Which statement best describes the purpose of a transfer tax declaration?

The purpose of a transfer tax declaration is primarily to disclose the purchase price of a property at the time of a transfer, facilitating the calculation of transfer taxes. This declaration provides essential information to the local government, ensuring that proper taxes are assessed based on the actual sale price. The amount of transfer tax due is often a percentage of the sale price, making accurate reporting critical for tax purposes.

In the context of real estate transactions, the transfer tax declaration serves as an official record that supports the taxation process and ensures compliance with local tax regulations. By requiring the purchase price to be disclosed, this declaration protects government interests and ensures transparency in property transactions.

Other options do not align with the primary function of a transfer tax declaration. Finalizing mortgage payment terms relates to financing arrangements rather than documenting ownership or tax responsibilities. Documenting ownership transfer is more accurately handled through a deed. Verifying property condition pertains to inspections and disclosures, which are separate from the purpose of a transfer tax declaration.