What I was saying is that the liability on a title policy is contractual between the insured and insurer.  That is a completely separate matter from whether or not the abstractor hired by the insurer is liable to the insurer. 

There is no doubt that a title policy will provide coverage for the owner for as long as he maintains an interest in the property.  If he owns that property for 30 years and a claim arises, the title policy will take care of it.

If the insurer attempts to hold the abstractor liable for a negligently prepared search after 30 years, they may be out of luck.  It would depend on the state law.  In some states, where they recognize abstractor liability based on the tort of negligent misrepresentation, the statute of limitations would not begin to toll until the error or omission is discovered (the abstractor may still be liable).  In other states, where a claim against an abstractor must be founded on contract, the statute of limitations might have started to run when the search was provided (the abstractor would probably not be liable).  And, some states recognize a different statute of limitations for professional negligence - somewhat less than 30 years (again, the abstractor would not be liable).  Of course, it all depends on when the state law says that the statute of limitations begins to run... some states say when the search is completed and some say when the error or omission is discovered.

So, it is quite possible that there could be a claim on a title policy, but the abstractor would not be liable. The period that the title policy provides coverage is determined by the language of the policy - it is contractual.  The liability of the abstractor, and statute of limitations, would be determined by statute or common law. 

At least that is my understanding. 

Best,
Robert A. Franco
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