Final answer:
Sellers must disclose the status of permits and compliance with regulations for property improvements; this is true. Reassuring buyers with imperfect information can involve warranties and transparent communication. Dillon's Rule, in contrast, restricts local government powers, which is opposite to the notion of granting freedom and flexibility.
Step-by-step explanation:
The answer to the student's question is A) True. Sellers do have an obligation to disclose whether or not development or building permits were obtained for all improvements done to the property. They must also inform if these improvements comply with all municipal and provincial requirements.
A common way for a seller of goods to reassure a possible buyer when faced with imperfect information is through the provision of warranties, detailed product information, and transparent communication. By offering assurance methods such as money-back guarantees, free trials, or demonstrations, sellers can significantly alleviate the concerns of buyers.