One should consider using a horse bill of sale anytime they are planning to purchase, sell or transfer ownership of a horse.
A horse bill of sale, also referred to as an “equine,” is a legal document that outlines the details of a transaction between two parties concerning the sale/purchase and, therefore, the change of ownership of a horse.
Other than the buying or selling of a horse, the horse bill of sale can also be used when gifting someone a horse, in which case, the bill of sale is used to document the change of ownership for tax and legal purposes.
Horse Bill of Sale- An Overview
The horse bill of sale is one of the most commonly used, most authentic proof of a sale/purchase and subsequent change of ownership of a horse. In some states like Kentucky, Florida and California, one is legally required to use a horse bill of sale whenever they are selling, purchasing or transferring the ownership of the horse.
When properly executed, the horse bill of sale can help forestall the possibility of any disputes that may arise over the change of ownership of a horse. Nevertheless, should a dispute arise or should there be any legal concerns over the sale/purchase of the horse, or if the buyer attempts to get their money back after the transaction is complete, the bill of sale can help quickly clarify such disparities.
Additionally, since the bill of sale sets clear the horse’s welfare, the buyer is assured of its health and pedigree- i.e., the horse is sold “as is,” so if there are any issues after the sale is complete,it will be the buyer’s responsibility. Simply put, the horse bill of sale helps guarantee the buyer that the horse they are purchasing is free from any crippling or debilitating disease.
How to Write the Form
When buying, selling, or transferring the ownership of a horse, it is important to use a horse bill of sale as, without one, there is no way to prove that the horse’s ownership has been changed legally. In some states, a horse bill of sale is legally required when selling, purchasing, or transferring the ownership of a horse.
When preparing a horse bill of sale; the following key elements should be taken into consideration:
- Who: who is purchasing the horse
- What: what is the horse’s purchase price- important for future tax purposes
- Where: Where the horse was registered as well as its registration number
- When: when the horse is being purchased
- How: how the horse is being sold, i.e., “as is” or sold with warranties and no conditions.
Once the above elements have been laid out, it’s now time to prepare the horse bill of sale.
Below are steps on how to properly craft one:
Date of the agreement
Enter the exact date of the execution of the agreement. The date is important as it provides a timeline for when the transaction was done.
Enter the personal details of the buyer and seller as:
- Buyer’s details- Include the buyer’s name as is in their identification card and their official address. Make sure that the name is correctly spelt and the address provided is valid.
- Seller’s details- Include the seller’s name, contact number and address.
NOTE: Make sure to provide your name as is on the identification card and provide a valid address.
Enter the horse’s name, age, coat color, breed, sex, size, registration number, and any other distinguishing feature, if any, such as tattoos on the horse.
Under the registration number, provide the following:
- Sire: details about the horse’s father and his registration number
- Dam: details about the horse’s mother and her registration number
State whether the buyer, before purchasing the horse, can get a veterinary exam with a blood sample from a local vet, particularly if the horse is being sold “as is”
Include in the horse bill of sale whether the rights to breed the horse have also been transferred to the buyer upon completion of the transaction.
Purchase price information
State the purchase price and how the horse will be paid, whether partially, in full, or in instalments (state the exact amount to be paid in each instalment). Also, indicate the intention of the buyer with regard to a health checkas well as if a health examination has been requested and the final date of the checkup.
Indicate whether the seller and/or the buyer will pay a trainer/agent or any third party a specific amount or percentage of the total purchase price for help with brokering the deal.
Enter the exact amount being paid as a deposit followed by the date of such payment and the actual balance to be paid, followed by the date on which the amount is to be paid
If the buyer is required to pay a security deposit, enter the agreed amount of the deposit;otherwise, if they will be paying the full purchase amount, there is no need to include the security deposit section.
Mention the warranties given to the seller, including the number of days after the horse has been delivered within which the buyer must discover any variance negating the warranty provided by the seller to be able to seek redress.
Provide a detailed explanation on what the seller would do to redress any situation negating the warranty they have given if any variance is discovered within the number of days indicated in the agreement. Also, state the laws that will govern the agreement
Include the signatures of the parties involved. The agreement should be signed in the presence of at least two witnesses. Make sure to provide the seller’s signature and print name as well as those of the buyer and the two witnesses overseeing the transaction.
Indicate when the official registration papers will be transferred to the buyer- normally after the full purchase price has been paid- and ensure that the horse’s description and registered owner match the document.
Acknowledgement of notary public
For the document to be considered valid and legally binding, it should be acknowledged by a notary public. The notary public will provide the required information and acknowledge the document and the transaction.
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Frequently Asked Questions (FAQs)
Does a horse bill of sale prove ownership?
Yes. A horse bill of sale proves ownership. The horse bill of sale shows that the horse’s ownership has been transferred from one party to another.
How do you write the bill of sale for a horse?
When writing the horse bill of sale, include; the seller and buyer’s name and address, a description of the horse being sold, the purchase price, the deposit paid, if any, warranties, the payment terms, and signatures from all the parties involved.
Do you need the bill of sale for a horse?
Yes, you need the bill of sale for a horse. As the seller, the horse bill of sale protects you should there arise any issues with the horse after the transaction has been completed. With the horse bill of sale, the horse is sold “as-is,” so any problem that occurs thereafter is the buyer’s responsibility. Similarly, the bill of sale also protects the buyer in the event that the seller attempts to reclaim the horse since the bill of sale will help prove that the ownership had been transferred.
Is a horse bill of sale a legally binding document?
Yes, a horse bill of sale is a legally binding document. Once the horse bill of sale is signed by both parties in the presence of two witnesses, it becomes legally binding and protects both the buyer and seller in case either party decides to change their mind or in the event of a dispute regarding the sale/purchase.