W. Baxter Brown and Linda Lee Brown V‪.‬

BURNETT, J. 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 recover in any of the categories indicated. Both sides have appealed. For reasons explained below, we affirm the district court's ruling on rescission, but we vacate that part of the judgment which precludes recovery of the buyers' out-of-pocket expenses.