Property Valuation
What does 'arm's length transaction' mean in a Delaware real estate appraisal?
AA transaction where both parties are at least one arm's length apart physically
BA transaction between unrelated parties, each acting in their own interest with reasonable knowledge, and neither under undue compulsion✓ Correct
CA transaction where no attorney is involved
DA transaction conducted at a distance without in-person meetings
Explanation
An arm's-length transaction is one where both parties are independent (not related), knowledgeable, acting in their own best interests, and neither is under unusual compulsion to transact. Arm's-length sales are the basis for market value estimates.
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