Property Valuation
In South Carolina, what is the purpose of an 'arm's length transaction' in determining market value?
AIt ensures both parties are physically present at closing
BIt describes a transaction where both parties act independently and in their self-interest, ensuring market price reflects true market value✓ Correct
CIt requires a minimum distance between property and road
DIt is a term used only in commercial appraisals
Explanation
An arm's length transaction occurs when buyer and seller are unrelated, act without undue pressure, and each seeks the best deal. Such transactions reflect true market value and are the basis for comparable sales in appraisals.
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