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A horse bill of sale is a document that formalizes the purchase of a horse between a buyer and a seller, recording the purchase price, relevant details, and the signatures of both parties. This written transfer of ownership is crucial once the sale is finalized. The video outlines essential information about horse bill of sale forms and where to find a free official template. Before creating a bill of sale, it emphasizes the importance of best practices in horse purchasing. Buyers should locate a suitable seller, determine their budget considering space and care, test the horse through handling, and negotiate the terms of sale.