Legal Definitions - Record owner

A record owner is the individual or entity whose name is officially registered on the public records or formal documents as the owner of an asset. This means their ownership is formally recognized by the relevant authorities, such as a county recorder's office for real estate, a state's department of motor vehicles for a car, or a transfer agent for stocks. While the record owner holds the legal title, they may not always be the person or entity who ultimately benefits from or controls the asset; that person is often referred to as the "beneficial owner."

• Example 1: Real Estate Held in Trust

  Imagine a family creates a trust to manage their vacation home. The trust document specifies that the "Evergreen Family Trust" is the legal entity that owns the property. When you look at the county's property records, the deed for the vacation home lists the "Evergreen Family Trust" as the owner.

  In this scenario, the Evergreen Family Trust is the record owner. The individual family members who are beneficiaries of the trust are the beneficial owners, as they are the ones who get to use the home and benefit from its value, even though their names aren't directly on the deed.

• Example 2: Investment Accounts

  A financial institution, such as a brokerage firm, often holds shares of stock on behalf of its clients in what's known as "street name." For instance, if Sarah buys 100 shares of XYZ Corp. through her brokerage account, the official records of XYZ Corp.'s stock registrar might show the brokerage firm as the owner of those shares, not Sarah directly.

  Here, the brokerage firm is the record owner of Sarah's shares. Sarah is the beneficial owner because she has all the rights to the profits, losses, and voting power associated with those shares, even though her name doesn't appear on the company's official shareholder list.

• Example 3: Company Vehicles

  A small business, "Swift Deliveries LLC," purchases a fleet of vans for its delivery operations. When the vans are registered with the state's Department of Motor Vehicles, the registration documents list "Swift Deliveries LLC" as the owner of each vehicle.

  In this case, Swift Deliveries LLC is the record owner of the vans. Even though individual employees drive the vans and benefit from their use in performing their jobs, the company itself holds the official title and is responsible for the vehicles' registration and legal compliance.