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[+] Want advice about whether to consider entering the field? - James Guill/VA (10 replies)
2/3/2008 2:25:41 AM (2755 views)

[+] MERS and DOT - Jeanine Johnson/FL (1 reply)
1/31/2008 5:57:24 PM (2682 views)

[+] ASA REAL ESTATE TITLE SERVICES - ARTHUR LIPPMAN/MA (1 reply)
1/31/2008 3:46:37 PM (2725 views)

[+] Red Vision - David Bloys/TX (2 replies)
1/31/2008 3:36:37 PM (4427 views)

[+] I need your help! And So Do Your Local Officials - David Bloys/TX (3 replies)
1/31/2008 1:56:29 PM (3989 views)




[-] Real Estate One aka REO Land Services, Inc. - VIVIAN SLYKER/OH (6 replies)
1/31/2008 1:41:34 PM (3274 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
1/31/2008 3:31:58 PM (3091 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 10:41:54 AM (3019 views)
We seem to keep seeing the same repeated complaints of non-payment for abstracting services, and former clients disappearing into the sunset.  So much of it could be avoided if the abstractors would take the time to gather some information from a client, and insist that it be printed on a search order.

We have already discussed the liability of the agent acting for an undisclosed principal in earlier posts. However, even more avenues of redress for non-payment are open to the abstractor in situations in which the client is acting as an agent for a disclosed principal.
 
Agents properly acting within the capacity of their agency can bind their clients to contract with you for abstracting services. In many cases it is simply a matter of knowing the identity of that party. As far as signing agents are concerned...they have that information available to them when they receive a copy of the HUD 1 form in the document package. The abstractors are less fortunate , and are reliant on the information in the search order.

We have discussed the wisdom of having both your fee and the date of payment for your services printed on the search order. It is also a good idea to request that the identity of the title company and lender who will ultimately benefit from your services be printed on the search order.

In a situation in which you are dealing with a client that requests a search for his client...you are most likely dealing with an agency relationship. If your client is not acting as an agent or if he is acting as an agent for an undisclosed principal...he is liable to you. If he has fully disclosed the identity of his principal, and has not transgressed the scope of his agency...his client (principal) is liable to you. That may be a lender or title company.

When I have been confronted with this situation...I normally sue both the agent and the principal on alternate theories of liability. One count of the complaint is directed at the agent. The second count of the complaint is directed at his client (principal). Seems to work every time. Most often one or the other will want to settle the matter in short order.

I know that many of the abstractors do not have the tenacity to follow through on a suit, and simply give up on an unpaid bill. However, you should know that the majority of these cases never go to trial, and wind up settling.

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Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 12:12:23 PM (3068 views)
Re: Real Estate One aka REO Land Services, Inc. - Kevin Ahern/CT
2/1/2008 12:18:29 PM (3058 views)
Re: Real Estate One aka REO Land Services, Inc. - Dan Zook/NY
2/1/2008 2:43:15 PM (2709 views)
Re: Real Estate One aka REO Land Services, Inc. - Jessica Talley/NJ
2/1/2008 5:09:00 PM (2699 views)

[+] AFX Corp. - Anita Backlund/MN (7 replies)
1/28/2008 11:16:46 PM (2921 views)

[+] Payment from Richmond Title - Jeff Troutman/TN (8 replies)
1/28/2008 7:38:11 AM (3024 views)

[+] Goverment Lien - Howard Demps/FL (1 reply)
1/27/2008 8:00:55 AM (2921 views)

[+] Recidivist Statute Fails to Pass Connecticut Legislature - Kevin Ahern/CT (5 replies)
1/26/2008 8:49:06 AM (2787 views)

Naltea Conference Photos - Jeanine Johnson/FL
1/25/2008 4:36:30 PM (2126 views)

[+] Contemporary Realty Solutions - Virginia Capps/TN (7 replies)
1/25/2008 2:34:47 PM (2916 views)

GET THE FACTS - ANTHONY MUZIO/NY
1/24/2008 7:55:41 PM (2412 views)

[+] Great Comebacks From American Patriots - David Bloys/TX (17 replies)
1/24/2008 4:52:36 PM (3801 views)

[+] Mezzo Settlement Services - trish kerns/PA (14 replies)
1/24/2008 3:22:22 PM (5573 views)


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