Have you ever heard of an “Non-Arm’s Length Transaction” in real estate? In most real estate transactions, a buyer and seller work the best deal they can for themselves. However, sometimes one of the parties has more power than the other, such as an employer selling to an employee, or a family member to family member. When this happens, the lender may have rules. If this sounds like your situation, let’s talk first!
Related Article Title: Family Status and Non-Arm’s Length Transactions Question: Is a first cousin selling to their first cousin considered a non-arm’s length transaction? Answer: Yes, that would be a reasonable conclusion. The familial relationship is not always the sole indicator of a non-arm’s-length transaction as it could be between an employer/employee (think builder situation) […]