You can hand write a simple bill of sale once you have been paid in full for a horse you have sold. In it's simplest form, it merely serves as a receipt or proof that the buyer paid for the horse and it transfers the horse's ownership. It describes the horse and many times includes an "as is" clause about the condition of the horse as well as no performance guarantees. If the horse sale was simple and the transaction has concluded -- that is, you received payment and the buyer has possession, or is arranging for possession, of the horse -- a bill of sale is all you need. In many cases, however, a sales agreement with detailed terms and conditions of the sale is used in equine transactions.
Horse registration papers, if applicable, are typically transferred with the bill of sale. Check your registering authority for rules regarding transfer of ownership to be sure you and the buyer are in compliance.
Basic Bill of Sale Components
Include the buyer's and seller's names and addresses, date of sale, purchase price and signatures of all sellers. For example, if you and your spouse co-owned the horse, you both should sign the bill of sale as sellers. Also include a description of the horse, including breed, age and any registration numbers. Identifying marks, such as brands or unusual coloring, are often included.
Include a description of the horse, as well as breed, age and any registration numbers.
For example: "In consideration of $3,000, including all taxes and fees, paid by check No. 1100, the receipt of which consideration is acknowledged, John Smith of 100 Easy St., Lexington, Kentucky, sells and delivers to Susan Jones of 200 Hardship Road of Lexington, Kentucky the following: A 2009 bay thoroughbred gelding, Jockey Club name "Good Horse," registration No. ABC123."
You can date the form at the top of the document or below your signature. State laws, breed and competition registries may require that a bill of sale be signed by both the buyer and seller. You may elect to include both buyer and seller signatures as a safeguard regardless.
Right to Sell and Free of Liens
It's a good idea to add wording that you were the legal owner of the horse you're selling and have a right to sell it, particularly if there are no other sales agreements associated with the sale. Such wording would look like this: "Seller warrants that he is the legal owner of this horse; that it is free from any liens and encumbrances; and that he has the right and authority to sell and transfer the horse."
"As Is" Clause and Warranties
Add that the horse is being sold "as is" and that you aren't making any guarantees that the horse will be able to perform in a specific discipline, or at any particular level in competition. For example: "The horse is being sold 'as is' and seller expressly disclaims all warranties whether expressed or denied, including but not limited to any implied warranty of fitness for a specific discipline or purpose."
It's also a good idea to add that the buyer had an opportunity to inspect the horse prior to purchasing him and agreed to accept him in his present condition.
Sales Agreement and Bill of Sale
It's common for a bill of sale to accompany a sales agreement that outlines in writing details verbalized by the seller and buyer. For example, if the buyer conducts a veterinary prepurchase exam or not; or makes a cash down payment with an agreement to pay the full price later. The more complex the transaction, the more detailed the agreement. If you sell horses regularly as a business, you should have an attorney draft a standard sales agreement for you and have him review it if details change for any transaction. The buyer and seller both need to sign the sales agreement.
It's a good idea to have an attorney review any sales agreement in an equine transaction, whether you're a seller or buyer.