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What is an arm's length sale real estate transaction?

The term "arm's length" implies that the transaction is conducted as if the two parties have equal bargaining power and are acting independently. In an arm's length sale real estate transaction, both parties negotiate the terms of the sale, including the purchase price, financing arrangements, and other relevant conditions.

Why is arm's length important in real estate?

The concept of arm's length transactions is crucial in real estate because it helps ensure fairness and transparency in property dealings. Arm's length transactions play a vital role in determining the equitable market value of a product.

What is an arm's length transaction?

Fair and Square Real Estate Sales Arm’s length transactions may sound like something that has to do with buying shirts, but they’re a big part of the real estate business. So what is an arm’s length transaction? Turns out, it doesn’t mean you’re any less involved in buying or selling a home.

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