Property Valuation
Which of the following would be considered an arm's-length transaction for comparable sales purposes?
AA sale between a parent and their child at a discounted price
BA sale between two unrelated parties, each acting in their own best interest✓ Correct
CA foreclosure auction sale
DA short sale under financial distress
Explanation
An arm's-length transaction is one between unrelated, independent parties with no special relationship, each acting in their own self-interest. Distressed sales, foreclosures, and family sales may not qualify as arm's-length.
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