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[+] More Security Issues - Shannon Blatt/VA (9 replies)
7/9/2005 10:47:23 AM (2600 views)

[+] E&O insurance continued... - Loretta Reed/MD (10 replies)
7/9/2005 10:18:53 AM (2526 views)

[+] Former employees disclosures - SHARON YAHRAES/ID (12 replies)
7/9/2005 2:30:28 AM (2750 views)

[+] Public Note of Thanks - Helene Gonzalez/GA (3 replies)
7/8/2005 10:23:42 PM (3483 views)

[+] abstracting in LA - Michael Frank/TX (1 reply)
7/8/2005 10:13:51 AM (2474 views)




[+] So, You Want To Out-Source Overseas??? - Jay Duncan/MO (2 replies)
7/7/2005 12:49:46 PM (3572 views)

[+] Nationwide Title Clearing - Danielle Nelson/WI (10 replies)
7/7/2005 10:27:44 AM (2701 views)

Abstractor Software... - Robert Franco/OH
7/6/2005 5:03:56 PM (2029 views)

Texas Courthouses - Lisa Ramsey/TX
7/2/2005 1:06:43 PM (2063 views)

Women in business resource - J Nisonger/CA
7/1/2005 11:55:16 AM (3052 views)

[-] Searcher Liability Question - Larry Crooks/OH (8 replies)
6/29/2005 4:02:29 PM (2624 views)
Re: Searcher Liability Question - Kevin Ahern/CT
6/29/2005 5:03:27 PM (3394 views)
Re: Searcher Liability Question - Robert Franco/OH
6/29/2005 7:17:46 PM (3614 views)

I don't think there is any doubt that the abstractor is liable for the full amount.  In a Pennsylvania lawsuit an abstractor was held liable for a $176,000 loss for missing a judgment lien. (see Searcher Owes Insurer for Missed Judgment) That searcher even used a disclaimer on his search attempting to limit the liability to $25.

The real issue is - why aren't the abstractors compensated for the liability?  If I do a search and the client issues a $50,000 loan policy, I don't have nearly as much liability as I do if they issue a $500,000 owner's policy.  However, assuming I did a full search for both - I am not compensated any more for the additional liability.

On the other hand, the insurer is charging the consumer a lot more for the $500,000 owner's policy.  The agent is paid very well for the increased liability and they are still able to pass most of that liability off to the searcher.

I think that before a company decides to ask the abstractor for a penny they should think about the ethics involved.  If they aren't sharing the profits, they shouldn't be expecting to offload the liability. But that is just my opinion.

There is a big difference between what's legal and what's ethical.  Unfortunately, even if a company chooses not to seek damages from the abstractor, their E&O company may if they pay the claim.

Bottom line, there is a lot of liability in this business and the fees do not justify it.  It is just something we all have to deal with.

Best,
Robert A. Franco
SOURCE OF TITLE

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Re: Searcher Liability Question - Lisa Ramsey/TX
6/29/2005 11:39:52 PM (3689 views)
Re: Searcher Liability Question - Larry Crooks/OH
6/30/2005 6:49:16 AM (3504 views)
Re: Searcher Liability Question - Kevin Ahern/CT
6/30/2005 8:41:48 AM (3752 views)
Re: Searcher Liability Question - Robert Franco/OH
6/30/2005 10:05:58 AM (3650 views)
Re: Searcher Liability Question - Larry Crooks/OH
6/30/2005 12:37:48 PM (3472 views)
Re: Searcher Liability Question - Regina Engebritson Engebritson/MN
8/10/2005 8:33:33 PM (3396 views)

[+] reporting tax status on searches - christine/MA (5 replies)
6/29/2005 9:02:48 AM (2607 views)

In Response to Robert's Thread of 6/24 - J.T. Shoemaker/NY
6/27/2005 9:16:08 AM (3195 views)

[+] Mr Davis and his claims - James "Lin" Toney/MS (7 replies)
6/26/2005 11:23:26 PM (2634 views)

[+] QUESTION FOR TECHIES - Scott Perry/PA (7 replies)
6/26/2005 10:21:53 PM (2475 views)


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