Sounds like another situation where it sucks to be the abstractor. While I couldn't say for sure if you are liable, it does sound like you are in a tough spot. The client has YOUR report with the incorrect tax figures. I think we all know that you could not successfully make the municipal official pay for the mistake, so who should?
When I don't have direct access to the information, I don't report it. If I have to call and ask someone, I figure the client can do the same thing and I provide the phone number. If it is customary in your area to do that for the client, I would have a disclaimer that the information is reported by a third party and you are not responsible for the accuracy, then provide the phone number where they can call to verify it if they choose.
Some questions I might be asking would be: 1) is your client liable to the purchaser/homeowner under a title policy? 2) Has an "official" claim been filed? 3) If you are considering turning it into your E&O carrier, what is their opinion? Sometimes, I think that the abstractor is asked to pay "claims" that the client wants to pay to keep their customer happy even though their may be no legal obligation to do so. I don't think that is always fair to the abstractor.
Asking too many questions may cost you a client, so you have to ask what their continued business is worth. If its a big client and they are pressing the issue, it may make sense just to bite the bullet and write a check.
Best of luck,
Robert A. Franco
SOURCE OF TITLE
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