Property Valuation
In Hawaii, what does 'arm's length transaction' mean for comparable sales selection in appraisal?
AA. A sale at a distance, such as online or through an auction
BB. A sale between unrelated parties under normal market conditions without duress✓ Correct
CC. A sale requiring at least 3 months of marketing time
DD. A sale requiring all parties to maintain physical distance during signing
Explanation
An arm's length transaction is a sale between unrelated, independent parties with no unusual relationship or pressure, representing true market conditions appropriate for appraisal comparison.
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