for the
assessment, he has “failed and refused to do so.” The
lawsuit seeks to recover the full amount of the assessment,
as well as attorney’s fees and court costs.