Purchase and Sales Contract (P&S)

A purchase and sales contract (P&S) is a written agreement between a buyer and seller that establishes the terms of a real estate transaction. It typically identifies the purchase price, deposit, financing terms, closing date, contingencies and other conditions of the sale.

An appraisal contingency, when included, may allow a buyer to renegotiate or withdraw if the property appraises below the contract price, subject to the specific terms of the agreement. This can affect negotiations when the appraised value differs from the agreed price.

Appraisers receive the purchase contract with the assignment because its terms provide important context for the valuation. Seller concessions, personal property included in the transaction and unusual financing terms may affect how the appraiser analyzes the relationship between the contract price and market value. If the contract changes materially, the appraiser may need an updated copy.