Failure of Space to Meet Zoning Requirements
In this case a selling broker sold a space to a restaurant owner whose intention was to open a restaurant with an outdoor café. An overview of the plans for the café was presented to the seller’s broker and the owner and a sale was consummated. Upon purchase, the buyer sought to obtain approval for the outdoor café. Unfortunately, outdoor café’s were prohibited by ordinance in this town and the plans could not be approved. The alleged negligence was that the broker should have been aware of the zoning restrictions relating to this property. The building owner settled for $175,000 split between the owner and the broker.