What must a contract state regarding liens against the property?

The correct answer is that a contract must specifically indicate whether the seller has liens against the property. This information is crucial because liens can significantly affect the transfer of ownership and the buyer's rights regarding the property. If there are outstanding liens, they represent legal claims against the property that could complicate the sale or create financial liability for the new owner if not addressed prior to closing.

Understanding the status of any liens also helps ensure that buyers are fully informed about potential risks. If a property has liens, the seller may need to resolve these issues before the sale can be completed, ensuring a clear title can be provided to the buyer. This contractual obligation promotes transparency in real estate transactions and protects both parties involved.

The other options, while related in some context, do not directly pertain to the requirement for a contract regarding liens. Loan conditions can be important but are not specifically about liens. The financial status of the selling party provides an overview of their ability to fulfill obligations but does not directly link to liens on the property. Lastly, information about the second-hand value of the property is relevant for pricing discussions but does not necessarily pertain to the legal implications of liens.