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A horse bill of sale is a legal document that formalizes the purchase agreement between a buyer and a seller, detailing the purchase price and necessary information along with both parties’ signatures. Once completed, it signifies the transfer of ownership. The video covers important information on horse Bill of Sale forms and where to find free official templates. Before creating the Bill of Sale, it discusses the best practices for buying a horse, emphasizing the significant responsibilities involved in horse ownership. Key steps include finding a seller with a suitable horse, identifying your budget while considering care costs, personally testing the horse, and negotiating the terms.