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Can we rescind the sale of the home that we just purchased?

Question Details: Last Monday, my husband and I bought a house with a big fenced in yard for our dogs. As we were at the closing, signing our paperwork, the seller of the house told the next door neighbor that a portion about 1/3 of our soon to be property actually belonged to her and was not part of his property at all. On our way to the property we recieved a phone call from my Mom saying that the neighbor is claiming that a big chunk of the land is actually hers and she was going to tear down the trees and put up a fence. We feel like we were tricked, either by the seller or the real estate agent. Then, 2 days later, the agent offered to rescind the sale and we happily agreed but the sellar wouldn't agree. Now it is a week later and we find out that we can't rescind and are stuck with the house. Do we have any legal recourse? We needed that land for our 4 Newfoundland dogs weighing between 120 lbs-185lbs. The biggest reason we purchased this house was for the big fenced in backyard.

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