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Your story sounds invented to me to be honest, since you don't mention how the transaction was legally recorded. And the fact that it is in a place where Bitcoin is illegal makes it even stranger.
If I buy a house or land, I have to go to the notary and the property registry where it is documented that I acquired such property, for X money and that the form of payment is such.
Lately I have seen several stories of this style that talk about using Bitcoin as a means of payment and it gives me that at least some of them have more to do with trying to get merit than with a description of reality.
I can tell you how it happens in Russia. For example, if the transaction amount is less than 3 million rubles or $ 56,000, then to register a transaction for the sale of real estate or land, the inspector only asks the buyer to receive money when making the transaction.The contract says that payment is in cash, but payment in practice can be in bitcoins and gold and euros and dollars.
If the market price of land or real estate is more than $ 56,000, then an expert can conclude that the price of real estate is less than $ 56,000.