Opinion ID: 1253810
Heading Depth: 2
Heading Rank: 2

Heading: Upstairs Rental

Text: We now turn to the allegation that the defendant misrepresented that the upper unit was legally rented to five unrelated tenants. It is not disputed that Shimanski knew that the Lundins intended to continue the rental of the upstairs. When asked about the zoning classification, the defendant correctly informed Rosenvold that the property was zoned R4A. Rosenvold testified that she knew that the tenancies did not conform with the zoning requirements but failed to inform the Lundins of this violation because Shimanski gave her the impression that the zoning violation did not create a problem. [8] The Lundins testified that when they first inspected the home, Rosenvold informed them that the property was occupied by five women who collectively paid $450 a month and that the tenants' lease ran through August, 1978. The record is unclear as to when the plaintiffs were first informed that the property was zoned R4A; however, it was apparently some time prior to the closing. The Lundins testified that they were unaware of the legal ramifications of this zoning classification and, instead, relied on the defendant's acceptance of the offer to purchase which stated that the tenants' lease was effective through August, 1978. Additionally, misrepresentations were made at the closing that the property was legally rented to five unrelated tenants. The plaintiffs were represented by an attorney at the closing. The plaintiffs' attorney testified that when he questioned Shimanski about the zoning classification, Shimanski incorrectly stated that the property was zoned R4. This is reflected in the closing statement, which reads, Zoning R-4. Further, Shimanski assigned the tenants' lease to the Lundins. Based on these facts, we hold that there is sufficient credible evidence to conclude that Shimanski, through his words and actions, misrepresented that the upper unit was legally rented to the five unrelated tenants. We also conclude that at all times pertinent to this case, Shimanski was well aware of the fact that the property could not legally be inhabited by more than one family, plus one unrelated person. The official notice from the city building inspector that was received by the defendant in March, 1977, informed Shimanski that the property was in an area zoned R4A and that it must not be inhabited by more than a family plus one person. Shimanski wrote the building inspection department on May 19, 1977, stating that the upstairs unit was rented to a family effective August, 1977. However, contrary to this letter, Shimanski had entered into a lease in May, 1977, with the five unrelated women who were the tenants of the upper unit at the time the Lundins purchased the property. This lease was to expire in August, 1978. This lease, that Shimanski knew was illegal, was assigned to the Lundins at the closing. Based on this evidence, we conclude that there was sufficient credible evidence adduced at trial from which the jury could find that Shimanski intentionally and fraudulently represented to the Lundins that they could legally continue leasing the upper unit to the five women and that this misrepresentation induced the plaintiffs to purchase the property. In viewing this case as a whole, it is clear to this court that there is sufficient evidence that the jury could conclude that Shimanski misrepresented the suitable use of the property in question. The Lundins correctly assert that they sought to purchase a house where the basement unit could be occupied by their son and where the upper unit could be rented for income purposes to existing tenants. The Lundins were unable to obtain either of these goals. Within two months of the real estate closing, Steven was ordered to vacate the basement and the plaintiffs were ordered to reduce the occupancy of the upper unit. The plaintiffs' application for a zoning variance was denied, and they were not able to obtain a permit. [9] As such, we affirm the jury's finding of misrepresentation on the part of Shimanski.