Contract law is one of the most important aspects of the real estate process. As a result, it is important for realtors to have a general understanding of contracts, the rules governing their creation, operation, and enforcement. A contract is an agreement between two or more persons consisting of a promise or mutual promises which the law will enforce, or the performance of which the law in some way will recognize as a duty.

An appraisal is an estimate or opinion of value as of a specific date. The quality and accuracy of an appraisal is due in large part to the qualifications and experience of the appraiser, who must consider and analyze all available information that impacts the value of a property and then follow a logical process in arriving at his or her estimate of value.