Public Records

Public records are government-maintained documents that are legally accessible to anyone and provide constructive notice of matters relating to real property. In the context of mortgage note investing, public records include deeds, mortgages, assignments, liens, judgments, lis pendens, tax records, and other instruments recorded at the county level. These records form the documentary backbone of every real estate transaction and are the primary tool note investors use to verify what they are buying.

What Gets Recorded

Every county in the United States maintains a recorder's office (sometimes called the register of deeds or clerk of court) where real estate documents are filed and indexed. Once a document is recorded, it becomes part of the public record and provides constructive notice — meaning anyone is legally presumed to know about it, whether or not they actually searched for it.

How Note Investors Use Public Records

Verifying Ownership and Chain of Title

Before purchasing a loan, investors check the chain of title to confirm that the borrower still owns the property and that the mortgage lien is properly recorded. Every time a note changes hands, the new owner should record an assignment of mortgage. The chain of recorded assignments should trace an unbroken path from the original lender through every subsequent holder to the current seller. Gaps in this chain — called a broken chain of title — create legal risk and may need to be corrected before the loan can be enforced.

Confirming Lien Position

Public records reveal the lien position of your mortgage relative to other encumbrances on the property. Recording dates generally establish priority — the first mortgage recorded has the senior position. During due diligence, investors search for other recorded liens that could affect their investment, including tax liens, judgment liens, and HOA liens that may take priority in certain jurisdictions.

Researching Property Taxes

County tax records — typically maintained by the county assessor or tax collector — show whether property taxes are current or delinquent. Delinquent taxes can result in a tax lien or tax sale that takes priority over the mortgage, making this one of the most critical public records checks in note due diligence.

Market Intelligence

Because public records are available to anyone, they double as a market research tool. Note investors can track who is buying and selling notes in specific counties by monitoring recorded assignments. Over time, recognizing entity names across multiple recordings reveals the active players in a market — hedge funds, specialty servicers, and established investors — providing competitive intelligence not available through any other channel.

Accessing Public Records

Public records access varies significantly by county:

For counties with online portals, investors can perform much of their title and tax research for free using a web browser. For counties that have not digitized their records, a title company sends an abstractor — a researcher who physically visits the county office to pull and scan documents.

Public Records and Delegability

Because public records are, by definition, available to anyone, this research is highly delegable. Unlike credit report analysis or borrower communication — which involve sensitive personal data — county record research can be performed by a virtual assistant with a web browser and a structured spreadsheet. This makes public records research one of the most scalable parts of the due diligence workflow, especially for investors processing large tapes.

The Bottom Line

Public records are the note investor's primary source of truth for property and lien information. They verify what the seller claims, reveal risks the seller may not disclose, and provide the legal foundation for enforcing your rights as a lienholder. Every dollar spent on a note purchase is ultimately secured by a lien that exists — or does not exist — in the public record. Checking it is not optional.