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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, including the purchase price and signatures from both parties. Once finalized, it serves as a written record of ownership transfer. This video tutorial covers key aspects of horse bill of sale forms and how to obtain a free official template. Before creating the bill of sale, it emphasizes the importance of following proper steps when buying a horse, regardless of experience level. Essential steps include finding a seller, setting a budget (considering space, food, and care), and personally testing the horse through handling. Negotiation is also highlighted as a crucial part of the buying process.