Sadly, this is what makes the online searching options so attractive to agents.  We all know that they cannot provide the same thorough-ness as a professional abstractor at the courthouse.  However, the underwriters own the "automated" searching systems and they can indemnify the agent from any errors.  If the agent chooses to use a professional abstractor, even though the quality may be much better "most of the time," if there is an error or omission on the part of the abstractor the agent may incur liability.

This incentive creates an environment where more customers are pushed into providing an inferior product to the consumers.  The underwriters have been able to use their position to drive up the use of these systems and they have managed to increase their revenue by taking the work away from the abstractors.  Because they are making more money, they are willing to take more risks.

I don't see much changing in this regard.  The online systems will only get better and the underwriters will continue to reap higher profits.

Best,
Robert A. Franco
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