I think that this could be fun.
The Lord could be able to give a title to his knights and the ruler to a character. This title would be carried with the signature.
this is simply roleplay, there will be no mechanical effects. But it will be funny to have a member receiving the title of "Sirion's Champion" and them losing the title to another character after a series of tournaments.
Unfortunately I see that mechanical things are more followed that pure RP things. So, if there are a mechanical way to give someone a title them, probably, there will be more people "fighting" for that title and, consecutively, more fun in the game.