Property Valuation
An arm's-length transaction is one that:
AInvolves properties located within one mile of each other
BOccurs between unrelated parties acting in their own self-interest under no duress✓ Correct
CRequires both parties to be represented by agents
DInvolves a loan-to-value ratio of at least 80%
Explanation
An arm's-length transaction is one between unrelated, independent parties, both acting in their own best interests without pressure or duress. Appraisers seek arm's-length comparable sales to ensure they reflect true market value.
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