This one takes the cake. Buyers of units at Trump Towers I, II, and III in Sunny Isles Beach, Fla are suing the developers, the Related Group and Dezer Development because, according to the Daily Business Review
…used the celebrated Trump name to attract buyers. But according to the suit, the billionaire’s name can only be used temporarily and for promotional purposes and may be changed once the units are sold out, the buildings are completed and the developers are no longer associated with the project. The lawsuit was filed Tuesday in Miami-Dade Circuit Court.
The buyers are seeking cancellation of sales contracts for units with prices totaling more than $100 million and the return of about $20 million in deposits.
Trump who was reached in Scotland…said he was “honored” by the lawsuit and the fight over his name.
Honored? Read the rest of the story and you’ll want to do a little bit more to Trump other than “honoring” him.
Categories: Real Estate News
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June 12th, 2008 at 1:47 pm
Is it possible Mr. Trump saw this coming when they approached him with the idea to anchor his name for a fee?
If so, this is another example of how someone like him becomes a multi-billionaire. Having the vision of seeing the day when a fight might ensue over his name while getting additional publicity and the chance for a lifetime of royalties is simply genius.
An expensive lesson to lear for all developers, promo/marketing people and attorneys.
Also, buyers and Realtors should learn to ask 2 new questions (at least): Will the anchor name remain forever? If so, how much is this consting us now and over time (in added maintenance fees to pay for those royalty rights to use the anchor name)?
Regardless of the answer, the final question would be to buy or not to buy in a project being promoted with the use of an anchor name.
Wenceslao Fernandez Jr, Realtor, CDPE
Keller Williams Realty
June 12th, 2008 at 5:35 pm
>>Regardless of the answer, the final question would be to buy or not to buy in a project being promoted with the use of an anchor name.
Very insightful. When the brand vanishes so does some of the perceived value.
June 15th, 2008 at 8:27 am
I can always count on you to find out about the latest real estate “scandal du jour”, thank you, Monica
August 16th, 2008 at 5:58 pm
This seems like a dumb idea from the start, unless it’s simply a scam. Or maybe they felt it would be fully occupied before the name vanished, which is silly in itself. Sigh.