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An Arm's Length Transaction in real estate refers to a deal between unrelated parties, conducted under normal market conditions without undue influence. It contrasts with a Non-Arm's Length Transaction, which involves related parties and may not reflect true market value. The distinction is crucial for accurate pricing, tax assessment, and avoiding potential conflicts of interest. Understanding Arm's Length vs Non-Arm's Length is important for buyers, sellers, lenders, and regulators.

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