Arm's Length Transaction

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Arm's Length Transaction

A transaction in which the buyer and the seller have no significant, prior relationship. In an arm's length transaction, neither party has an incentive to act against his/her own interest. That is, the seller seeks to make the price as high as he/she can, and likewise the buyer seeks to make it as low as he/she can. The negotiations for an arm's length transaction result in the arm's length price, which is almost always close to the market value of the asset being sold. The term is often used in real estate transactions because family members often sell property to each other at something other than the arm's length price.
References in periodicals archive ?
Stakeholder") is very pleased to announce that it has entered into an arm's length agreement with a syndicate of local prospectors (the "Vendors") whereby it may earn a 100% interest in the 23-claim Sourdough Hill property located in the Keno Hill Silver Camp of central Yukon approximately 330 km north of Whitehorse.
In other words, it arrogates to the tax authorities the right to disregard a genuine arm's length agreement where such agreements are "uncertain" for one of the participants, a situation generally not observed in unrelated party dealings.
Rare Method") (TSX Venture Exchange, Tier 1 listed under symbol RAM) today announced it has significantly expanded its presence in the United States market by signing an arm's length Agreement and Plan of Merger to acquire BBCJ Ventures Inc.
He said it is important to use the applicable federal rates for repayment agreements to further substantiate an arm's length agreement.
V: AVC) (Pink Sheets: RMRCF) is pleased to announce that it has entered into an arm's length agreement with Vanadium International Corp.
the "Company")(TSX Venture: PCV) advises that it has entered into an arm's length agreement with Mr.
Howard Phee announces the signing of an arm's length agreement to acquire a one hundred percent (100%) interest in SecureIT Investigations & Consulting Inc.
Aurora Metals (BVI) Limited ("the Company") (OTCBB:AURMF), announces that it has entered into an arm's length agreement with two private companies ("Lessors") for exploration for platinum group metals ("PGM"), and nickel-copper-cobalt mineralization, in the Stillwater Complex, Montana.
Base sourcing recommendations on pre-established requirements and total cost of ownership to ensure equal opportunities for suppliers and an arm's length agreement.
today announces that it has entered into an arm's length agreement with a private investor, for a non-brokered private placement of 1,000,000 units at a price of $1.
Boston has also entered into an arm's length agreement to purchase a 210 suite rental property located in Winnipeg, Manitoba for a purchase price of $4,750,000.
Kempton has also announced that it has entered into an arm's length agreement with Gensel Biotechnologies Inc.