Dictionary of Insurance Terms: purchase price
purchase price
cost of an annuity Annuities are often paid for in a lump sum rather than annual or other periodic payments. This sum, which guarantees an income, usually for life, is called the purchase price rather than the premium, which is generally associated with payments for insurance.
Dictionary of Real Estate Terms: purchase price
purchase price
the dollar amount paid for a property. The amount stated in the sales contract, unadjusted for financing, concessions, or seller-paid closing costs.
Example: Sally bought a home for $200,000. The seller paid most of the closing costs, and she was given $5,000 because the furnace needed replacing. The purchase price, however, was $200,000.
