EXCLUSIVE: Sean 'Diddy' Combs Sued — Jailed Rapper Accused of Backing Out of $55Million Deal to Sell Luxury Home on Miami's 'Secret Celebrity Playground'
Sean 'Diddy' Combs is still racking up the lawsuits.
June 26 2026, Published 3:20 p.m. ET
Sean 'Diddy' Combs is being sued for reneging on a $55million deal to sell one of his luxury mansions on a star-studded private island in Miami, RadarOnline.com can reveal.
The jailed disgraced rapper, who is currently languishing in a New Jersey federal prison, had allegedly agreed to flog one of his two side-by-side homes on Star Island to South Carolina-based buyer, John Franklin.
Lawsuit Details
Combs is in familiar territory as he's part of yet another lawsuit.
But the agreement collapsed after Franklin and his attorneys found out that the Bad Boys Records founder allegedly hadn't paid off two mortgages and failed to provide proof that he'd settled a construction permit attached to 1 Star Island Drive, which Combs bought for $35million in 2021 from Queen of Latino Pop, Gloria Estefan.
The extravagant home has six bedrooms, ten bathrooms, sits on 1.34 acres, and was purchased with a $20.7M mortgage from Bank of America.
But on the day, they were meant to close the deal, May 12, Combs' team allegedly only provided the mortgage payoff letter at 4:15 pm, which was too late to complete the transaction.
Franklin's lawsuit also claims there is an outstanding $5million loan with Northern Trust, which was taken out by Nenas Villa Inc, a company attached to Estefan.
The disgraced rapper is accused of backing out of a deal to sell his home, which sits on a private island.
It's not clear if Combs took on this loan upon purchasing the property, as there are no documents filed with Miami-Dade County stating this.
The lawsuit, filed on May 21 at the Miami-Dade County Circuit Court, says: "On the Closing Date, Purchaser was ready, willing, and able to close on Contract pursuant to the terms of the Contract.
"Purchaser remains ready, willing, and able to close on the Contract pursuant to its terms. On the Closing Date, Seller was not ready or able to close on the Contract pursuant to the terms of the Contract. Seller was unable to convey clear, marketable title in accordance with the Contract by the Closing Date."
"Prior to the Closing Date, Purchaser identified numerous title and closing issues that Seller had failed to exercise due diligence to cure prior to or at the time of closing," the lawsuit details.
'Seller Had Not Provided Purchaser With Documentation'
The proposed deal is said to have been for $55million.
It continues, "As of 5:00 p.m. EST on the Closing Date, Seller had not provided Purchaser with documentation that it had cured, or was prepared to cure prior to or at closing, the following encumbrances on title to the Property. Seller failed to provide Purchaser:
"Proof of payment and a recorded satisfaction of a certain mortgage in favor of Northern Trust, N.A. that remains a recorded encumbrance on the Property. On the Closing Date, the Property was also encumbered by a mortgage in favor of Bank of America.
"Seller only provided Purchaser with the necessary, signed authorization required to obtain a payoff letter for the Bank of America Mortgage at 4:15 p.m. EST on the Closing Date."
The lawsuit notes, "This foreclosed any possibility of satisfying the Bank of America Mortgage at the closing on that day."
Combs is still rotting behind bars.
According to Franklin, "the seller has refused to close or sell the Property to Purchaser as required by the Contract."
He's asking for attorney costs and damages, adding: "Purchaser has been damaged as a direct and proximate result of Seller's default and breach of the Contract."
Franklin's attorneys, KHL Law, have also filed a "Notice of Lis Pendens in order to notify any potential purchasers." Franklin is not suing Combs personally, but his firm, 1 West Star Island LLC, which was used to buy the swish pad.
The officers of the LLC are former Combs Enterprises president Tarik Brooks and Margaret Stephens, a member of Tri-Star, Combs' business management.
Tri-Star and its owner, Lou Taylor, came under scrutiny for being in joint control of client Britney Spears' conservatorship, where the singer claimed they'd made $18M from mismanaging her finances, in cahoots with her dad, Jamie.
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The agreement to sell Combs' seafront home was brokered by its accountant Robin Greenhill, who had been named in a lawsuit as the bagman to pay off girls at his infamous "freak-offs." In February 2024, music producer Rodney 'Lil Rod' Jones accused Greenhill of ensuring "the wiring, funds transfer, or cash payments to s-x workers,"
Jones' complaint read: "[Rapper] Yung Miami, [models] Jade and Daphne Joy were paid a monthly fee to work as Mr Combs' s-x workers and received payment via wire transfer from Robin Greenhill for Diddy's 'ongoing criminal operation.'"
Combs bought 1 Star Island Drive 15 years after scooping up the neighboring mansion, 2 Star Island Drive, for $14.5million in April 2003 from Sony music mogul Tommy Mottola, Mariah Carey's ex-husband.
Star Island has been labelled as "Miami's Secret Celebrity Playground" with 33 uber-expensive properties owned by the likes of Jeff Bezos, Jennifer Lopez, Jared Kushner and Ivanka Trump, and Tom Brady, and is heavily fortified with 24/7 security.
