Today, we will talk about arm's length transactions. An arm's length transaction refers to a business deal in which buyers and sellers act independently without one party influencing the other. This type of transaction is important in real estate deals and can have legal and tax implications. Non-arm's length transactions involve parties who have an existing relationship, such as family members or related shareholders. One of the main benefits of arm's length transactions is that the transaction is fair and equitable, especially in real estate deals.
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