How uncommon value is added to United States property ownership.

Heard on National Public Radio, a few minutes of an interview. An author explained contrasts between property ownership in the United States and some other countries, such as Peru.

In the United States, a chain of title is carefully recorded, and protected legally. This paper record creates confidence, and enables an owner to use a deed and other documents to secure financing and engage in transactions with unknown persons.

These added assets, documents proclaiming ownership and equity, form a market unto themselves. Value is added!

More than bricks and mortar, based upon the paper, the real estate can be traded, or interests in it - leases, mortgages, title - also have a separate value which may be used by an owner.

It does not matter who the owner is in terms of social or economic status. The quality of the ownership resides in the protected legal environment represented by the various kinds of documents on record.

By contrast, in some nations, like Peru, there is little legal record of ownership, credit, guarantees. And, transactions often depend on the character and personal credibility of the person(s) involved.

It is "who you know" in those circumstances because there is no other test of confidence. Therefore, decisions depend on reputation and direct knowledge of people.

Some of the details about culture may be lost in day-to-day contacts between people. One of the reasons why doing business with strangers in the United States is common and comfortable relies upon the thoroughness of our legal system. And, one of the reasons why knowing or being known is so essential in some other nations may originate in a lack of sophisticated business practices.