An arm's length transaction is one that takes place as if the two parties involved had no pre-existing relationship. If two people are at arm's length from each other, they aren't too close for the sake of a fair deal that is priced in line with market expectations. ...
In real estate, an arm's length transaction iswhen the buyer and seller each act in their own self-interest to try to get the best deal they can. ... To resolve this discrepancy, both sides agree to meet in the middle and sell the home for its fair market value. In fact, this is...
When the parties involved in a deal don’t know each other, it's called an arm’s length transaction. A non-arm's length transaction is a real estate transaction in which the buyer and seller have a pre-existing personal relationship. The type of personal relationship is typically not impo...
and likewise the buyer seeks to make it as low as he/she can. The negotiations for an arm's length transaction result in thearm's length price, which is almost always close to themarket valueof theassetbeingsold. The term is often used inreal estatetransactions because family members often...