Osprey Point residents sue over unbuilt amenities

A group of residents in Osprey Point are suing NVR, parent company of NV Homes, over amenities that were promised but have never been built.

Those amenities – a beach, kayak launch and storage, dock and boat slips – were prominently featured on marketing materials.

Osprey Point has 217 single-family home lots on 127 acres. It is the site of the former Old Landing Golf Course.

The residents hired Jane Brady, the former Delaware attorney general and Superior Court judge, to represent them.

Brady announced the class action lawsuit Aug. 26, at the area where the amenities were supposed to be built. Behind her, were images showing the NVR marketing image from 2022 side-by-side with a recent image of the site.

“The picture on the left side remained vividly and clearly behind everyone on the wall at the sales office to create the impression of what living in this community would look like,” Brady said.

She said that despite promising a Caribbean-style resort lifestyle, NVR was never under contract to build the amenities.

The lawsuit, filed in Chancery Court, alleges that NVR violated the Consumer Protection Act and the Delaware Uniform Common Interest Ownership Act, deceived homeowners, cost them millions of dollars in lost value to their homes and deprived them of enjoyment of the amenities.

Brady said they are seeking to force NVR to build the boat dock, slips, bulkheaded beach and one slip reserved for a kayak launch.

She said it is aimed at getting residents what they paid a premium for.

“I hope they get the amenities they can provide, because not all of them can be built, and they get compensated for the loss in value to their homes. We’re talking tens of millions of dollars,” Brady said. “Some residents have been here three years and still don’t have water access.”

Brady said, while the developer, Osprey Point Preserve LLC, is named as a defendant in the suit, they do not allege any wrongdoing on their part or seek any compensation from them.

Michael Clayton, one of three plaintiffs to the lawsuit, moved into Osprey Point in 2023.

“We’re now two years later and we’re looking at a pile of dirt,” Clayton said. “NV has been very dismissive of us as a group. Our hope was NV would realize that they’ve broken their promises and they’re in breach of their marketing materials.”

“They knew all along they couldn’t deliver those amenities, but they continued to just sell and sell and sell until it got to the point that we started to realize this wasn’t going to happen,” said Phil Lertora, another of the plaintiffs.

Meanwhile, a trial date has been set for March 9-10, 2026, in the lawsuit NVR filed against the developer, Osprey Point Preserve LLC, in May.

NVR claims the developer is violating an agreement to build the amenities and turn the land over to the homeowners’ association.

It also claims the revised final site plan submitted to the Sussex County Planning & Zoning Commission in January contains new features it never agreed to, including changes to the marina and the addition of a harbormaster building.

The suit contends the developer has offered to sell the 1.1-acre marina open space to NVR for $9 million, which the company called exorbitant.

NVR claims, in the lawsuit, that a group of Osprey Point residents has joined with the developer to attempt to force it to pay the $9 million. The lawsuit calls it extortion.

NVR would not comment on either of the lawsuits.