The car doesn't look too bad considering the price. What does "sheriff release paperwork" mean? From what I can find, it means your car has been towed, you've paid the fine and towing fee, the sheriff's office has give you a release form, and you can go retrieve your car. I don't see that it has anything to do with ownership or right to sell the car.
I think in some locales it does. If he didn't pay the fine and/or get it registered and show proof, the county will hold it in their impound and will put a lien on it and then get the title (kinda like a mechanics lien) and roll it through their auction, at which time, they'll give you the right paperwork so you can get a title in your name. My guess he had it impounded cuz it didn't have a plate or current registration. I got a couple of cars from the pound here in Sandoval and Bernalillo counties that way. Oh man, I think back on some of the cars I seen co through the pound back in the day, but at the time I either didn't have the space or didn't have the $$$.
Yeah. I can't see the driver side as well but this car looks remarkably rust free except maybe for the spare tire well. The paint's a goner in multiple locations but there are surely worse 77 Malibus in the world.