Property Valuation
An arm's-length transaction means:
AThe buyer and seller are related
BBoth parties are acting independently without duress and in their own best interests✓ Correct
COnly residential properties are involved
DThe sale price is above market value
Explanation
An arm's-length transaction involves unrelated parties acting freely in their own interests, providing a reliable market value indicator. Related-party or forced sales may not reflect true market value.
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