Pioneer Homes, Inc. (defendant) built a house and contracted to sell it to Bryan and Sue Wilcox (plaintiffs). Pioneer conveyed a warranty deed, including a title free of all encumbrances. The following year, the Wilcoxes reached an agreement to sell the house and underlying real estate. The prospective purchaser conducted a survey and found that the lot was narrower than Pioneer had represented in the deed to the Wilcoxes. As a result, the house was only five feet from the actual lot line, in violation of a municipal ordinance and a restrictive covenant in the subdivision. The Wilcoxes purchased an adjoining strip of land for $1,500 to bring the house into compliance. Then the Wilcoxes sued Pioneer for breach of the warranty against encumbrances. The trial court granted Pioneer summary judgment. The Wilcoxes appealed.