Real Estate Principles 11th Edition by Charles Jacobus

Exercise 9

Thorsen sells his house to Williams. Williams moves in, but, for some reason, does not record his deed. Thorsen discovers this and sells the house to an out-of-state investor who orders a title search, purchases an owners title policy, and records his deed. Thorsen then disappears with the money he received from both sales. Who is the loser when this scheme is discovered: Williams, the out-of-state investor, or the title company? Why?