Final answer:
True, the absence of a real property report can cause difficulties in a real estate transaction, as it introduces imperfect information, causing buyers to be cautious and unable to confidently determine the property's value. Sellers may struggle to communicate the quality of their property without tangible proof, impacting the final price.
Step-by-step explanation:
True: The absence of a real property report may indeed create difficulty for a seller in the terms of a potential transaction. Imperfect information often leads to challenges in economic transactions due to the uncertainty it introduces regarding the quality and characteristics of the real estate being sold. This lack of information can cause buyers to be reluctant since they cannot assess the product's true value, making it difficult for them to agree on a fair price. A real property report would typically provide comprehensive details about the property, including its boundaries, improvements, and any encroachments from or onto neighboring properties. Without it, there is increased risk for the buyer, who might be concerned about potential legal disputes or unknown liabilities.
The difficulty in agreeing on a price occurs because both buyers and sellers operate with imperfect information. Sellers might find it particularly hard to demonstrate the true value of their property, leading to a situation where high-quality goods cannot fetch a price that reflects their worth.