Legal Question in Real Estate Law in South Carolina
Failure to deliver as advertised
Scenario
A mall developer advertises for sale or lease, five abutting outparcels, stating the five parcels will make up a five unit ''Restaurant District.''
The contracts for the sale and purchase of the parcels do not contain specific contractual obligation for the seller to complete the full development of the ''district.''
Based on the brochures and marketing material provided by the seller, a buyer purchases one of the parcels and leases it to a restaurant operator on a ''build to suit'' basis. A second parcel is leased to a restaurant operator who also builds a custom building and opens a restaurant business.
After two years, the developer is unable to market the remaining three parcels to restaurant operators and announces it plans to develop that space for a purpose different than the stated use in the original advertising, ie; different than the use envisioned by the two buyers who are now operating restaurants on their parcels.
Question
Do the two buyers/lessees have a claim for damages in that they did not receive the type of property they were sold?
1 Answer from Attorneys
Re: Failure to deliver as advertised
How did the purchasers not get the type of property they were sold? They got 2 lots on which to build restaurants. They did not buy any interest in the adjoining property. Unless the developer agreed to never change their plan, or request re-zoning, a claim is highly unlikely. It happens every day, and it is their property to use as they wish (within the law).
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
