Whenever making an expensive purchase, regardless of the size or type, we recommend you secure a medium of ownership transfer evidence. Not only is it required when applying for title transfer with your local state office, but it can also protect you from claims against ownership or liabilities following the transaction. It can be the cheapest (free) version of insurance you can buy.
Horses (Equines) can vary in value depending on the breed, ability, bloodline, and size from hundreds of dollars to thousands. Typically a receipt isn’t created during the purchase and sale of livestock or animals, however when the potential value is high, we recommend at least using a Horse Bill of Sale to protect yourself from unwarranted claims or liabilities.
Most states stipulate a minimum dollar amount ($500) at which a contract is necessary to validate the transaction. The lack of a bill of sale for transactions above this amount will then be at the discretion of judge or arbitrator to decide, and can take extended periods to resolve. Another reason why it is critical to secure a properly executed bill of sale at the time of the purchase or sale.
An effective bill of sale will include certain aspects in order to properly document the sale, and also protect the buyer and seller from future claims. They include a description of the equine being sold, the dollar amount of the transaction in both numeric and written form, conditions of the sale, and signatures of both parties.
Below is our preferred Horse Bill of Sale template which is designed for use in all states, and can be easily downloaded in PDF and Word (.doc) form for easy editing. Each sale is different so we always suggest you review the bill of sale with your attorney to ensure it meets the legal requirements of the state in which the sale occurs and properly protects your interest.
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