Unique identifiers exist for everything in a system that needs accurate identification, tracking, and record keeping. They make it possible to connect and communicate data for people, places, and things, such as social security numbers, bank account numbers, and vehicle identification numbers. But property listings are a little different.
Even though there are various ways to identify properties, there is no standardized global number that connects and communicates all information for a single property between public data sources. The multiple public data sources that hold property information don’t talk to each other, so there tends to be overlapping and incomplete data for each property.
Because of this, there is no way to instantly get the full picture of a property’s current dataset without going through the complicated process of cleaning that data to be ready for use.
How properties are currently identified
Property identifiers are unique codes or numbers assigned to each property for ensuring accurate identification and facilitating ownership rights, leasing, renting, conveyance, and municipal taxation. A single property can have as many as over a dozen different identification numbers, including a parcel ID, assessor’s parcel number (APN), property identification number (PIN), lot number, registry number, street address, tax identification number (TIN), deed number, and many others.
Some original property identifiers date back to the 1600s, such as the metes and bounds system that some states still use today. Others were slowly added on top of that throughout the centuries, starting with the Public Land Survey System (PLSS) in 1785, which was the first standardized system for surveying land and dividing the U.S. western territories into townships and sections for sale and development.
The reason why there are so many different identifiers for a single property is because they serve various purposes and are used by different real estate entities, such as government agencies, tax authorities, legal systems, and real estate professionals.
For example, APNs, parcel IDs, and TINs were created to collect property taxes, while deed numbers were created to track ownership in legal and historical property records. Like deed numbers, registry numbers also track ownership but are instead assigned to a property in the land registry.
Then there are other identifiers, such as street addresses, that were developed by municipalities for easier location tracking, navigation, mailing purposes, and overall city management.
The challenges of not having a global property identifier
Property identification becomes increasingly convoluted when identification numbers don’t line up. A single property can have multiple APNs, PINs, parcel IDs, lot numbers, and survey numbers, among many other possible misalignments.
This is especially true for street addresses. Address formats are inconsistent with misspellings and data entry errors, causing missing data and duplicated records. This creates data fragmentation and inconsistency of property data across different systems.
Imagine how messy it becomes when attempting to clean up property data from multiple unreliable datasets. It is a task that requires significant time, resources, and expertise to complete, and is not something that can be done easily without a well-structured approach and the right tools in place.
In the real world, these challenges could translate to delays in property transactions, potential legal disputes over property boundaries and ownership, and inefficiencies in urban planning and development. Inaccurate or inconsistent data can also lead to poor or delayed decision-making for home buyers, sellers, real investors, lenders, and government bodies, ultimately impacting the overall health and transparency of the real estate market.
What a single unique property identifier could look like
Merging these varied systems into a single, standardized format is not something that can happen overnight. The system of property identification must adapt to the dynamic environment where land parcels are continually subdivided, new structures emerge, and existing ones undergo remodeling and expansion.
A standardized global property ID would need to integrate extensive property data from multiple reliable sources, including public records, nationwide data providers, and proprietary databases.
At first glance, assigning a unique identifier for properties seems straightforward. We imagine a house with a specific address, a county-assigned lot and block number, and a precise location marked by longitude and latitude. However, there is a complexity to what constitutes as a property.
Properties can be classified as vacant land zoned for residential, commercial, industrial, agricultural, recreational, or special purposes like hospital campuses. Structures can exist above or below ground, including caves, shelters, and wells. Residential properties might be single-family homes, multi-family homes, townhouses, apartments, condominiums, cooperative housing, or mobile homes. Commercial properties could be office buildings, retail spaces, shopping centers, warehouses, distribution centers, manufacturing plants, towers, or even roadside billboards.
A property identifier must support various requirements and hierarchies. It can represent the land, ground rights, air rights, buildings, or specific units within buildings, including parking spots.
There is a standardized identifier called the RESO Universal Property Identifier (UPI) that seeks to solve this with a single unique ID that includes both parcel numbers and the geographic jurisdictions of the authorities that issued them. It was designed by the Real Estate Standards Organization (RESO), an organization that develops and promotes data standards and processes to facilitate the exchange of real estate information.
The UPI can be built into property records under a public use license but is not yet widely standardized or implemented across all public data sources.
The importance of making data more accessible
Any home buying or selling decision is not possible without sufficient and timely access to property data.
A standardized unique property identifier would transform the real estate market. With that standardization of data, there would no longer be as many delays in transactions and planning that often gridlock real estate decisions.
People would view a property and instantly get all the information they need with no missing data. This would enable investors and homebuyers to make a well-informed decision much more quickly and create a more seamless closing process.
At Xome, we use advanced technology and machine learning to analyze and cross-reference property data to ensure unique identification of properties, appropriate association with related properties, and eliminate duplication. This helps us detect and correct discrepancies in property records and enhance our data integrity and reliability.
The more our users and customers have instant access to reliable data, the quicker they can achieve their goals.
To learn more about how Xome is leading advancements in real estate technology and innovation, browse our other articles on the Xome Tech Hub.
