Miami homeowner sues city over alleged forced land transfers tied to building permits

Stuart Elliott, Editor-in-chief & CEO
Stuart Elliott, Editor-in-chief & CEO
0Comments

A Miami homeowner has filed an amended lawsuit against the city, alleging that municipal officials are attempting to take private property through what he describes as an abusive permitting process. The legal action claims this practice could impact more than 1,000 homes in the city.

Charles “Chad” Trausch initially sued the city eight months ago after being told he must transfer a portion of his front yard to the city for public right-of-way before receiving a permit for a home addition. Trausch, who bought his Buena Vista neighborhood house with his wife Stephanie in 2021 for $710,000, sought to expand their home when expecting a child. According to court documents, the city would not issue a permit until Trausch agreed to deed part of his property.

“For twenty months, the city withheld [Trausch’s] permit because he refused to give up half his front yard,” the lawsuit states. Once Trausch hired attorneys, “the city suddenly decided to ‘approve’ [Trausch’s] waiver request” without explanation.

During this period, construction costs increased significantly. His lawyers estimate it will now cost over $200,000 to complete the planned addition.

Attorneys Ari Bargil and Suranjan Sen from the Institute for Justice are representing Trausch. In their complaint they allege that Miami has been “systematically extorting hundreds of Miami residents.” They claim more than 1,000 homes on 66 streets may be affected by similar demands from the city.

A spokesperson for Miami said they would respond to The Real Deal’s request for comment but have not yet provided any statement.

The lawsuit argues that expanding public right-of-ways requires compensation under U.S. law and accuses Miami of violating constitutional protections regarding private property and due process. It alleges that while base building lines restrict where owners can build but still retain ownership of land beyond those lines, the city is instead demanding permanent deeds for these areas during permit applications.

The Institute for Justice cites testimony from a city employee in another federal case indicating there have been “hundreds” of such demands on homeowners over several years. According to their account, Miami is collecting these properties—known as landbanking—in preparation for possible future road widening projects.



Related

Alex Karp, CEO of Palantir Technologies Inc.

Palantir CEO Alex Karp purchases neighboring waterfront home for $28.5 million

Alex Karp, CEO of Palantir Technologies, has expanded his real estate holdings on Miami’s Venetian Islands with a recent purchase worth $28.5 million next door to his existing property. This brings his total investment on the street close to $75 million amid rising interest from other tech billionaires relocating or investing heavily in South Florida.

Donald J. Trump, U.S.A President

Miami judge disqualified from Trump library case after courtroom hug

A Miami judge was removed from overseeing litigation about Miami Dade College’s land donation for Trump’s planned library due to concerns over impartiality after hugging the plaintiff. The removal comes amid scrutiny of large donations and plans for a major development bearing Trump’s name.

Pierre Gasly of Alpine

Formula 1 drivers and developers focus on Miami real estate during Grand Prix week

Formula 1 drivers are increasingly investing in luxury properties across Miami as developers leverage major sporting events like the Grand Prix to attract wealthy buyers. Developers hosted exclusive parties while brokers used race weekend as an opportunity for marketing efforts.

Trending

The Weekly Newsletter

Sign-up for the Weekly Newsletter from Tallahassee Business Daily.