We are very pleased that we have been able to create Source of Title and that so many people find it a useful resource.  Sometimes I do dread seeing the posts about abstractors not being paid, but as you point out, it is a valuable notification for others.

Unfortunately, we do have a long tradition in the abstracting profession of advancing fees and our time - NET30 terms are the norm in most service professions and there is nothing inherently wrong with that.  I am always happy to provide NET30 terms to my clients and I have always given new clients a chance.

However, the NET30 terms have been abused by some clients who sent out notices that they were adopting a NET45 or NET60 payment schedule.  Abstractors who depended on that work for their livelihood had little choice but to accept them.  Further exacerbating the problem are the new companies that are ridiculously underfunded to handle the size of the operation they attempt to manage.  They simply accept orders that they cannot pay for, until they are paid, and they just push off their responsibilities to their abstractors.  In many cases, it is a business exclusively built on cash-flow and the slightest problem with one of their clients and their vendors suffer greatly.  The "house of cards" analogy was very fitting.

I'm do not know Wayne and I am not making any judgments about his new company's financial position.  I'm just making general observations.  However, I can understand why the question would come up and it makes sense to want to know if a new company can afford to pay their vendors or if they are simply banking on future cash-flow to pay for services they are ordering.

Inevitably, whether due to mismanagement, or to getting stuck by one of their clients, these underfunded companies are setting themselves up for a fall that the abstractors will suffer from.  In my opinion, its no excuse to blame non-payment of a an abstractor on non-payment by a client.  If they couldn't afford to pay for the search when they ordered it, that is simply their fault.  It is a sign that they were underfunded from the beginning and probably in over their head from the start.

That being said, whether an abstractor chooses to do business with a new company it is ultimately up to them. If they are satisfied that payment won't be an issue, or at least willing to take the risk, that is their prerogative.  A new company has no duty to disclose their financial condition on a public website - there are advantages and disadvantages either way.

And, thanks for the kind words.  We always appreciate hearing that our work on Source of Title has been beneficial.

Best,
Robert A. Franco
SOURCE OF TITLE