ACLEAR APPRAISAL LTD.

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The appraiser wants a copy of the purchase and sale agreement.  Is this allowed?

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Not only is this allowed, in fact, it is a requirement.  There appears to be a myth that appraisers are somehow to be kept in the dark and not be provided a copy of the current offer or conditionally agreed purchase price.  There may be circumstances where the client may request that the appraiser not have access to this information however, ordinarily the appraiser is required to not only request this information but they must also document the steps they took to obtain it through commercially accepted and legal methods.  It is common practise for participants in a sales transaction to "inform" the appraiser as to the sale price therefore, it is already a rare occurrence that the appraiser may not be influenced.  It is the appraiser's obligation to support their conclusion of value based on credible research, analysis and calculations and to be impartial to any party or undue influence. 

While the knowledge of the sale price is almost always present the appraiser's full knowledge and understanding of all of the known conditions prerequisite the sale should outweigh the aversion to any bias the sale price alone may influence.  From USPAP 2021-22 FAQ Standards "Rule 1-5(a) requires an appraiser developing a market value real property appraisal, if such information is available to the appraiser in the normal course of business, to: analyze all agreements of sale, options, or listings of the subject property current as of the effective date of the appraisal.  The normal course of business for an appraiser when the property is known to be the subject of a pending transaction is to ask the client for the terms of the agreement, if this request is denied, then the appraiser should make reasonable attempts to obtain this information from other sources through legal means commonly available to and practiced by the appraiser's peers. The Comment to Standards Rules 2-2(a)(x)(3) and (b)(xii)(3) also includes the requirement that:

If such information is unobtainable, a statement on the efforts undertaken by the appraiser to obtain the information is required. If such information is irrelevant, a statement acknowledging the existence of the information and citing its lack of relevance is required."