Business Address
Law Office of Randall A. Fischer P.A. At Stuart

2100 SE Ocean Blvd #203, Stuart,
Martin, Florida 34996
Phone: (772) 463-7737

Randall A. Fischer, P.A.

725 SE Port St Lucie Blvd #206, Port St. Lucie
St. Lucie, Florida 34984-5232
Phone: (772) 463-7738

Randall A. Fischer, P.A. Law Office At Jupiter

1080 East Indiantown Road #104
Jupiter, Florida 33477
Phone: (561) 316-7111

Twitter Feed

What does Arm’s Length Mean?

What is an “Arm’s Length” transaction and what does that mean?


I have had client come into my law office in Stuart, FL. and ask me what this means and how does it apply their transaction.

Quite simply an “Arm’s Length” transaction is a transaction between two unrelated/noninteractive parties.  That means there is no association between the parties which would otherwise affect the overall transaction.  Each party is acting independently with their own self-interests at heart.  Further, there is no undue pressure or duress placed on either party to behave differently.

Arm’s length transactions are important when it comes to determining fair market value for a product or service.  When a third-party is dependent upon the price reached for a product (i.e. the bank in a short sale), it is very important the transaction be free from any entanglement between the buyers and sellers.  This can include relatives, friendships, business associates, or other defined relationships.  The transactional goal is to reach an unadulterated price which is actually fair market value.

If you think you may have a problem with completing a transaction that should be otherwise “Arm’s Length,” then you most likely do have a problem.  It is easier to avoid this pitfall before getting involved than extracting yourself after the fact.

If you are looking for a Lawyer in Stuart, FL, Port St. Lucie FL, or Jupiter FL, familiar with contracts, short sales, and other transactions which may be subject to an “Arm’s Length” provision, please give my office a call.

Thank you for viewing my website and have a wonderful day.

Be Sociable, Share!