Final answer:
The TREC Seller Financing Addendum governs the action a seller can take if a buyer fails to provide necessary documentation. Remedies may include contract termination and potential forfeiture of earnest money, contingent on the contract's terms. Sellers can reassure buyers with imperfect information by providing detailed product descriptions, demonstrating trustworthiness through customer reviews, and offering assurances such as warranties. The correct answer is option a.
Step-by-step explanation:
The TREC promulgated Seller Financing Addendum specifies the remedies available to the seller if the buyer does not provide the required qualifying documentation within the allotted time. Although the given options do not directly answer this scenario, a typical consequence in such contracts might be that the seller may terminate the contract, and whether or not the earnest money is returned would depend on the terms of the contract itself. In real estate matters, the terms of the contract dictate the actions each party is permitted to take, and earnest money could be at stake depending on the terms agreed upon for default.
A way sellers can reassure buyers facing imperfect information include providing thorough product information, showcasing positive customer testimonials or reviews, offering warranties or money-back guarantees, and being transparent about the business processes and product quality. These methods build trust and reduce the uncertainty that commonly accompanies a potential buyer's decision-making process.