Arm's Length Sale?

[NC Appraising]

Related seems to be more relevant as compared to acting in his own best interest.

For example, a property listed for sale because of a divorce. Usually one party is not acting in their own best interest. Transaction is still arms length

What Does Arm's Length Mean in Real Estate? The 7 Sale Types Explained - McKissock Learning

What does arm's length mean in real estate? What is arm's length vs. non-arm's length? Read about the seven valid sales types in real estate.

www.mckissock.com

What is an Arm’s Length Transaction?

What is an arm’s length transaction? The question seems simple enough, right? Just mentioning it on an appraiser blog creates a flurry of debate over what exactly is an arm’s length transaction. While doing research for this article, it evoked a lot of emotion from my peers. Everyone has an...

appraisalbuzz.com

 

[Philly19130]

NC Appraising, This property was not listed in MLS, or online, no sale sign etc.

 

[NC Appraising]

Fannie mae

Non-Arm's Length Transactions​

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. Fannie Mae allows non-arm’s length transactions for the purchase of existing properties unless specifically forbidden for the particular scenario, such as delayed financing. For the purchase of newly constructed properties, if the borrower has a relationship or business affiliation (any ownership interest, or employment) with the builder, developer, or seller of the property, Fannie Mae will only purchase mortgage loans secured by a principal residence. Fannie Mae will not purchase mortgage loans on newly constructed homes secured by a second home or investment property if the borrower has a relationship or business affiliation with the builder, developer, or seller of the property.

B2-1.3-01, Purchase Transactions (12/16/2020)

selling-guide.fanniemae.com

 

[djd09]

Can you please clarify why you agree? Thanks

must be sold at 250,000... not a penny more or less

 

[Philly19130]

That was my thinking. If I offer $260 they have to decline.

 

[NC Appraising]

Freddie Mac allows non-arm’s length transactions for the purchase of existing properties
unless specifically forbidden for the particular scenario, such as delayed financing.
• For newly constructed homes secured by a second home or investment property that
are purchase transactions, the borrower may not be affiliated with or related to the
builder, developer or the property seller.

For these purposes, “affiliated with” means
that the borrower may not have an ownership interest in or employment with the
builder, developer or property seller.

 

[Dublin ohio]

That was my thinking. If I offer $260 they have to decline.

You are conflating the relationship between a buyer and seller with restrictions placed on the property. This is obviously a government backed program. But that has no impact on the relationship between the buyer and seller. If you are of the opinion that it is not "arms length". What was the previous relationship between the buyer and seller?

 

[Philly19130]

Related seems to be more relevant as compared to acting in his own best interest.

For example, a property listed for sale because of a divorce. Usually one party is not acting in their own best interest. Transaction is still arms length

What Does Arm's Length Mean in Real Estate? The 7 Sale Types Explained - McKissock Learning

What does arm's length mean in real estate? What is arm's length vs. non-arm's length? Read about the seven valid sales types in real estate.

www.mckissock.com

What is an Arm’s Length Transaction?

What is an arm’s length transaction? The question seems simple enough, right? Just mentioning it on an appraiser blog creates a flurry of debate over what exactly is an arm’s length transaction. While doing research for this article, it evoked a lot of emotion from my peers. Everyone has an...

appraisalbuzz.com

I regards to the divorce scenario wouldn’t both parties(divorcing couple) be acting in their own best interest regarding the sale price. They both want to get the highest price possible which is to me why it is an arm’s length sale. They may not want to sell but when it comes to the sale they are acting with their best interest in mind.

 

[Philly19130]

You are conflating the relationship between a buyer and seller with restrictions placed on the property. This is obviously a government backed program. But that has no impact on the relationship between the buyer and seller. If you are of the opinion that it is not "arms length". What was the previous relationship between the buyer and seller?

So the only criteria for arm’s length is that the seller and buyer are not related?

 

[NC Appraising]

NC Appraising, This property was not listed in MLS, or online, no sale sign etc.

It appears non arms length sets off the red flags with fannie and Freddie.

Are they related, does the buyer work for the devopler, etc.