What other information must the appraiser verify regarding the contract for deed?

• A. That the sale was an arm's-length transaction and neither party was under duress.
• B. That the seller has clear title
• C. That the property is zoned correctly
• D. That the buyer has adequate liquidity

Answer: (A)

In valuing a contract-for-deed, the key is that the transaction mirrors true market conditions. The appraiser must verify that the sale was conducted at arm’s length and that neither party was under duress. This ensures the price and terms really reflect typical market behavior, not a special arrangement or pressure that could distort value. If the deal isn’t arm’s-length or if duress was present, the contract-for-deed data wouldn’t reliably indicate market value and would need to be treated with caution or excluded. While factors like title status, zoning, or buyer liquidity matter in other contexts, they don’t directly address whether the contract-for-deed terms represent a normal market transaction.