Here we have the bike when I bought it; a 1981 CB125s. The bike was running, wiring was a mess, engine had compression but the tranny wasn't optimal. In fact 5th gear just didn't work. The frame had a lot of surface rust, the fenders were all dinged up, the forks were pitted. The bike was pretty much a mess. A running mess at least. It was registered out of state, had the title though. Ended up paying around 200 dollars to get it registered in California.
On a site note for reader's reference, you don't always need a title in hand to register and title a bike. Especially bikes from the early 80's and before. Don't believe what you read online. If you are thinking about buying a bike that the owner says is out of the system, ask them for the vin and call up your local DMV or CHP and tell them you are considering buying a bike but would like to run the VIN to make sure its not stolen. They'll run it and hopefully end up telling you its out of the system. Which is good. From there, get a bill of sale from whomever you are buying it (*cough*: or you make one up) Go to the DMV, tell them you bought an old bike which only had bill of sale. Bring the bike with you to the DMV, they will run the VIN and tell you its out of the system, they might request you take it to the CHP and have them run the VIN too and the CHP will fill out a VIN verification form for you. I've also heard you can take it to local police. Go back to the DMV with your verification form and from there you get your title!