Final answer:
option a.The Seller Financing Addendum under TREC allows the seller to cancel the agreement if the buyer fails to provide required qualifying documentation within the specified time limit.
Step-by-step explanation:
The subject in question pertains to the clauses found in a Seller Financing Addendum, specifically under the Texas Real Estate Commission (TREC) regulations. In the event that the buyer fails to provide the necessary qualifying documentation within the specified time frame, the correct answer is a) The seller can cancel the agreement. This implies that if a buyer does not meet the documentation requirement as per the addendum's stipulations, the seller is within their rights to terminate the sales contract. In real estate contracts, the ability to enforce specific terms such as the delivery of documentation and the potential cancellation for non-compliance is a common provision to protect the interests of the involved parties.
This means that if the buyer fails to provide the necessary qualifying documents within the specified time frame, the seller has the right to cancel the agreement. Additionally, both parties are released from any obligations or responsibilities outlined in the contract. The increase in interest rate is not mentioned in the addendum as a consequence of not providing the required documentation.