I think you may be getting some miscommunication somewhere. The deed should be recorded at the Registry of Deeds (public record) when the transfer to the bank first happened. The bank does not need to have their original deed in hand to sell you the property. I am assuming this is a foreclosed property. It should have been recorded when they held an auction and took the property from the owner. There are a lot of homes that were foreclosed on incorrectly and it may be tied up in the courts that way. This is something a real estate agent would not know unless the bank (sellers) told them. If not you are right the agent should be verifying that their customer (seller) is the legal owner of the property.