Property Valuation
A Massachusetts buyer and seller in an 'arm's length transaction' are assumed to be:
ARelated parties with a pre-existing business relationship
BKnowledgeable, unrelated parties each acting in their own best interest without pressure✓ Correct
CRepresented by the same real estate agent
DOperating under a court order to complete the transaction
Explanation
An arm's length transaction assumes that both buyer and seller are knowledgeable, unrelated parties acting in their own self-interest without undue pressure. This is the basis for market value and is required for comparable sales used in appraisals.
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