Think: Bearer Bond, only with real estate.
The deed was written. You have the signed papers in your hand. They confirm in writing and with signatures that you are the proud new owner of 123 Main Street in Wherevertown, USA.
But then you go to the county clerk's office to double check the filings, and the previous "owner" had an unrecorded deed.
So...did she own the property or not? She did sell it to you...or rather, you paid her $187,350 for the property. And, um...what now? Hm...so you call her and, how odd...her cell phone says, "The number you have called is no longer in service..."
Next time, see: Title Insurance. See: Title Search.
Related or Semi-related Video
Finance: What is a Bearer Bond, or Beare...20 Views
Finance a la shmoop... what is a bearer bond or bearer stock alright you know
that saying possession is nine-tenths of the law
right well that's how bearer bonds and stocks work if you have the paper [Man presenting a bond]
representing the bond or stock aka the bond or stock certificate itself in your
hot little hands or wallet well then you own the bond or stock whether you stole
it or bought it or you know 3D printed it...In bearer bonds and
stocks there's no record or tracing of who bought or owned the bond or stock
sort of the opposite of how Bitcoin works and because of this non tracing [Money in a laundry machine]
and the ease with which money could be laundered for our kindly loving
terrorist friends bearer bonds and stocks are not very common today because
investors simply don't like the idea that their precious assets can be stolen [Thief running from police with money]
and then used to you know match plaid with stripes to counter this anonymity
most securities are in fact registered meaning that ownership is filed
officially with a brokerage or an issuer ie the company itself so that money can [A tracker appears]
be tracked and well taxed all over the world and note that one way bearer bonds
or stocks are dealt with in the fashion realm is to you know simply get rid of
the E don't look....[Man walking on a catwalk with no clothes]
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