Hawaii License Law

In Hawaii, the term 'arm's length transaction' in real estate licensing means:

AA. A transaction conducted from a physical distance
BB. A transaction between unrelated parties with no special relationship, conducted under fair market conditions✓ Correct
CC. A transaction requiring the seller's attorney to be present at arm's length from the buyer
DD. A short-term transaction completed within 30 days

Explanation

An arm's length transaction involves independent parties dealing fairly without special relationships, duress, or unusual motivations—the standard for fair market value transactions.

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