Which statement below is the proper verification step for a contract-for-deed sale to ensure credibility?

• A. The sale was not arm's-length.
• B. The loan terms were not disclosed
• C. The contract date matched the deed date
• D. That the sale was an arm's-length transaction and neither party was under duress

Answer: (D)

Verifying credibility for a contract-for-deed sale hinges on confirming it was an arm's-length transaction and that neither party was under duress. Contract-for-deed deals can involve seller financing or related-party arrangements that push terms away from market norms, which can distort price and financing conditions. To treat such a sale as a credible comparable in the appraisal, you need evidence that the transaction happened between independent parties with competing interests and without coercion. When both conditions are met—an arm's-length structure and absence of duress—the sale is more likely to represent true market behavior and reflect legitimate market value.

If evidence suggested the parties were not independent or one side faced pressure, the transaction loses credibility as a market reference, and you’d be more cautious about using it or would adjust or exclude it accordingly. Other details, such as whether loan terms were disclosed or whether dates align, are useful corroboration but do not substitute for the fundamental need to confirm neutrality and voluntariness in the deal.