I need to know what are the issues presented in this passage? Which court or courts (federal or state) to which the matters could be brought and why? and the legal issues and laws associated with the passage.

The passage is:

Three weeks late, Silvio decided to sell his home. He met with his potential buyers and advised them that the zoning for the house permitted the house to be used as a two-family dwelling and that the property size was sufficient for the town to permit the construction of an in-ground pool. The real estate broker representing Silvio concurred. The broker wwas Silvio's nephew. The purchasers, who wanted to convert the house to a two family dwelling in order to move their parents in, signed thee agreement and relied upon the broker and Silvio's representation. Weeks later they met with the local Building Department for the town and were told that the zoning laws for the town only permitted one family dwelling for their newly purchased house.