Property Valuation
An 'arm's length transaction' used in the sales comparison approach means:
AA transaction involving properties located within 1 mile of each other
BA transaction between unrelated, independently acting parties with no undue pressure✓ Correct
CA transaction completed in less than 30 days
DA transaction with no financing contingency
Explanation
An arm's length transaction occurs between unrelated parties, each acting in their own self-interest without compulsion, pressure, or unusual circumstances—required for comparable sales to be reliable indicators of market value.
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