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Srb11751, Other/Just Looking in Mesa, AZ

what is a purchase/resale arms lengh residential transaction?

Asked by Srb11751, Mesa, AZ Thu Dec 22, 2011

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My father was the previous owner of this house, with it passing with his estate in 1999. I just saw this phrase here for the first time. I wanted to see the house my mom had lived in. My father put this phrase, another use for it, in his will to be sure none of his heirs inherited or were able to buy the house. So many different uses for legal verbiage.
0 votes Thank Flag Link Sat Apr 19, 2014
Additionally, in a short sale transaction, the lender(s) also may want to ensure that the seller will not remain in the property (rent back from the buyer) after the transaction closes.
0 votes Thank Flag Link Fri Dec 23, 2011
Definition of 'Arm's Length Transaction'
A transaction in which the buyers and sellers of a product act independently and have no relationship to each other. The concept of an arm's length transaction is to ensure that both parties in the deal are acting in their own self interest and are not subject to any pressure or duress from the other party.

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0 votes Thank Flag Link Thu Dec 22, 2011
It is an addendum that most short sales and many bank-owned sales require. It means no party involved (buyer, seller, and brokers) is related or has any business relation to another.
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0 votes Thank Flag Link Thu Dec 22, 2011
An arms length transaction is one where no party is related to one another or the sale is not based on any different terms that an otherwise normal party (buyer or seller) would expect to receive.

This is a big deal with short sales. The banks want to make sure you are not selling to a family member.
0 votes Thank Flag Link Thu Dec 22, 2011
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