What is transaction what it contains

The concept of an arm's length transaction allows the market 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.

To ensure that the management of company does not act in prejudiced manner to the shareholders of the company. It is more an ethical corporate governance principles.

Generally, no a homeowner cannot sell a short sale to a family member or other related party. This would violate the arm's length transaction requirement of a short sale.

go to the library