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A horse bill of sale is a document that records the purchase of a horse, detailing the purchase price and other relevant information, along with the signatures of both buyer and seller. Finalizing this document officially transfers ownership. The video discusses essential aspects of horse Bill of Sale forms and where to find a free official template. It emphasizes the importance of following best practices when buying a horse, regardless of experience level. Key steps include locating a suitable seller, determining a budget that includes ongoing care, and personally testing the horse before making a purchase. Negotiation is also a critical part of the buying process.