The contract section of the appraisal report form is only important and completed when the appraisal is for the purchase of the subject property. If applicable, you will notice that in the subject section, the 'Purchase Transaction’ box is checked next to the “Assignment Type.” If the appraisal “Assignment Type” is checked as ‘Refinance Transaction’ or ‘Other (describe),’ then the contract section will be left blank.
The appraiser should read and analyze the purchase and sales agreement between the buyer and seller. The contract section reports the analysis as well as key information from the purchase and sales agreement. According to the Uniform Standards of Professional Appraisal Practice (USPAP), 2014-2015, when developing and reporting the results of an appraisal, the appraiser must analyze all agreements of sale as of the effective date of the appraisal. In addition, per Fannie Mae Selling Guide September 29, 2015 the appraiser must indicate whether the contract was analyzed and if not provide an explanation. If analyzed, all fields in the contract section must be completed.