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If Colin sells the house to the stranger, it would be an arm's length transaction because both parties are independent and acting in their own self-interest.
Arm's length transactions allow both parties to act in their self-interest, while non-arm's length transactions can result in either party using their relationship to affect the sales price of the object.
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.
\u201cArm's length\u201d is an expression which is commonly used to refer to transactions in which two or more unrelated and unaffiliated parties agree to do business, acting independently and in their self-interest.
If Colin sells the house to the stranger, it would be an arm's length transaction because both parties are independent and acting in their own self-interest.
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They are independent entities, each acting in their own self-interest. An example of an arm's-length transaction is a home buyer and a stranger who's selling a house. Each is offering what the other wants, but neither has any obligation to the other. They can try to reach a deal that serves them both.
Example of an Arm's Length Transaction Colin receives an offer from a stranger for $950,000 and from John, who is short on cash, for only $600,000. If Colin sells the house to the stranger, it would be an arm's length transaction because both parties are independent and acting in their own self-interest.
An arm's length transaction is a negotiation between two parties where the parties are not related. This type of event does not involve any insider trading between the parties, and there is no undue influence on either party to accept terms that differ from those currently accepted in the market.
\u201cArm's length\u201d is an expression which is commonly used to refer to transactions in which two or more unrelated and unaffiliated parties agree to do business, acting independently and in their self-interest.
An arm's length transaction is a negotiation between two parties where the parties are not related. This type of event does not involve any insider trading between the parties, and there is no undue influence on either party to accept terms that differ from those currently accepted in the market.

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