I don't like it. First, I don't think that an abstractor has any right to hold the property owner responsible for a bill incurred by a title company or bank. The only state I am aware of that allows an lien for a title abstract is New Mexico. In all other states, if the abstractor does work for a title company, the title company is responsible - not the homeowner.
Second, it seems cruel to threaten the homeowner in this manner. They didn't order the search, they most likely don't even know that the abstractor was hired to do it. Why would anyone want to do that to the homeowner? How would you feel if you got a letter like that?
Your friend that does tree removal is different. He would have a statutory right to collect from the homeowner - with a mechanic's lien. In that case, it makes sense to make the homeowner aware before you file the lien to give them a chance to contact the contractor before a lien is filed to take care of the matter. If they don't, the subcontractor actually has the right to file a lien against the homeowner. Abstractors have no such right (except in New Mexico) and thus, this is not a good method for attempting to collect for a search.
Best,
Robert A. Franco
SOURCE OF TITLE
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