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A horse bill of sale serves as a formal document outlining the purchase of a horse between a buyer and a seller, detailing the purchase price and signatures of both parties. Once finalized, it ensures the transfer of ownership is officially recorded. This video covers essential information about horse bill of sale forms and where to obtain a free official template. It emphasizes the importance of following best practices when purchasing a horse, which is a significant responsibility. Key steps include finding a suitable horse, setting a budget for all related expenses, personally testing the horse, and negotiating the sale.