Some developers include the personal property in the sales contract for the realty and some write up separate sales contracts for realty and personal property. Of course, I’ve also seen some pretty creative accounting when it comes to allocating which is which.

This is one reason appraisers are required to review the sales contract, to identify any non-realty interests that might be included in them. Cash back at closing, 2-week vacations, new cars, 60″ plasma, etc..

Unfortunately, there are enough appraisers out there who haven’t been doing what they’re supposed to do. Enough so that a lot of the developers have becomed accustomed to not providing sales contracts for review and acting surprised when an appraiser asks for one.

That was then and this is now – as others have commented, the lenders are going back to underwriting their loans. And they’re actively looking for sales concessions and other non-realty interests in these transactions.

Anyways, the tax assessment is usually based on the sales price for the realty, but there are exceptions when there are indications the transaction price doesn’t reflect the market value.