Think of it this way, is the title worth $200 to you? In 6 months from now and you still don’t have the car on the road and no title will you be kicking yourself and say I should have just paid $200 for the title?
I’d just pay it or see if you can negotiate. Or at least get it in writing and notarized that by sending him money he will give you the title otherwise when he gets the 200 he could say oh I need 200 more, etc.