Agency
Which of the following best describes an 'arm's-length transaction'?
AA transaction between two neighboring property owners
BA transaction between unrelated parties acting independently and in their own self-interest✓ Correct
CA transaction under $100,000
DA transaction requiring AREC approval
Explanation
An arm's-length transaction involves buyers and sellers who are independent, unrelated, and acting in their own self-interest without undue pressure or influence. It is the basis for establishing fair market value.
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