Goddard v. Hockman (Signed Opinion)
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The Supreme Court reversed the judgment of the circuit court determining that Petitioner's predecessors in interest (the Stephens) were not bona fide purchasers when they acquired the subject property at a trustee's sale, holding that the circuit court was clearly wrong.
Petitioner, the owner of the subject property, sought a declaratory judgment that the property, which was purchased by her predecessors in interest at a trustee's sale following the original owner's default on a loan secured by a deed of trust, was free of covenants or restrictions that post-dated the execution of the deed of trust. The circuit court found that Respondents had an easement on the property, concluding that neither Petitioners nor her predecessors in interest were bona fide purchasers of the acreage and that Respondents had an easement in the subject property. The Supreme Court reversed, holding (1) the circuit court was clearly wrong in determining that the Stephens were not bona fide purchasers when they acquired the property at a trustee's sale; and (2) Petitioner took the property free and clear of all prior covenants and restrictions that post-dated the execution of the deed of trust.
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