Adequate time is provided in purchase agreements (whether traditional or auction) to allow for your lawyer to do a title search on a purchased property. You are protected against any unlikely problems with title that could be discovered within the acceptable time period (generally up to 10 business days prior to possession).
The process is no different than a traditional real estate transaction, it is only the method of arriving at a price that is different. All forms, protections and process for listing and purchasing remain the same.