Alright, so here’s the deal – we’re about to close on this house we’re buying next week, and out of the blue, the seller hits us with an amendment. They’re changing the type of deed to a Trustee’s Deed instead of a Warranty Deed. Apparently, the house was put into a trust a while back. Now, we’re kind of freaking out trying to figure out what all this means. The title company is MIA because they’re on holiday, so we’re left in the dark for now.
From what I’ve gathered in my initial research, this situation is not exactly comforting. With a Warranty Deed, the seller guarantees that the title is clean and free of any issues. On the other hand, a Trustee’s Deed simply confirms that the seller has the legal authority to sell the property. So, it seems like the risk is mostly on our shoulders, despite having title insurance in place.
I’m wondering what potential problems could arise from this switch. Should we be worried about anything specific? And what questions should we be firing off at the title company, our real estate agent, or even the sellers themselves? Can a trust even issue a Warranty Deed, or is it required to be a Trustee’s Deed in this scenario?
This whole situation is happening in Minnesota, and it’s a cash deal with no financing involved. It feels like we’re in a bit of a pickle, and I’m not sure what steps we should be taking next. Hopefully, we can get some clarity and guidance on this before the closing date creeps up on us.