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Arm's Length Transaction
(redirected from Arms-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.


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The index, based on all arms-length transactions, tracks data of 15,000 "neighborhoods," which is rolled-up to report on the changes in 360 counties, nine census divisions, four regions and the nation overall.
The Company said that following the foreclosure, Laurus sold the assets and intellectual property in an arms-length transaction to a privately held North American company, Riviera Tool, LLC doing business in Michigan as Riviera Tool Acquisition, LLC.
On the face of it, this does not appear to be a commercial, arms-length transaction.
 
 
 
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