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 ?
In a regulatory filing last night, Alteryx noted that PwC has purchased the company's products and services from time to time in the ordinary course of business in arms-length transactions. The company's sales to PwC have been immaterial to date, including in 2018.
Will more people purchase and service their own policies online as arms-length transactions, thus eliminating the need for us middlemen?
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.
He said Tokyo's financial system needed to move away from "non arms-length transactions" between the financial sector and the non-financial corporates.
The OCC's approval of Zions' application requires the bank to conduct arms-length transactions with the subsidiary.