The way vehicle transfers are handled varies from state to state but here, in Victoria, if I were to sell a car, I submit a "Notice of Disposal" to the registration authority (VicRoads). The buyer submits a "Notice of Acquisition" along with a road worthiness certificate and a fee to the same authority. The transfer is made and it's finished. Driver's license numbers are a part of those forms so VicRoads' computer matches it all together There is no paperwork that goes with a car - not even registration. It's all electronic.
What happens in your country if the title is lost or destroyed? How difficult is it to fake a title? To me, it seems a cumbersome system but I guess if that's what people are familiar with..........