Wow; you just left the Real Estate room and went into the Legal room:
Realtors do not like to encroach on the Lawyer's Baliwick.
Since this is "on the fence" I will venture a guess; maybe just a starting point for you:
I think it would make no diff for now; not until the Note is paid or sold.
But it might have Liability consequences.
It might have Tax consequences.
It might mean that you couldn't use it for collateral on a loan.
And it might mean that you would need their co-operation if you tried to sell.