A Horse Bill of Sale is a legally binding document that outlines the transfer of ownership of a horse between the seller and the buyer.
It is also referred to as an equine bill of sale. Any if not all of the activities involved during the purchase or sale of a horse or pony should be written down in the Horse Bill of Sale. It is proof that the ownership of the horse has officially been transferred to a new owner.
A Horse Bill of Sale Contract may be identified by various names depending on your residence or where you receive legal services. Some of the names that may be used include:
- Equine Purchase Agreement
- Equine Contract of Sale
- Bill of Sale for Horse
- Horse Purchase Agreement
- Horse Bill of Sale Agreement
- Equine Sales Agreement.
Bill of Sale Requirements
The Horse Bill of Sale should show the relevant details of the transaction. It states the who, what, where, when, and how of the sale or purchase of a horse. This can be achieved by including the following information.
- The seller– The seller is the current owner of the horse who intends to sell the horse or pony. They should be identified by stating their name and other relevant information such as mailing address or contact information.
- The buyer– The buyer is the person buying the horse. They should be identified by providing their official name and any other important information like contact information.
- A description of the horse – The horse should be described in a detailed manner in the horse bill of sale. The description should outline the horse’s date of birth, sex, coat color (bay/chestnut/grey), registration number, breed, markings, or tattoos.
- Sire – Details of the horse’s father, including his registration number, should be provided. Knowing the horse’s pedigree helps the new owner with breeding.
- Dam – The Horse Bill of sale should outline the details of the horse’s mother, which include her registration number.
- Price – The bill of sale should show the price at which the horse was sold. The mode of payment should be given, including the method of payment disbursement, which can be a one-time payment or on installments. The day when registration papers are to be exchanged should also be stated.
- Warranties – The bill should declare if the horse was sold “as-is” or with guarantees.
- Date – The final date of sale should be outlined. This is the day when all the transactions will be completed, which includes final payment.
Filling a Bill of Sale Form
A horse bill of sale is meant to document what transpired during the transaction, and therefore, any information written in the document should be accurate and true. So as not to skip any important detail, the following steps should be followed when filing a horse bill of sale.
Date and parties
The section states the buyer and the seller. Therefore, this should be the first information to fill in. The date when the bill of sale was created should be indicated, outlining the date, month, and year. The buyer and seller should both be identified by their names and addresses. The address should declare the street, city, state, and zip code.
The second step should be to give a description of the horse being sold. This should be done by providing the following information;
- The name of the horse,
- Date of birth
- Registration number and any additional description detailing its health condition.
Purchase price information
Once the horse has been identified and described, the price at which the horse is being sold should be outlined. The exact figure should be given and the monetary unit used.
Additional things to be mentioned
Other than the already mentioned details, the horse bill of sale should include other relevant details about the transaction. For example;
- Breeding rights – It is not automatic that the rights to breed the horse are transferred once the horse is bought. If there is a need to limit this or grant permission, it should be addressed in the bill of sale.
- Commission – Sometimes, the buyer or seller can opt to use a third party such as an agent or trainer to search and negotiate the purchase of a horse. If this is the case, the bill of sale should declare how much the agent or trainer is being paid for the services. It is usually a fixed amount or a percentage of the total payment.
- Deposit – Sometimes, as a seller, one might require the buyer to pay a deposit as a gesture of good faith as they examine the horse. If this is the case, the bill of sale should state this and the conditions under which the seller should refund the deposit, for example, if the veterinarian diagnoses the animal to be in poor health.
- Registration papers – The ownership of a horse requires one to have registration papers. These papers should be transferred to the buyer as required. It should be ensured that the papers are those of the exact horse being sold.
- Veterinarian’s examination – If the buyer is allowed to carry out a pre-purchase vet examination from the local vet using a blood sample, it should be stated in the bill of sale.
The next item to fill out is the amount of security deposit that was agreed on. The amount should be clearly written in the applicable monetary units. If no security deposit was requested, then it does not have to be included. Any other important details such as terms of refund regarding the security deposit should be addressed at this point.
Once all the terms and conditions of the sale have been agreed on, the document should be signed by the seller and the buyer to be valid and legally binding. Each party should provide their signatures next to their official names and indicate the date when they signed the bill of sale.
Acknowledgement of notary public
This is the final step of validating the document. Once both parties have signed, they should present themselves with identification to a notary public for notarizing the document. Once the notary public has confirmed that the parties are who they say they are, they can sign the document and acknowledge having overseen the transaction. The notary public should indicate the state and county of jurisdiction, date of signing, their name, and signature. Once notarized, the Horse Bill of sale legally binds the seller and the buyer.
Here are free customizable templates to be downloaded:
Pre-Selling Things to Know
Before preparing a Horse Bill of Sale, it is important for sellers to know the different aspects of the purchase or sale of a horse that it is used to handle. This includes how the bill of sale is applied in such a transaction. To provide insight into this, we shall discuss a few things to note about a Horse Bill of Sale.
Importance of bill of sale form
The primary purpose of the Horse Bill of sale is to document the transfer of ownership of the horse in question. However, it protects the seller from any claims of refund, complaints, or any other disputes in the future, after the sale has been made. A horse can be sold “as-is,” or after an examination which is proof that the buyer accepted the horse or pony in the condition it was sold and has no legal right to ask their money back should the horse have any problems after being purchased.
Various parties may find a Horse Bill of sale very useful. Some of the different parties that may use a Bill of Sale for Horse may include:
- Individual sellers and purchasers, for instance, families, acquaintances, or friends.
- Organizations or groups, for example, horse dealers and auctions.
Whether you are professionally involved in the purchasing and selling ponies and horses, or you are interested in personal investment, a Horse Bill of Sale is a vital document. Consider having one if it is your first time buying or selling a horse, and you should also use one if this is something you do regularly. Usually, a Horse Bill of Sale may not necessarily need to be referenced, but they will prove very helpful if they are. The courts always use horse Bill of Sale contracts in resolving disputes that may arise between the parties involved; therefore, they should be completed with utmost care.
When is a bill of sale form needed?
A Horse Bill of sale should generally be used anytime a person intends to buy, sell or transfer ownership of a horse to another.
NOTE: In some states like Florida, California, and Kentucky, having a bill of sale is a requirement when selling, buying, or transferring ownership of a horse.
Steps for Selling a Horse
The process of selling of a horse is involves attracting potential buyers and preparing the horse to ensure it fetches a good price in the market. These steps include;
Get the horse ready
The first step when selling a horse is to make sure the horse looks its best for prospective buyers. This can be done through the following.
- Wash and clean it – Since normally selling a horse will involve the use of pictures, it is important to make sure its coat is clean before creating its ad. The right procedure for cleaning a horse should be used.
- Get it examined by a vet – Having a vet examine the horse is a way of reassuring potential buyers of the condition of the animal before selling. It also protects the buyer by ensuring that an unhealthy horse is sold unintentionally.
The next step is to create an advert for the horse and using the best platform for marketing the horse. The type of ad will depend on the method of advertising to be used. However, most if not all ads will have to use pictures. Clear and enticing pictures should be taken before posting the ad. Once a quality ad is created, the seller can advertise the horse either online or through posters/flyers, online being more preferred due to its reach. Contact information should be provided in the ad so that interested buyers can reach out.
Meet the potential customer
Once an interested buyer reaches out, a meeting should be scheduled so that the horse can be paraded to the buyer. Having the buyer have direct contact or interaction with the horse can go a long way in convincing them to make the purchase.
Negotiate the prices
The price of the horse will often be dependent on its age, height, intended job, training, performance record, and temperament. A horse with more desirable traits will fetch a higher price. However, the price should be negotiable, but sellers should have a minimum threshold beyond which they cannot sell. If a deposit is required, it should be stated. The deposit should be subtracted from the final payment.
Finalize the selling
Once all the terms and expectations of either party have been met, money can be exchanged, and the ownership of the horse is said to have been transferred. The transaction is completed as soon as the buyer takes possession of the horse, normally at an agreed date or the date of payment.
A Horse Bill of sale is meant to outline the activities that took place during the selling of a horse or pony. It is legally binding as long as it is signed. A Horse Bill of Sale should basically entail the following; the names of the buyer and seller, a description of the horse, the price of the horse, security deposit, and signatures. It is meant to safeguard the seller from any disputes that might arise in the future should the buyer change their mind. It is recommended that a horse bill of sale be notarized. Once signed, the bill of sale becomes proof of transfer of ownership.