Final answer:
The Purchase agreement is the document that records the purchase price of a property in a purchase transaction. It is a legal contract signed between the buyer and seller that is crucial for transferring ownership. Comprehension of Escrow and the concept of a down payment is also valuable in understanding the home buying process.
Step-by-step explanation:
On a purchase transaction, the document that contains the purchase price for a property is the D) Purchase agreement. This legal document outlines the terms and conditions of the sale, including the agreed-upon price, and is signed by both the buyer and the seller. It serves as a binding contract that governs the transfer of ownership once all conditions are met.
Understanding the concept of Escrow is also crucial when purchasing a home. It involves a third party holding funds, including the deposit and eventual payment of home insurance and property taxes, which can simplify the payment process for the homeowner, as this is typically incorporated into the monthly mortgage payment.
When discussing mortgages, it is important to note that a down payment is commonly required. This demonstrates to the lender that you have a vested interest in the property and decreases the amount you need to borrow. As a rule of thumb, a 20% down payment is recommended. This financial step is instrumental in establishing the terms of your mortgage and the subsequent monthly payments expected.