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Hi Luronz,

Please make sure that you are installing only the file.
If you are uploading the right file and the error still shows up, that must be from a restiction from your server.

The alternative is to install the theme via FTP.

Please see the FTP method:

Very important is to first Unzip the theme pack downloaded from Theme Forest after you purchase.
Upload just the folder wpresidence contents to the wp-content/themes folder on your server – via FTP Manager
Activate the theme in the Appearance / Themes menu in WordPress Admin.
Open the WPRESIDENCE Options and set up theme options from Appearance – Theme Options.

Thank you,