What is the interest rate in the Seller Financing Addendum determined by?

The interest rate in the Seller Financing Addendum is established through negotiation between the parties involved in the real estate transaction. This allows the buyer and seller to agree on terms that reflect their specific financial needs and circumstances, making it adaptable to various situations. This flexibility is important, as interest rates can vary widely based on market conditions, the financial profile of the buyer, and the expectations of the seller.

The other options do not accurately reflect how the interest rate is set. A fixed percentage like 6% does not account for individual negotiations and market fluctuations. TREC (Texas Real Estate Commission) does not set these rates, as their role focuses on regulating real estate practices rather than engaging in individual financing terms. Setting the interest rate at closing would not be practical since both parties should agree on terms beforehand to include them in the financing agreement. Thus, option B correctly emphasizes the importance of mutual agreement in determining the interest rate.