What is an abnormal transaction ?
An abnormal transaction is a sale of a property that is unusual compared to what it could have been in normal circumstances. These types of transactions are market as abnormal transactions. In order words, it is assumed that errors were made during the sale of the property.
Example of an abnormal transaction
In real estate, a good example of an abnormal transaction can be a property that was sold at a much lower price than what it was listed for. If you visit online listing websites, you can see property records such as past sale prices. Sometimes, you will see properties that were market as abnormal transactions.
A property that was listed for $450,000 and sold for $450.00; will automatically show that there was probably a type in the transaction. For this reason, this property will be listed as an abnormal transaction.
Abnormal transactions can occur in many industries and sectors. For example, a bank can mark a transaction as an abnormal transaction if an agent made a mistake on the transaction.
