A broker has a duty to exercise reasonable care in making representations as to a property’s zoning designation.
If a broker’s representation is based on information from the seller questions turns to whether it was reasonable in the circumstances to rely upon such information.
For Example In DeWolfe v. Hingham Ctr., Ltd., 464 Mass. 795 (2013).
A broker made a representation to a buyer that the property the buyer was interested in was zoned for commercial use. The buyer relied upon this information, purchased the property, and later found the property was only zoned for residential use. Was the broker’s representation reasonable in these circumstances?
The court found that this broker’s representation was not reasonable.
The broker was aware that there was no prior business use of the property, the broker could observe that there were residences not businesses adjoining the property on either side and the broker did not look into the zoning for the property.
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