Contracts

An 'arm's length transaction' in real estate means:

AThe buyer and seller are within arm's reach of each other
BThe parties deal independently and without any special relationship that could affect the price✓ Correct
CBoth parties use the same attorney
DThe transaction involves a broker

Explanation

An arm's length transaction involves parties dealing independently and in their own self-interest, with no special relationship (family, business partner) that could affect the price or terms.

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