For a contract for deed, what determines the time adjustment in the sales comparison approach?

• A. The deed transfer date
• B. The date of the contract
• C. The date of payment in full
• D. The date of the financing agreement

Answer: (B)

Time adjustments in the sales comparison approach reflect how market conditions have changed since the date of the sale. In a contract-for-deed, ownership isn’t transferred at signing; the buyer makes payments over time and title stays with the seller until the loan is paid off. Because the sale terms—especially the financing arrangement—are fixed at the contract date, that contract date is the relevant time reference for comparing value. Using the contract date captures the actual terms of the sale and the market context under which those terms were agreed, whereas the deed transfer date doesn’t reflect when the sale terms were set. So the time adjustment is based on the date the contract was entered into.