Property Valuation
An 'arm's length transaction' in Minnesota appraisal and real estate practice means:
AA transaction involving a small loan amount
BA transaction between unrelated, independent parties acting in their own self-interest with no duress or special relationship✓ Correct
CA transaction completed within 30 days
DA transaction involving only cash with no financing
Explanation
An arm's length transaction is one conducted between unrelated parties, each acting independently and in their own best interest, without undue pressure or influence. Appraisers use arm's length sales as the best indicators of market value. Non-arm's length sales (family transfers, foreclosures) may not reflect true market value.
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