I am doing an ALTA on 6 acres of land in the town in which I live. The title attorneys keep changing the title commitment schedule of exceptions, added another parcel with a new set of restricts, changed them, and then reduced the side of the original parcel. I told them that the price needed to double from our original quote of $4,000 to about $8,000. They said that the revisions to meet their constantly changing title exceptions (which changed about 7 times) are not valid reasons for requesting more $$.
How do y'all handle this. I am curious. There is no way I am going to make much of anything even at $8,000. I am afraid to threaten to cancel my survey because the closing is next week, and whole thing could fall through, and they sue me instead! :pissed:
The title attorney is trying to get the best deal possible for his client. He knows very well any changes that cause you to do more work or take on any more liability should have a cost increase. The only thing you can do is stick to your guns say if you want these extra line items this is the cost.
To not get sued. Do what is in the signed contact and invoice for that price.
A lot depends on how your contract is written and how much of it is supported by law. Under our contract it would be simple. Change the scope change the fee. Pay it or add lien fees...
I structure my contract the same way. Change the scope and I can come back and add additional fees. Just did on a property where the GIS was wrong and I bid on the parcel per tax id and address. The deed actually included two parcels and I let them know it would be an extra 50% or so. Didn't seem to have a problem. Sometimes it is tough dealing with prices, extra fees etc. because we have it beat into our heads that it isn't worth what we are asking. The real problem is that we too often believe them. I am guilty of that as much as anyone.
I agree that this would be more of a contractual issue. The ALTA standards cover this somewhat in #2. Request for Survey: "The scope of work related to such properties should be discussed with the client, lender and insurer, and agreed upon in writing prior to requesting the survey."
Also per #4 Records Research: "Complete copies of the most recent title commitment, the current record description of the property to be surveyed....shall be provided to the surveyor for use in conducting the survey."
This may be water under the bridge to you now, but typically, our contract/scope calls out and references the subject parcel's recording information as well as the issue date (not effective date) of the title commitment provided to us before we price the survey. I would review your scope and contract to see what you are obligated to provide, and possibly open some dialog regarding an addendum for additional fee with whomever signed the contract.
Your contract is to certify to the original commitment. Complete your survey & certify to that only. Negotiate additional services for the revised commitments, due to time expenditures in reviewing the additional documents, platting them, and additional site visits for collections and map checks.
You do Not need to justify your fee. It is what it is.
If they want to go elsewhere, they can and should go away.
If the scope changes in any way then it is a new project and you can determine a fee for that project... it does not matter if it is more or less or just "different". Your choice.
"I have evaluated the project scope and time frame. My fee is $xxx." nothing more.
If you have an existing contract... you can do that scope for the agreed fee. They want something else, then see above.
You contracted for whatever the title commitment reflected when you and your client signed the contract. If the attorney is an authorized agent for your client, once he started making changes, and if there was no provision in your contract for how changes would be handled, he effectively turned it into a T&M contract.
I'm fairly certain that the attorney did not contract with your client a lump sum amount to handle this transaction regardless of changing conditions and requirements. He was retained at a certain hourly rate and charges that rate in 6 minute increments.
Are you selling a map or are you providing a professional service that requires specialized knowledge to determine boundary locations, to relate facts disclosed by physical and documentary evidence, and to recognize potential problems or issues that those facts may present to your client?
Myself, at each change from lender, client, or client attorney, I respond with an email of rate/fee changes. I also let them know that I will not move forward with the requested changes until a written notification of acceptance by my client of my rate/fee changes. Fees usually, 9 times out of 10, never go down since I would have already researched and field surveyed as per the original contract. My ALTA/ACSM Land Title Survey contracts have changed over the past 15 years due to experiences of the good and bad. Stick to your contract and state to everyone that according to the contract I owe A,B,C...
Terry