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A horse bill of sale is a document that records the purchase of a horse between a buyer and a seller, detailing the purchase price and signatures of both parties. Once finalized, it confirms the transfer of ownership. The video provides important information about horse bill of sale forms and where to obtain a free template. It begins by emphasizing best practices for buying a horse, highlighting the responsibilities of ownership. Key steps include finding a suitable seller, setting a budget considering space and care, and testing the horse by handling it directly.