Bradandkim65…, Home Buyer in Port Saint Lucie, FL

what is a purchase/resale arm's length transaction?

Asked by Bradandkim6548, Port Saint Lucie, FL Thu Dec 9, 2010

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10
Brad&Kim,
Generally it means you aren't buying from a relative or other party where there is a previous relationship or undue influence may be involved. I've included a link to a site with a more complete explanation. I hope this helps.
7 votes Thank Flag Link Thu Dec 9, 2010
Hi Brad and Kim,

On a short sale, the lender normally requires the buyer and seller and realtors to sign an Arms Length Transaction disclosure. Often you have to go before a notary to sign. Basically the lenders just want to ensure there isn't an "insider" buying the property at a discounted price.

Hope this helps.
Alma
3 votes Thank Flag Link Fri Dec 10, 2010
If the partner of the builder was a hospital corporation and the buyer was an employee of the hospital, would that be considered a relationship. Wondering as I know someone who just bought a home originally priced at 429,000 when it was built and just bought it for less than 50,000.
Flag Sat Jul 7, 2012
An arms lenght transaction is one where there are no side deals between the Buyer and Seller. I.E. no money or other consideration exchanging hands to purchase the home. Everything must be on the the HUD-1 Settlement Statement..

David Jaffe-SRES, CDPE
Realtor-Coldwell Banker
2 votes Thank Flag Link Sun Feb 6, 2011
Am emailing because I have been homeless since the people who are currently residing took over my Granparents home I had been living in . The asking price of 314 National Highway LaVale , Maryland 21502 was NOT FOR SALE unless to another family member / at $142,000.00 , the down payment would have been $42,000 to a family member , as we had not really settled the estate and the home was our family home , we were in the process of just getting moved in and i had when the thieves Falsely implied a purchase/resale arms length residential transaction whereas the home was only to be lived in by immediate family members . the realtor who seemed to be doing all the negative work was an ex neighber who tried for years to buy off our land . This sickens me as the equity and Grandmas and Grandpas and uncles Last will and testament was to have the home in our family. I HAVE BEEN HOMLESS SINCE - YOU CAN LOOK AT THE HOME BY TYPING IN 314 National Highway , LaVale , Maryland 21502.
Flag Wed Oct 29, 2014
A transaction in which the parties are dealing from equal bargaining positions, neither party is subject to the other's control or dominant influence, and the transaction is treated with fairness, integrity and legality.
Web Reference: HTTP://WWW.RNOWAK.COM
2 votes Thank Flag Link Thu Dec 9, 2010
Also... a HAFA short sale has a re-sale restriction that will not allow you to sell sooner than 90 days after purchasing. Short Sale "flippers" can no longer do a possibly fraudulent short sale under HAFA.
1 vote Thank Flag Link Sat Dec 11, 2010
if you have made in offer on A house . that is on short sale but you don't have more information abut the house . how can find out more info.
Flag Fri Jun 15, 2012
Arm's length is legal slang meaning that there existed no special relationship between the parties involved in any manner which would taint the result. Arm's length transaction is a transaction without collusion or duress between the parties involved.
1 vote Thank Flag Link Sat Dec 11, 2010
Bradandkim65,

What a great question. You must be involved in a short sale~

When short sale approval comes in, one of the documents that the bank requires is an Arms Length addendum. It assures that no one involved in the contract is ralated and most specifically that the seller is not receiving any funds from the sale of the property. In Arm's length, no one, even the Realtor, can not be related to the seller.

Debbie Albert, PA
Keller Williams of the Treasure Coast
Web Reference: http://www.ronanddebbie.net
1 vote Thank Flag Link Sat Dec 11, 2010
some one selling there home and says that they want so much down,and says you can assume mortgage ,and you pay xxx amount for title transfer. how does that work for someone looking to assume a mortgage?
0 votes Thank Flag Link Tue Aug 12, 2014
thank you all for ur great answers.
0 votes Thank Flag Link Wed Dec 26, 2012
how is the peaple who own 1857 brookwood dr vacaville ca 95687
0 votes Thank Flag Link Sun Dec 16, 2012
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