Final answer:
The correct statement when a buyer assumes the seller's loan is that the seller must check the buyer's credit history before signing the contract if they deem it important. The seller does not usually have the right to unilaterally terminate the contract after reviewing the buyer's credit history, and providing financial information to the seller is not a universally applicable requirement.
Step-by-step explanation:
If the buyer is assuming the seller's loan, the most factually accurate statement is that the seller must check the buyer's credit history before signing the contract if the credit history is important to them. Essentially, this is because the seller's existing lender will want to ensure that the new borrower (the buyer) is creditworthy and capable of continuing the payments on the loan being assumed. Usually, this involves a credit check and possibly additional financial disclosures; therefore, statement 3 is the correct one.
Statements 1 and 2 are not typically true. The seller does not generally have the right to terminate the contract solely based on reviewing the buyer's credit history after the contract has already been executed. The buyer, on the other hand, while indeed may need to provide financial information to the seller for the purpose of completing transactions surrounding the assumption of the loan, it is more importantly the lender's requirement to ensure their risk is mitigated when the borrower changes.