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I think in Victoria they are planning to roll out full electronic conveyancing in the next few years which will definitely make those old titles obsolete. Although as we know with the Victorian government it'll probably cost $4bn and take 10 years to implement :)

As long as the banks hold a mortgage over your property, the certificate of title will be held in the bank's vault for safe keeping. Although these days the land titles office has everything in an electronic database so there's no real 'title deed' - as it is just a printout from the titles...

Best way to pay a large sum of money is via a bank cheque. Go to the bank, tell them how much money you need, pay a small fee and they'll give you the cheque.