Tried to get title search but it’s too late it seem and title company does not guaranty anything after charging $500.

But it's still...whole life insurance.

Ensure the state provides a clear title upon sale.

Quote from @Carl Rowles: When you insure a SFH rental property, do you try to adjust and of the coverage amounts?

In fact, he says he transferred the title to himself, to "protect" his "investment".

The most reliable method to locate liens and their positions is to conduct a title search through a title company.

You'll need to hire a title company to find out. 

The insurance payout also impacts your taxable gain.

Even if they had renters insurance, it comes with a $500 - $1,000 deductible just like your insurance.

Gifting equity in a house may be more trouble than it is worth if you are not near the life-time exclusion1) Potentially having to get the property appraised everytime an equity is gifted2) Having a title company update the title every time3) Exemption of the gift tax return is normally for cash gifts below the annual gift tax exclusion, you may still need to file if you gift non-cash4) If there is partial ownership over several years, having to properly pro-rate certain items such as real estate taxes, mortgage interest and rental income if the property is a rentalBest of luck