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What is the definition of arms length transaction in real estate?

In: Deeds and Ownership, Real Estate, Real Estate Buying and Selling, Real Estate Investing [Edit categories]

Answer:

In conveyancing, an arm's length transaction is between people who are not related, not on close terms and who are presumed to have equal bargaining power. For example a deed from a mother to her son for a nominal sum is not an arm's length transaction. A deed from the mother to an independent third party for fair market value would be an arm's length transaction.

First answer by Kluss. Last edit by Kluss. Contributor trust: 700 [recommend contributor ]. Question popularity: 2 [recommend question].

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