Property Valuation
In South Dakota, an 'arm's length transaction' in real estate means:
AA transaction completed by parties standing next to each other
BA transaction between unrelated parties where both act independently in their own interest without pressure from the other✓ Correct
CA transaction involving no real estate agents
DA transaction completed in less than 30 days
Explanation
An arm's length transaction is one where the buyer and seller are unrelated, both act without duress, and each acts in their own self-interest. Sales between family members, related entities, or under financial distress are typically not arm's length and may not reflect market value.
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