In some states, you simply state that you "made it" and they'll issue you what you need. Others? They castrate you for buying something that has no proof of ownership.
Personally, I won't buy if it's supposed to have a title and doesn't. Without it, there's no way to know who owns it-or how many liens are against it, or if it was paid off or anything. Thus, if the owner (or possessor) doesn't have enough responsibility to keep up with the title(s), then they have no way to prove that they actually own it. For all you (as a potential buyer) know, it could belong to whatever bank they financed it through....or it could belong to so-and-so from a different state where it was stolen from (which I have run into in the past).
Don't get yourselves caught up in the mess, and it is...an absolute mess. Or, more specifically it "can" be.
I once traded a pickup truck for TWO Mustangs, an '86 SVO and a '85 hatchback/5.0. It was a good trade until I found out that the '85 had no title from the "seller". After doing months worth of "legwork", I found out that it was reported STOLEN out of Indiana. I had to contact the police in that state, they contacted the local state police who came & verified the VINS, verified the seller's name & address, then got in contact with him, who then got in contact with the seller of the car who sold it to him. That one was a crackhead. Imagine that. Guy was wanted in 2 states for Pos/intent. They caught up with him, sent him to prison for a while (of course back out now). In the meantime, I'm stuck with a car I can't register, title, sell, it just was sitting there as a yard ornament. Finally after 19 months, the Indiana police contacted me via mail and released the car to me. The owner (who sold it to the crackhead) never "found" the title while the sale was made, then the crackhead just sold it to the guy I bought it from. Well the Indiana owner found the title and agreed to sign it over to me with a bill of sale, which was another ordeal....because this stupid state wants basically every single detail of all out-of-state vehicle (titled) sales, they might as well ask for blood and your first born. I finally got it titled and sold it the day the title showed up in the mail. All told it was over 2 years of fiddling with, a piece of paper. Yeah I know it was a car and not a boat, but a titled vehicle, it doesn't matter (here anyway) whether it's a small ATV or if it's an 18 wheeler, a title is a title and is THE legal proof of ownership.