In Ontario at least, no title wouldn't be an issue at all, to register without the previous permit you just need a bill of sale and sign an affidavit. Then again, we don't actually have titles here, just registrations, known as 'permits'.
If the motor's been checked out and rebuilt, then sure, $1000 would be a reasonable price, it's certainly likely a rebuild cost more than that. If not, you'll have to dive in, and that means at *least* a gasket kit and a whole lotta work.