How do you check whether the domain name is stolen?

If you are purchasing or trading domain names, how do you ensure that the domain name is not stolen, so that there will be no dispute at a later date. Is there any free way find out the domain history since the last registration.

The domain register at whois lookup should match with the seller information who is selling the domain to you. If it does not match up, you should not proceed with the sale to be on the safer side.