How do you know if a car has a lien on it?

This is one of those questions for which there are 50 different answers (well, 51 counting DC). You need to call the DMV (or whoever handles title transfers in your state and ask).

In my state anyways, what you can do in the case of a lost title is you and the seller go to the courthouse, he shows his ID and they transfer the title then and there.