Kevin is right - it does depend on the state law.  And, there is a wide range of rules applied to the liability of an abstractor for errors and omissions.  I wrote a law review paper on the issue of "abstractors' liabilities to third parties." Though I didn't focus on the issue of the statutes of limitations, the manner in which the liability is applied does impact the relevant statute of limitations period.

A few states still adhere to rule that strict privity of contract is required (the only person to whom an abstractor is liable is the one with whom he contracted to provide the abstract).  Most have widened that by allowing claims by third party beneficiaries (those the abstract was intended to benefit).  A growing trend is to find abstractors liable based on the tort of negligent misrepresentation. 

Generally, I think that if the claim is a contract claim, the statute of limitations will begin to run at the time the abstractor performs the services.  On a tort claim, on the other hand, the statute of limitations doesn't begin to run until all of the elements of the tort have been satisfied - one being that the plaintiff is, or should be, aware of any resulting damages. 

Michigan has a very frightening rule from a 1974 case, Williams v. Polgar.  The court held that "there is clearly a foreseeable class of potential injured persons which would include grantees where his or her grantor or any predecessor in title of the grantor has initiated the contract for abstracting services with the abstractor."  The abstract was originally prepared in 1926 and extended in 1936, 1937, 1943, 1944, 1945, 1946, 1948, 1951, and 1952.  A deed filed in 1926 which conveyed the southerly 60 feet of the property was missed and the court allowed the property owner to sue the abstract company in 1971.

Some states have different statutes of limitations for professional negligence.  Nebraska, for example, considers abstractors to be professionals for this purpose and they have an absolute bar on professional negligence claims brought more than 10 years after the services are performed.

A few states have abstractor statutes which specifically address the statute of limitations on these types of claims.  Kansas, for instance, provides that "in no event shall the period of limitation be extended more than 15 years beyond the time of the act giving rise to the cause of action."

With all of these differences, Kevin's advice is perfect - "it would be best to consult an attorney to avoid any confusion or your misinterpretation of the statute."

Excellent question!

Best,
Robert A. Franco
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