Perhaps I have a different point of view.  It sounds to me like you have an agreement with your client that they will pay you less if there are any deficiencies in the search.  That was your choice to enter into that agreement. 

Do you have the same agreement with your abstractor?  It does not sound like you do.  Therefore, I think the abstractor should be paid in full. 

Also, I'm not sure where the idea of this "deduction" ever came from.  The abstractor did the work, why should they not be paid?  Because they made a mistake?  We are all human and we all make mistakes.  It sounds like this one was caught in time, and there was no claim or loss as a result.  I seriously doubt that when the homeowner sat down at the closing table someone said "good news - an abstractor you never heard of made a mistake and corrected it, therefore we are reducing your fee by $50.00!" 

And, I have been called many times by clients over the past 20 years claiming that we missed something and demanding that we double check it immediately.  The vast majority of the time, the client is mistaken and our search was correct.  Do we get to charge extra for that extra work??  Not likely.  So, why should we charge less when we did make a mistake, so long as it was caught before closing?

I have offered, in a few instances where we have actually made a mistake, to waive my fee.  Usually my client says "No, you did the work, we will pay you.  Just be more careful in the future."

What should happen, in my humble opinion, is that the abstractor should always be paid - unless they offer to waive their fee.  Mistakes happen.  However, if the mistakes get to be common, it may be time to search for a new abstractor.  One mistake, however, is excusable and I would pay them.

Just my two cents worth.

Best,
Robert A. Franco
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