The tenant fails to Cure the Deficiency after receiving a non-payment notice from the landlord, and the landlord does not pursue a valid non-payment eviction action under Minn.

Typically a payoff period with a normal market interest rate -- I believe the IRS states the specific loan interest you'd need to charge (but I could be mistaken, this is just off the top of my head).Either way, there is some validity to your dad's concern.

I feel like my attorneys advice is more valid.

Last option is to just move on to the next deal if you cannot produce a valid POF

My question: is it advisable to get Home Warranty Insurance?

There's no second place trophies/rewards for those who wait for hindsight to validate whether or not the course of action was correct. 

You need to vet the company they used and see if they are insured and there a warranty on their work

I think that using a Warranty Deed to transfer the title may solve this but I have yet to confirm that.

The type of deed, warranty (WD) vs quit claim (QCD), does not have any affect on the coverage of the policy. 

I'm assuming you would have to inform them of your decision and then insurance would no longer be valid but how does the process work?