Brown v. Yacht Club of Coeur D'Alene, Ltd.

BURNETT, Judge.

This appeal presents two questions. First, are buyers of real estate entitled to rescind the sale agreement when third-party communications reveal a cloud on the sellers’ title? Second, if rescission is appropriate, may the buyers recover (a) profits they expected to realize from developing the property, (b) benefits allegedly bestowed upon the sellers before rescission, or (c) out-of-pocket expenses incurred while preparing to develop the land, in reliance on the sale agreement? The district court decided that rescission was proper but that the buyers were not entitled to…