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Depends on why you want to use the blockchain, I guess. If you want a system to allows anyone to verify ownership of property without 3rd parties (government, etc) being involved then the auxiliary database should work fine.
What purpose were you thinking of, that would be defeated by an aux DB?
The title defines the property and the rights attached to it though.
Like the block chain might be able to confirm who owns the property ID, but not what is defined by that property ID. The only way to confirm what is represented by a given property ID is... by referring to a trusted authority which can provide the title.
Property ownership is much more complicated than just an address and a name. A title defines the boundaries of the property, and confers many and varied legal rights.