Empty Homes and Promises: Homebuyers Demand Answers After Construction Delays

A group of homebuyers say they have waited years to move into their dream homes.

The townhomes in the heart of Coconut Grove are modern, spacious, and are still under construction.

The homebuyers we spoke with say they’ve repeatedly demanded answers from the project’s developer but have only received excuses. They asked us to conceal their identities telling us they fear retaliation.

A man, whom we will refer to as Lee, says he should already be living in one of the homes.

“The home was supposed to be finished 45 to 60 days from the date that we signed the contract,” Lee said.

He showed us the contract he says he signed more than two years ago with the private developer – Douglas Cox of Drive Development, LLC and Send Enterprises, LLC — to purchase the home.

The contract states the construction would be substantially completed by approximately 60 days from the date the contract was signed, subject to construction delays.

“We bought a home that was built, and there were just minor things pending to be finished on the interiors,” Lee said.

The contract required a 20% deposit worth hundreds of thousands of dollars.

“That is all of our life savings, are in that home,” Lee said.

Lee is not alone.

NBC 6 Responds spoke with four other families who told us they also have been waiting for years to close on their properties at the same development.

“To be told 45 days, every 45 days, for years is mind numbing, after a while you don’t believe anything he says,” one homebuyer told us.

'The Housing Market Has Since Ballooned'

When we asked the group of homebuyers why they don’t walk away from their contracts, one responded, “The housing market has since ballooned.”

And ballooned it has.  

According to Zillow, in the last three years, the typical home value in the Miami metro area is up 58%. It’s why the families we spoke with say they don’t want to walk away from the homes they have under contract, telling us they fear they won’t be able to afford a similar home.

But other families have decided to walk away and take the developer Douglas Cox to court.

A lawsuit filed in January alleged a breach of contract by the developer for “failing to substantially complete construction.” That case was dismissed because their contract stated any dispute should be handled by a mediator or arbitrator, according to court filings.

Another suit was filed in July by a different homebuyer, who claims more than a year and a half past the agreed closing date and their home is still not ready to close. This case is ongoing and is now also headed towards arbitration.

Developer’s Response

NBC 6 Responds reached out to the developer, and an attorney representing his companies sent us the following statement: 

“The COVID-19 global pandemic has caused unprecedented and unpredictable delays for all industries, including the construction industry in South Florida. Coupled with the pandemic, the construction industry, among many others, suffered (and continues to suffer) the impacts of extraordinary global supply-chain disruptions. These events have caused shipping delays, material and labor shortages, abrupt closures of vendors and suppliers, lockdowns and other health related delays affecting many of our subcontractors, suppliers, vendors, materialmen, trade professionals, and municipal officials upon whom we rely to complete our construction projects. Unfortunately, the construction pertaining to Coconut Avenue is no exception. Despite these unforeseen obstacles, we have proceeded expeditiously and in compliance with all applicable laws, regulations, and ordinances. We have not caused or created any of the delays pertaining to the completion of the Coconut Avenue projects.”

Despite these delays, the lawsuit filed in July claims that the buyer went under contract months after the pandemic started and was still promised a closing date within 60 days.

We asked Cox’s attorney about this lawsuit but were told he cannot comment on pending litigation.

His attorney said the following regarding homebuyers who are still waiting to close on their properties: “We understand that buyers are anxious to move into their beautiful new homes, but despite our best efforts, these delays are completely outside of our control. However, as a courtesy to buyers who opt not to wait for the completion of their homes, beginning in late 2020 and regularly thereafter, we extended an open-ended, no-obligation and unconditional invitation to each buyer to cancel their agreement and receive a full and immediate return of their deposit, without any penalty. For buyers who choose to wait for their homes, we honor our commitment to deliver a quality, well-built property with meticulous attention to detail that each buyer will be proud to call their home.”

Homebuyers we spoke with say this offer only benefits one person, the developer.

“The market has changed, for all the reasons he wants us to pull out, are all the reasons we can’t go find something else,” one homebuyer told us.

Audit Connected to Development 

We contacted the City of Miami’s building department and they pointed to several delays related to this development, including a “stop work order” placed on some of the properties back in 2020. It’s an issue that has taken almost two years for the developer to clear up, according to city records.

A spokesperson from the department told us this project has not been approved and inspected by the city but by a private provider hired by the developer.

After we contacted the city, they are now conducting an audit of this private provider in connection with this development.

We reached out to the private provider and developer regarding the audit, but neither responded to our questions.