Real easy in Tx. Seller fills out bill of sale, buyer takes bill of sale to DMV along w photo or pencil tracing of actual vin. They run vin to check if its stolen or has a lein on it. If good they hand you your bill of sale back with a form to fill out, and send you to get a surety bond on the car. You take the bond and bill of sale along with the state form filled out back to the DMV and they put it all in your name with the bond applied against the title. It looks like any other state title but in the upper corner it says bond
That bond stays in effect for 3 years of the date of title issuance. After that you have the state remove the bond from the title and its all yours. Somebody with a second original title floating around has 3 years to claim it. After that the statute of limitations has run out. Without the bond in place however you dont have a leg to stand on as the prev owner or someone with an older title can claim it indefinitely. This allows 3 years for somebody to claim it, after that their title becomes null and void.
The bond is to prevent somebody from finding an old title in their grandpappys sock drawer, running the vin, and claiming the car. Well they can claim the car or the bond. Not both. If the cars a wreck, dont fix it up until the 3 years are past, just collect up parts to rebuild it, and not leave em in the car. This way if it happens its likely they will take the bond money over the old dilapidated car forfeiting it. I have done bonded titles before. Currently have one on the 69 notchback. I know its history though, and that nobody will come for it, still this makes it iron clad once the bond runs out.
The thing about doing the bond title is that the car could be sitting 25 years, and once you apply for the bonded title, its number is now back in the state database, so its not like your hiding it from somebody who has older paperwork. All they have to do is go to the DMV and run a search on their title numbers.