A reconstructed title isn't always a bad thing if the car is actually good.

Do they have proof of the error / correction? Is the title currently in the sellers name? The VIN number determines what a car is so I doubt their story is true or the seller is just repeating what the previous owner told them. There is a mechanism for correcting title errors and I've never seen the title being branded after a correction. Most states should have titling rules on their web site, have a look there for rules.

Most titles have a number that determines how many times the car was titled in that state, see if you can track that down. Also look for a date that shows when the car was originally titled in your state and if it came from another state.

Always have a good mechanic look at the car, nothing beats an in person inspection. Car fax and the like are useless other than a semi accurate mileage trail and are really just a shake down of car lots. RE: If a lot doesn't pay $ 1,500 a month to subscribe , they are hiding something. ( This is the actual cost for a larger lot )

Many older cars get hit with a salvage / reconstructed title for minor damage. I had a customer whose 15 ish year old full size Pontiac got " totaled " by a run away shopping cart. It got hit in a rear quarter between the rear wheel and bumper. Thing is the car still would have passed state safety inspection.

Sometimes titles for older cars get lost / owner can't be located / car is abandoned. Many times getting a reconstructed title is the only way to get a title.