Final answer:
An Earnest Money Agreement (REPC) usually does not reveal title exceptions. Imperfect information, such as undisclosed property issues, can lead to difficulties in agreeing on a price, as it affects the valuation from the perspectives of both buyer and seller.
Step-by-step explanation:
An Earnest Money Agreement (REPC) is a critical document in real estate transactions that outlines the terms of the sale, including the property address, the names of the buyer and seller, and the personal property to be included in the sale.
However, this agreement typically does not reveal title exceptions unless specifically addressed within its provisions. Title exceptions can affect the value and usability of a property, which is vital information for both parties.
Regarding why it might be difficult for a buyer and seller to agree on a price when imperfect information exists, the lack of transparency can create uncertainty about the property's actual market value.
Imperfect information may include undisclosed defects, uncertainties about property boundaries, or other factors that can affect valuation. Without full knowledge, the buyer may be unwilling to meet the seller's price, fearing overpayment, while the seller may resist lowering the price, worried about undervaluation.