Well, what I'm saying here is, that owner had no other way to get the bike legal on the road here in the US. This is no reason to not buy the bike.
I have seen several NSR's for sale that were titled like that....

Not sketchy.... NOT correct, but all your state will know is that you have a TD250, and that's it.
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MC21
04 NSR50R
93 CBR F2
98 CBR F3 track bike
95 VFR750
89 FL400R Pilot
90 FZR 4/600