i agree with you ,Robert. This seems to be a growing trend. I am having the
same problem with three clients right now. We gave them volume discounts based on their representations that we would receive a certain volume of orders. They placed several orders with us at the reduced rates, are currently late with payment and the volume never materialized. In one case we are starting to turn down business because they also reduced their current owner search price to $25.00 (They created a different name for the type of search, but it still involves going back to the last warranty deed for value) without mentioning the reduction to us. The gasoline expenses for performing their searches at the reduced volume and lower prices makes it unreasonable
Copying expenses seem to be an ongoing problem with these people. They request the copies, but do not reimburse for the funds advanced for them. In one case, when you make inquiry they tell you that you need to get the copying expenses approved before submitting your bill. Apparently after you complete the search you need to call them, tell them what the copying expenses are and they will get back to you with a decision after they have spoken to their client. By that time you have already completed the search, and if they approve the copying expenses you have to make a second trip out there to get the copies, further reducing the profit margin of the search because of the gasoline expenses.

Unfortunately, the searchers do not have the clout to defend themselves in this type of situation other than to terminate them as clients and seek replacements. Other than to supplement title searching with income from other sources, I really can't see any solution to the problem. The title companies seem to be interested in cheap labor regardless of quality control. I have been told that they factor the risk into their underwriting charges and also rely on the searcher's e&o coverage.

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