If the breeder has a good track record of producing solid, workable, sane dogs, I would not worry so much about the dam not being titled - I have seen Danger work and liked him alot.
The pups are too young to let socialize together....maybe at 5-6 weeks, when mom is not as concerned and wants away from them, she can let him with the other pups.
If you decline the pup, what does your contract say? Since her required deposit was $200, and you gave her $500.....I would ask for the difference of $300 to be returned if you decide not to take the pup.
Csabre Sch1, Hexe Sch2, SG Bengal, Lynx, Komet, Kira HGH & Kougar v Wolfstraum ~ Ziberia IPO1 ~ ATB Basha, Kougar & Kyra, Fenja, Sch3s, Cito, Sch2, Danger RH & Alice Sch1s ~Kelsey