The buyer had no right to start demolition on the property before title was recorded. You have a claim against the buyer for trespass -- unless you expressly consented to the buyer entering the property early. Even if you did, the buyer's demolition is what is known as "voluntary waste," and it's actionable, outside of trespass. Also, the buyer is a real estate agent and ought to know better than to start construction
on a property before it closes escrow
-- so, that could work to your benefit in a legal action.
You may also have a claim of malpractice against your former bankruptcy attorney for failing to strip the lien, assuming that it could have been stripped in the former case and was not.
But, you cannot turn the title insurance company into the guilty party here. I'm willing to bet that the preliminary title report shows a disclaimer stating that it cannot be relied upon in determining all of the liens and encumbrances
of the property.
Believe me, I'm not trying to defend the title company -- but, until title is recorded, the title company does not bind its insurance, and it has no liability for anyone's reliance on the preliminary report.
Your contract may have provisions to mediate or arbitrate a settlement. Ultimately, you may be able to work out something with the buyer -- because some of the buyer's money is in escrow right now, and it can't be released without your permission. So, you have leverage. But, this is between you and the buyer (unless you can drag your former bankruptcy lawyer into the mix), and that's where you need to try to either work things out, or sue/arbitrate/mediate.
Please reconsider your rating of my services as poor. I can only answer based upon what you tell me, so if I'm confused, it's not because my service is poor. I'm trying to better understand so that I can help you.
Hope this helps.