Actually, speaking of brand new cars, The State is provided documentation of ownership by the dealership that sells it. That document is known as the Manufacturer's Statement of Origin or MSO.
The State then sends the person / entity that buys the car from the dealer a "Certificate of Title". Note that it is The State that holds the actual title, not the one who only holds a certificate for the real actual title.
The manufacturer (GM, Ford, Chrysler ...) provides an MSO to the dealership. When the dealer sells the car they send the MSO along with the buyer's info to The State, who then issues a Certificate of Title to the buyer.
Many have tried to obtain the MSO directly from the dealer. Some are successful but the majority are not. Keep in mind very few people are even aware of this information.