The seller has the two lots legally separated, but due to deed restriction imposed by the subdivision development, found that building a house on the “tennis court” lot was not allowable. 

Your client should consult a real estate attorney to draft an agreement with the ex and ensure there are no legal or tax issues, especially since this is an investment property.

If need be, I can/will go down the legal path again, but I would like to avoid it as I want this property flipped ASAP. 

Do I have to legally disclose to my boss that I will have my sales agent license and have a brokerage sponsor that is someone different outside the MF development company?

I have just under five rental properties and I understand the legal benefits of creating an LLC (married to a lawyer).

I have a few questions- "We started an LLC" "We purchased a property" Who are the legal owners of the LLC? 

They said did not need their approval to turn their money over to new GP's but we will let you vote anyway.

Any local bank that does this kind of financing should be able to approve you as long as you have a good enough credit score and never declared BK.

Is there any legal action one can take or is it just a lost cause?

Zoning Ordinance ExceptionsSome properties in the target zone don’t meet the minimum lot area or width size requirements under the zoning ordinance, yet houses exist on smaller-sized neighbor lots.How could these properties get approval for development?