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Discussion on Selling a Horse on Payments???
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Member:
Penner
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Posted on Thursday, Jan 8, 2004 - 11:13 am:
Hi All,
I have a horse that my neighbor likes & said he wanted to buy, but he would need to make payments.
I have never sold any horse on payments, only outright.
Background: Neighbor lives 2 doors down (in a rural area). He is a beginner/novice rider only ever ridden on trails. We have known of him, but really, met him at a neighbor's Xmas party 3 weeks ago & invited him to come ride in our arena & work some cattle with his present horse.
His present horse is tiny for him 14.3 HH TBred (& he is 6 ft 8 in tall!, & the horse is not familiar with cattle, so we let him ride one of ours thats 16 hands & fits him much better). He really likes the horse & wants to buy him, & has been riding our horse now 3-4x a week for 3 weeks. Since he is a beginner, we have also been giving him little informal riding lessons & teaching him how to work cattle, & teaching him how to rope (on the ground - not horseback).
Our neighbor is well known in our little community & is well liked.
He is not rich & wants to make payments. I was thinking of 3 payments over 3 months (I don't want to drag it out really, any further - as altho his is my neighbor, I don't know him real well & I don't want "bad blood" to even start, if it turns out he doesn't make the payments or he doesn't take care of the horse in the manner we have).
But, how would you all handle:
- a contract
- a "Bill of Sale"
- the shoeing (we do it every 6 weeks)
- vet bills (if any),
- feed?
- Would you let your horse off the property when it wasn't paid for completely? (to live 2 doors down with another horse too - in a turnout situation (that hopefully they will get along).
- If he defaults on a payment, how long would you let it go - before you'd have to take the horse back?
- What would you do if he defaulted on payments (keep what he already paid & take the horse back, OR refund the money & take the horse back)?
My husband wants to let him take the horse lock, stock & barrel not completely paid for & no contract spelling out care, feed etc.
Needless to say, I am a little concerned with the way my husband wants to do "business".
What would you do?
Thanks in advance for your help! 
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Member:
Steveb
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Posted on Thursday, Jan 8, 2004 - 12:59 pm:
Selling a horse on payments is OK -- as long as you have a WRITTEN contract. You don't have to make long or exotic, but contracts definitely go a long way towards avoiding misunderstandings by setting out the major parts of the agreement. As you describe the situation, you really wouldn't have to retain an attorney to draft the agreement, but you do need to have certain elements clearly stated: (1) who are the parties to the transaction, (2) describe clearly the horse (including registration number), (3) the full price, the amount of each installment, the exact due dates, where payment is to be made, how payment is to be made, when the buyer takes possession of the horse and/or registration papers, what happens if payment is not timely or properly made, (4) any warranties, if given, such as the health and condition or suitability of the horse, and (5) signatures by all parties.
The issues you are concerned about (vet bills, feeding, etc.) should all be discussed and included in the contract. Again, the form of the agreement isn't as important as is ensuring both parties understand exactly what the terms are.
If you need further help, one of the best Equine Attorneys is Julie Fershtman (her phone number is 248-851-4111).
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Member:
Dartanyn
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Posted on Thursday, Jan 8, 2004 - 4:27 pm:
This is just an additional idea that may keep the process simpler for both of you. You might agree to sell the horse to him only upon completion of the payments. In other words, your contract for sale would stipulate that the horse will transfer from your ownership to his when you have tendered the FULL amount of $???. Until then, obviously, vet, farrier, etc. would be yours because the horse is still yours. I guess I'd stipulate in the contract that the total amount of the purchase price would have to be received by such-and-such a date for this contract to be valid; otherwise a new negotiation (or none) would have to be formed. If this is the course you take, the contract would agree that all payments towards the horse would accrue without interest and be promptly refunded in full if either party decided to void it. Your idea of a short-term contract would certainly accomodate an agreement of this nature. You'd be making a provision by which he COULD buy the horse; but not neglecting the horse during the interim, and he'd have the opportunity to gain a horse that he's been able to sample (extensively it sounds) and knows is capable of the work he'd like to do. As an aside, you may want to make financial provision for yourself in the sales price if this greatly challenges your personal finances. Anyway, just a 2 cents worth. Dawn
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Member:
Sross
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Posted on Thursday, Jan 8, 2004 - 7:44 pm:
Just like buying something on layaway!
I like it!!
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Moderator:
DrO
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Posted on Friday, Jan 9, 2004 - 6:37 am:
Penner, I have to admit I am skeptical about this. So much can go wrong and your attempts to manage the horse from afar is pretty tough. They are either going to look at the horse every day or not.
I asked Janette (my wife handles all the business end of our buying and selling of horses) and she said she would never let the horse leave the farm till paid for and would insist on board while keeping the horse for the new horse. Also spelled out would be payment dates and specifc results of defaulted payments. Last she would have the buyer insure the horse for mortality with us as the benefactor.
But the red flag for me is: if they can't afford to buy the horse can they really afford to own a horse?
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Member:
Lhenning
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Posted on Friday, Jan 9, 2004 - 10:44 am:
I bought my horse in just this manner. The deal was, I paid board and made payments at the same time and my horse was kept at the sellers farm until paid in full. As a boarder, I was able to go and ride him but I was responsible for all his vet bills and hoof trimming. When the final registration papers were turned over to me the owner made the date of sale the original date I began the payments. But these papers were not signed and given to me until I had paid in full.
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Member:
Penner
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Posted on Monday, Jan 12, 2004 - 11:24 am:
Hi All,
Thanks for your replies. I think he could have afforded taking care of the horse as its really cheap to keep a horse on your own place out here (compared to back East. Really, can have 4 horses for the cost of upkeeping 1 back East).
But, I think we have let him "sample" the horse more than enough times as well, & its time for him to make a decision.
I also appreciate everyone's comments on that a contract is necessary & not to let the horse off the property until paid for. My hubby seems to need to see other people have the same ideas I do, before he believes me, (isn't marriage great -  )!
Thanks again!
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Member:
Canyon28
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Posted on Monday, Jan 12, 2004 - 5:25 pm:
I go one step further, I do not accept personal checks, but most of my horses go out of state. I keep the horse and retain ownership until all payments are finished, then I transfer the registration papers, etc. If they pay the horse off in a couple of months,I dont charge board or anything, but this is an individual thing. I never let the horse leave my farm unless paid for in full. Chris www.canyonrimranch.net
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