Morpurgo House Ownership at Question

With the old Morpurgo house on Union Street, nothing is ever simple. Despite there being a winning bidder at an auction held in June, the deal has yet to be finalized and, reportedly, someone has stepped forward to claim an ownership in the property.

Tom Preiato, the Sag Harbor Village building inspector, told the village board on Tuesday evening that “someone has . . . made some sort of claim,” which has held up the deal. “I can’t speak to it legally, exactly,” Mr. Preiato said.

On June 24, Mitch Winston, an Amagansett resident and developer, bid $1.325 million to purchase the blighted property during an auction that was held on the steps of Southampton Town Hall as part of a foreclosure process. Along with his partners, he planned to restore the 210-year-old house, which has been abandoned for many years.

According to court documents, Charlotte Lisi of Dix Hills filed suit on July 18 against a number of people including the lender foreclosing on the property, claiming that she had a financial interest in the property and had never been notified of the auction. It was the day before the deed was to be filed, said Mark Egerman, a Beverly Hills attorney who is a partner in the property with Mr. Winston. They were not named in the suit. A Suffolk County Supreme Court hearing on the matter is scheduled for the end of August.

The village board has publicly discussed tearing down the house, with its front porch in danger of collapse, an open septic tank, and a crumbling roof. Mr. Preiato has called it a health and safety hazard.

While the property has a chain-link fence out front that has been extended with a three-foot plastic, orange safety fence, the village had been looking forward to Mr. Winston taking ownership, as he and his partners had promised to fully secure it as they developed their plans for the property.

David J. Gilmartin Jr., the village attorney, said he had not been briefed on the ownership claim that Mr. Preiato referenced. If it is true, he said, the sale could be tied up in the courts for three years. He told the board he will research the situation later this week and report back.

“This is a property that has been thrown into crazy land for years and years and years,” said Robby Stein, the deputy mayor, as he asked the board what action it should take.

“Our action is going to be knock the damn place down,” Mayor Sandra Schroeder said in response.

Mr. Gilmartin, however, cautioned her. In order to tear down the house, the board would have to properly notice the owner. Prior to the auction’s being held, ownership was complicated enough. If someone else is making claims, “it really highlights the challenges we face,” he said, adding that the village needs to figure out the ownership rights before it “can move forward confidently.”