Controversial Hamptons Mansion Is Selling for $38 Million, Buyer Can’t Live in the Property

A controversial property in Hamptons is up for sale for $38 million, but there's a catch-the buyer cannot live in it.

Harry Macklowe, one of the most brazen developers in New York City, has listed his Hamptons home for $38 million. However, the new owners would not be legally allowed to move in as the property lacks a certificate of occupancy.

What Happened to the Property's Certificate of Occupancy?

The property had a certificate of occupancy in 2017 when Macklowe bought it for $10.7 million, East Hampton Village building inspector Thomas Preiato told the New York Post.

The certificate was later revoked after Macklowe illegally cleared land on his property and built additions without obtaining proper permits. The act endangered the surrounding wetlands and garnered the developer over 21 violations with fines that have not been paid in five years.

Macklowe later admitted to the East Hampton Village Zoning Board of Appeals that he had built structures at his property without a permit and cleared the wetland vegetation there.

"The great majority of the improvements that we're coming to you for approval for, have already been done," Richard Whalen, Macklowe's lawyer, told the board. "They were built without the benefit of a building permit, or variances, or a wetland permit from this board."

He asked the board to legalize the structures and promised to restore the surrounding wetlands, but his appeal was dismissed.

"You can't buy a property on the pond and do anything you want without any permits," Lys Marigold, chairwoman of the board, said. "It's just not okay."

Macklowe's Other Controversial Real Estate Moves

Macklowe's illegal renovations on his Hamptons mansion came many years after he hired a company led by mob figure Eddie Garofalo to demolish four buildings on West 44th Street in the middle of the night despite not having city permits to do so. The demolitions were made hours before the city began enforcing a ban on razing single-room occupancy buildings. The demolition was done to make way for Hotel Maclowe.

Macklowe paid $2 million to settle a civil suit brought against him by the city after the demolitions. Garofalo was indicted for the illegal demolition.