Then I would speak with a land surveyor or civil engineer to get a sense of what it would take to obtain all the entitlements and bring in the utilities, etc.     

Assuming the contract is valid, enforceable, and the buyer can prove (s)he was ready, willing and able to close, a summary judgment might be awarded granting the request.While every litigant has a right to appeal an adverse judgment, not every request for the appeals court to hear the matter will be granted. 

Also, watch out for any litigation or construction issues that could lead to HOA fee increases down the road.Alternatively, you could consider a good deal on a single-family home or a 2-4 unit property.

since as part of the project you are going to need an architect and civil engineer, I recommend starting with them and ask them who they have worked with for zoning.

I also worry about litigation. 

Since you are out of the country and seem inexperienced, when buying condos you also have to assess the viability and strength of the HOA, pending litigation and/or assessments, and parking per unit.

While it most probably WON’T withstand legal challenge, the borrower would have to spend money to litigate it.  

I was told I can pay $3k to remove the part of the tree that's hanging over the garage (in addition to the $3k deductible I'm already paying) or I can take the next door neighbor to civil court because the tree over the garage is actually dangerous to the tenant who lives there. 

HoltonWise is currently involved in litigation on the topic.

With the potential for a small financial loss on your end, litigation would certainly not be worth the hassle and expense.