What is a Source of Record in Real Estate?
What is a Source of Record in Real Estate?
In real estate, the term “Source of Record” refers to the official, authoritative repository of information about a property or real estate transaction. It is the system or record-keeping entity that is legally recognized (or contractually designated) as holding the most accurate, updated, and verifiable data. Here are some key points:
- County Records (Public Record):
- In the United States, county recorder’s offices (or similar local government bodies) are often the source of record for property deeds, liens, and ownership.
- These offices maintain the official documents that establish and track property ownership, boundaries, and any encumbrances.
- MLS (Multiple Listing Service):
- In the context of listings, real estate agents and brokers treat the local Multiple Listing Service database as the source of record for active property listings, status changes, and transaction details.
- MLS data is considered the most “official” or up-to-date for properties on the market, especially in areas that rely heavily on cooperative listing systems.
- Title Companies:
- When verifying ownership and clarifying legal status (e.g., during escrow), title companies consult county records and other databases to confirm chain of title and any liens.
- Their title reports compile data from these authoritative sources of record.
- Why “Source of Record” Matters:
- Accuracy and Reliability: Real estate professionals, lenders, and buyers rely on information from the recognized source of record to ensure they are using the most accurate data about a property (ownership, square footage, boundary lines, liens, etc.).
- Legal Verification: In the event of disputes or legal proceedings, data from the recognized source of record typically carries the greatest evidentiary weight.
- Regulatory and Compliance Requirements: Financial institutions and regulators require verifiable sources to confirm that all real estate transactions and listings meet legal guidelines.
A Source of Record is the go-to repository or database for validated and enforceable property or transaction information. This can be a government office (e.g., county registrar), an MLS for listings, or a title company’s compiled records—whichever entity is recognized as holding the official version of the data in question.
