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What is considered a non-arm's length transaction?

A non-arm's length transaction occurs when the buyer and seller have a personal relationship. A deal between friends, family or co-workers is considered to be a non-arm's length transaction.

What is nominal non arms length sale?

Non-arm's length transactions are purchase transactions in which there is a relationship or business affiliation between the seller and the buyer of the property. Fannie Mae allows non-arm’s length transactions for the purchase of existing properties unless specifically forbidden for the particular scenario, such as delayed financing.

What is non arms length transactions?

What Is a Non-Arm's Length Transaction? In a non-arm's length transaction, the seller and buyer have a connection by marriage, family or other dealings, while the parties in an arm's length transaction have no connection.

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