Winter Park family builds home then discovers seller didn’t disclose $12.6 million lien [Orlando Sentinel]

Aug. 14--Gary Jensen thought he was doing everything right when he bought an expensive piece of lakefront property in Winter Park. He dealt with one of the most prestigious law firms in Orlando and got title insurance.

Then, after he built a $1.4 million home, Jensen discovered that the land is saddled with a $12.6 million lien.

Jensen is now suing two officers of the company that sold him the parcel for $760,000. One is Todd Kobrin, a partner at Shutts & Bowen LLP, a downtown Orlando law firm. Kobrin, who the suit alleged is a real-estate law specialist, did the legal paperwork for the sale.

According to the suit, which was filed last month in state Circuit Court in Orlando and seeks more than $12 million in damages, Kobrin either knew about the lien or should have.

The suit also names Kobrin's father, Winter Park investor Philip J. Kobrin. Both are officers in Kobrin Holding Co., the company that sold Jensen the land.

Reached by phone in separate calls Monday, neither Kobrin would comment.

Here's what happened, according to Jensen's suit and Orange County records:

In 2008, the Kobrins loaned real-estate developer Albert Kodsi and a partner $650,000, using the vacant 2-acre lot on Lake Berry as collateral.

Kodsi had been a successful homebuilder and developer, whose companies were responsible for a pair of high-end 18-story condominiums in downtown Orlando: The Sanctuary on Eola Drive and the Star Tower on South Osceola Avenue, a development that later went bankrupt.

Kodsi also had financial problems in Volusia County, where in 2011, a judge entered a $12.6 million judgment against him because of a failed $20 millionDaytona Beach hotel redevelopment that resulted in foreclosure and a courthouse auction.

That judgment was recorded as a lien in Orange County on Jan. 18, 2011, the suit alleges. One month later, the Kobrins took the title to it in exchange for forgiving Kodsi's $650,000 debt, records show.

Four months later, the Kobrins sold the land in the upscale Winter Park subdivision Windsong to Jensen for $760,000.

Todd Kobrin did the legal paperwork in both transactions, the suit alleges -- the swap with Kodsi of the mortgage for the deed and the sale to Jensen.

In that sale, Philip Kobrin signed an affidavit -- which had been prepared by his son -- declaring that there were no judgments or liens that encumbered the property, the suit alleges.

Jensen built a $1.4 million, 8,500-square-foot home on the lot last year. According to Orange County property records, the land and home are worth $2.2 million. Jensen's suit places its value at $3.45 million.

Now, if Jensen sells the home, he'll get none of the money. Instead, it'll go to pay off the lien holder, LMIW III, LLC, the company that won the $12.6 million judgment against Kodsi in Volusia County.

Jensen's suit accuses the Kobrins of negligence, fraudulent misrepresentation and breach of warranty. It seeks $12.6 million in damages plus interest.

Jensen, a contractor whose Orlando company, Terra Firma Construction Management Inc., has done work for Orange County, Orlando, Orange County Public Schools and Valencia College, said he had title insurance to cover the value of the land but not enough to cover Kodsi's lien.

He just wants to sell the home and get the whole thing resolved, he said.

Clayton Simmons, former chief judge in Seminole and Brevard counties, said a judgment against a debtor can be recorded as a lien in any Florida county. Once that happens, proceeds from any property sale by the debtor in that county would go first to pay off the lien holder.

Under Florida law, Simmons said, it's the responsibility of each land buyer to research public records to look for liens or other title problems.

"Somebody missed that ($12.6 million) judgment in the title search," he said.

Kodsi, who lives in Cocoa Beach, could not be reached for comment. His lawyer did not return a phone call.

rstutzman@tribune.com or 407-650-6394.

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