Property Valuation
In Missouri, which of the following best describes 'arm's length transaction' in appraisal terminology?
AA sale where both parties are the same height
BA sale between unrelated, knowledgeable parties each acting in their own best interest without compulsion✓ Correct
CA sale completed within 30 days
DA sale requiring government approval
Explanation
An arm's length transaction (the basis for market value) in Missouri is a sale between unrelated, knowledgeable parties — each acting in their own best interest, free from duress, with reasonable market exposure. Related-party sales, foreclosures, and estate sales may not be arm's length.
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