Domain Ownership Verification with TXT Record
An administrator is setting up a new Microsoft 365 tenant and has added the custom domain 'contoso.com'. The domain status shows 'Pending verification'. Which type of DNS record must the administrator add to the public DNS zone to complete domain ownership verification?
Quick Answer
The answer is a TXT record, because domain ownership verification in Microsoft 365 requires you to add a specific TXT record containing the unique verification string provided by the admin center to your public DNS zone. This works by allowing Microsoft to query your DNS and match the value, proving you control the domain as defined by RFC 1035. On the MS-102 exam, this scenario tests your understanding of the domain setup workflow, often appearing as a step where the domain status shows "Pending verification" after adding a custom domain like contoso.com. A common trap is confusing TXT records with MX or CNAME records, but remember that verification is purely about proving ownership, not routing mail or services. For a memory tip, think "TXT for Test" — the TXT record is the test that confirms you own the domain before any other DNS changes are made.
⚠ Common exam trap
Many exam-takers confuse the TXT record used for domain verification with the SPF record, which is also a TXT record but serves a completely different purpose, leading them to select SPF instead of the generic TXT record option.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
TXT record
To verify domain ownership in Microsoft 365, you must add a TXT record containing the unique verification string provided by the Microsoft 365 admin center to the public DNS zone. The TXT record proves you control the domain by allowing Microsoft to query the DNS and match the value. This is the standard method defined by RFC 1035 for domain validation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
MX record
Why it's wrong here
An MX record routes mail and cannot prove domain ownership; Microsoft 365 verification expects a TXT record containing the provided value. MX records are added later for Exchange Online mail flow, not for the ownership check itself.
- ✓
TXT record
Why this is correct
A TXT record proves ownership without affecting mail flow, unlike MX records which route email. Microsoft Entra ID reads the unique value at the zone apex, so adding it to the public DNS zone resolves the 'Pending verification' status and confirms the tenant controls contoso.com.
- ✗
CNAME record
Why it's wrong here
A CNAME record aliases one hostname to another and is used for services such as Autodiscover, not for the ownership token Microsoft 365 issues. Verification requires a TXT record holding the unique value, which CNAME cannot supply.
- ✗
SPF record
Why it's wrong here
SPF authorises sending mail servers; it cannot prove domain ownership. Microsoft 365 verifies custom domains with a TXT record containing a unique token, or an MX record pointing to the tenant. SPF is added later to support email authentication and anti-spoofing, so it is the wrong record type for this verification step.
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Microsoft 365 Admin Center
Key term
Microsoft 365 tenant
A Microsoft 365 tenant is a dedicated, isolated instance of Microsoft 365 services created for an organization when they sign up for a subscription.
Key term
Custom domain
A custom domain is a personalized internet address (like contoso.com) that you can use with cloud services instead of the default domain provided by the service provider.
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Same concept, more angles
4 more ways this is tested on MS-102
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An administrator has added the custom domain 'fabrikam.com' to their Microsoft 365 tenant and is now ready to verify ownership. Which type of DNS record should the administrator create in the public DNS zone to complete the verification?
easy- A.MX record
- ✓ B.TXT record
- C.CNAME record
- D.record
Why B: To verify domain ownership in Microsoft 365, the administrator must create a TXT record in the public DNS zone containing a specific verification string provided by the Microsoft 365 admin center. The TXT record is the standard DNS record type used for domain ownership verification because it can store arbitrary text data without affecting email routing or other services, and Microsoft 365 checks for this record to confirm the domain is under the administrator's control.
Variation 2. A company has just purchased Microsoft 365 Business Standard and added the custom domain 'fabrikam.com' to the tenant. They want to verify domain ownership. Which DNS record type must they add to their DNS provider?
easy- A.MX record
- B.CNAME record
- ✓ C.TXT record
- D.SPF record
Why C: To verify domain ownership in Microsoft 365, you must add a TXT record containing a unique verification string provided by the Microsoft 365 admin center. The TXT record is the standard DNS record type used for domain validation because it can store arbitrary text data without affecting email routing or other services. Microsoft 365 checks for this specific TXT record to confirm you control the domain.
Variation 3. An organization has registered the domain contoso.com and added it to their Microsoft 365 tenant. What is the next step to use this domain for user email addresses?
medium- ✓ A.Add a DNS TXT record provided by Microsoft to the domain registrar
- B.Create user accounts with the new domain
- C.Configure Exchange Online connectors
- D.Set up MX records for email routing
Why A: After adding a custom domain to Microsoft 365, the domain's ownership must be verified by adding a specific DNS TXT record provided by Microsoft at the domain registrar. This verification proves you control the domain and is a prerequisite before you can assign user email addresses or configure other DNS records like MX. Without this step, Microsoft 365 will not trust the domain for email routing.
Variation 4. After adding a custom domain name to a Microsoft 365 tenant, what is the first step the administrator must complete before users can sign in using the custom domain?
easy- A.Add the domain as an accepted domain in Exchange Online
- B.Set the custom domain as the default domain for new users
- ✓ C.Verify domain ownership by adding a DNS TXT record
- D.Create user accounts with usernames ending with the custom domain
Why C: Before a custom domain can be used for user sign-ins or email routing in Microsoft 365, the administrator must prove ownership of the domain. This is done by adding a specific DNS TXT record provided by the Microsoft 365 domain setup wizard. Until the TXT record is verified, the domain remains unverified and cannot be used for any Microsoft 365 services.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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