Posted by Mike on July 22, 2003 at 16:02:00:
Arms length means basically anything that walks talks and looks like a duck is a duck. If you are doing a transaction and the seller is related to the buyer, or the loan borker is related to someone in the transaction, or a corporation owned buy the seller is the buyer. Stuff like that is not legitimately an arms length transaction. Another example might be buying a piece of property worth 100k for $10. noon e would believe that their was not some ulterior or side deal going on.