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Property Law Keyed to Kurtz
Bethurem v. Hammett
Citation:
736 P.2d 1128 (1987)Facts
The Bethurems contracted to purchase a residence from the Hammetts in 1983, making a cash down payment and agreeing to monthly installment payments. The standard Offer, Acceptance & Receipt form included covenants that title would be merchantable, the property complied with applicable laws, and there were no known defects except those readily visible upon inspection. In 1985, surveys revealed that the fence encroached approximately 17 feet into the city street, the garage encroached about 8 feet, and the residence encroached about 4 feet. These encroachments violated the Sheridan City Code. After unsuccessful negotiations, the Bethurems sued for rescission. At trial, the Hammetts claimed they had orally informed the Bethurems about the encroachments, which the Bethurems denied. The trial court ruled for the Hammetts, and the Bethurems appealed.
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