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[+] Source of Title's new look... - Robert Franco/OH (6 replies)
8/27/2005 10:10:33 AM (2386 views)

[+] Title Direct non-payment - Anne Gilbert/VT (5 replies)
8/26/2005 6:25:10 PM (2383 views)

[+] Mortgage over 30 years old, but no release - David Kossman/MO (19 replies)
8/25/2005 3:16:53 PM (2648 views)

[+] Back to school - monica froese/ME (11 replies)
8/23/2005 4:16:43 PM (2298 views)

[-] Liability Disclaimer - Danielle Nelson/WI (12 replies)
8/23/2005 2:01:59 PM (2410 views)
Re: Liability Disclaimer - Robert Franco/OH
8/23/2005 4:14:02 PM (2994 views)

I have mixed opinions on these types of disclaimers.  First, I am not sure they will hold up in all situations or in all jurisdictions. 

Second, I haven't yet decided for myself if it is entirely ethical to attempt to disclaim professional liability.  A part of our job is to provide reliable information.  If we fail to do so, and our customer incurs a financial loss, shouldn't we be responsible for it?

On the other hand - I don't feel the fees in our field compensate us for the amount of liability we incur.  I find it shocking that an abstractor would be expected to be held liable for hundreds of thousands of dollars in potential liability for a $45 fee.

Although title insurance covers against loss from other causes, it has been reported that most of the claims are for searching error.  To me this indicates that the liability for searching error should be worth more than half of the title insurance premium.  This theory seems to be supported by the agency agreements that most title agents have with their underwriters.  Those agreements hold the agent responsible for searching error and a typical split of the premium gives 70% to 85% to the agent.

The problem is that many agents are passing the liability along to their abstractors by requiring them to carry E&O insurance, but they aren't providing any additional compensation.  This is what makes it so profitable to outsource title work to independent abstractors.

While I believe that there are many cases where the underwriter does not attempt to collect a loss from an agent, and likewise, many agents do not attempt to collect losses from their abstractors - I believe it is becoming more common to do so.

E&O insurers are encouraging agents to make sure that their abstractors carry E&O insurance for just this reason.  The fact that it is possible to collect hundreds of thousands of dollars from the abstractor in return for a search fee of $45 is frightening.

So, I am not sure how I feel about disclaimers.  I have a feeling that clients would not like to see these disclaimers and I think it could affect business.  From the case in PA,
PA Court Upholds Liability Limitation in Title Abstract, it is clear that the advice to agents is to object to them.  However, the potential loss from a claim certainly makes it an appealing option for the abstractors.

Personally, I do not use disclaimers on our searches, however, the thought has crossed my mind.  I think we should either be able to charge appropriately for the liability we incur or we should not be expected to incur the liability. 

Best,
Robert A. Franco
SOURCE OF TITLE

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Re: Liability Disclaimer - Lisa Ramsey/TX
8/23/2005 5:18:18 PM (2890 views)
Re: Liability Disclaimer - David Bloys/TX
8/23/2005 5:31:15 PM (2932 views)
Re: Liability Disclaimer - William Pattison /CA
3/18/2008 5:13:07 PM (2437 views)
Re: Liability Disclaimer - Kelli Gorman/TX
9/1/2005 1:14:08 PM (2759 views)
Re: Liability Disclaimer - Kevin Ahern/CT
9/1/2005 1:52:10 PM (2769 views)
Re: Liability Disclaimer - Kelli Gorman/TX
9/1/2005 10:38:48 PM (2776 views)
Re: Liability Disclaimer - Kevin Ahern/CT
9/2/2005 6:11:19 AM (2784 views)
Re: Liability Disclaimer - Scott Perry/PA
8/23/2005 5:42:49 PM (2925 views)
Re: Liability Disclaimer - Kevin Ahern/CT
8/23/2005 6:45:13 PM (2864 views)
Re: Liability Disclaimer - Anne Gilbert/VT
8/26/2005 6:13:07 PM (3799 views)
Re: Liability Disclaimer - Lisa Ramsey/TX
8/27/2005 10:24:42 AM (2785 views)




[+] The Jordan Group - Any experience with any of these affiliated companies? - Matt Papsch/MD (2 replies)
8/22/2005 5:41:51 PM (2448 views)

[+] Gasoline Trivia - Who Would Have Thought? - Lisa Ramsey/TX (6 replies)
8/19/2005 8:45:16 PM (2387 views)

NALTEA committees... - Robert Franco/OH
8/18/2005 12:25:11 PM (1792 views)

thanks anyway - Kim Haase/MT
8/18/2005 12:18:26 PM (1848 views)

[+] VIEWS - LAWANDA MCMILLIAN/AR (8 replies)
8/18/2005 9:28:38 AM (2392 views)

You asked for it... - Jay Duncan/MO
8/17/2005 5:05:10 PM (1896 views)

[+] fees - Lynn Hammett/SC (6 replies)
8/16/2005 7:53:23 PM (2487 views)

[+] The royal shaft! - Robert Franco/OH (9 replies)
8/16/2005 1:51:13 PM (2589 views)

[+] Anyone Hear from Jason Sheppard? - Lisa Ramsey/TX (7 replies)
8/16/2005 9:56:01 AM (2600 views)

[+] Gas Prices...here we go again!!! - Jay Duncan/MO (7 replies)
8/15/2005 9:42:28 PM (3205 views)


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