I have to agree with Doug on this... I would just refer the client to the other abstractor; and hope that when the other abstractor is in a similar position, they will refer work to me.  In fact, I have found this works quite well.

The problems with sub-contracting orders out are:

1.)  You still have an E&O concern.  If there is a problem with the search, your client will come back on you (they ordered it with you, you billed for it, you were paid for it).  If the abstractor you used had E&O you could try to make a claim against them for your loss, but your E&O still has the duty to defend you. 

Also, E&O is a claims made policy.  That means that if the policy is not in force at the time the claim is made, there is no coverage.  Therefore, if the abstractor you used gets out of the business, gets their policy canceled, dies, etc... there won't be any coverage to fall back on.  Your E&O would have to cover it, therefore, I think your rates would be higher if you were going to subcontract to others.

2.)  Turn-Around-Time would increase.  You are adding more steps to the process and it will ultimately take longer to get it back to the client.  Also, as Doug pointed out, if they have questions on the order, you have to call another abstractor and call the client back.  It would be more efficient to have the client deal directly with the abstractor.

3.)  Your reputation is on the line.  The client placed the order with you, they may expect that you will do it.  If the other abstractor does a lousy search, or takes too long to get it back, it will reflect poorly on you.  Usually, I think if you refer them to another abstractor, they will appreciate the help but won't blame you if the abstractor isn't the quality they expected.

4.)  There really isn't any more money in doing it this way.  You are splitting the usual fee, you would make the same amount of money just referring clients - assuming an equal amount of reciprocation.

In short, by referring the client to the abstractor, you get to charge your full fee for the work you do, and you don't incur any liability for work you didn't do.

Robert A. Franco
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