Which of the following is NOT a criterion for an arms-length sale?

An arms-length sale is characterized by the principle that both the buyer and seller operate in their own self-interest without any external pressures or collusion. In this context, the criterion indicating that both parties are well informed reflects the ideal scenario, as it ensures that both participants understand the value of the asset and the terms of the sale. Furthermore, a typical motivation for both parties to engage in the transaction is crucial to signify an absence of undue influence or pressure, indicating a standard market transaction.

The criteria stating that the price represents typical pricing for the area are essential, as an arms-length transaction should reflect fair market value, rooted in comparable sales data and market conditions.

On the other hand, if the seller is under financial distress, this can lead to a scenario where the sale might not reflect a true arms-length transaction. A distressed seller may be compelled to sell quickly and might accept less than fair market value, thereby compromising the integrity of the transaction. This criterion suggests that external pressures are influencing the sale, which runs contrary to the principles of an arms-length transaction.