Cano

Defendants and Cross-Complainants appeal from a decree ordering specific performance of an agreement for the exchange of real property between plaintiffs Favian Cano and Bonnie L. Cano, his wife, and defendants E. C. Tyrrell and Claire E. Tyrrell, his wife.

At the time the exchange agreement was executed the Canos owned and operated a rest home at 735 4th Street, Woodland, in Yolo County, licensed for six guests. The home consisted of five bedrooms downstairs, three capable of accommodating two guests per room, and an upstairs bedroom occupied by the Canos’ daughter, unsuitable for use as a rest home bedroom because access was by way of an outside staircase. There was also a separate garage building, one-half of which had been converted into two bedrooms. The Canos listed the property for sale with broker Faris and his salesman, Ginise.

The Tyrrells had previously purchased a lot through Ginise, who was aware that Tyrrell, a building contractor, intended to build an apartment house or a rest home on the lot for resale purposes or to be operated through a manager.

Ginise negotiated an agreement between the property owners by which Tyrrell was to obtain a construction loan and…