Selling a horse – 3 mistakes sellers commonly make

Overwhelmingly, some of the most common litigation matters we see in the Equine space at Croy Legal are horse sale disputes. In almost every one of these matters, Sellers make some or all of these three mistakes, which could have been avoided with the right legal guidance early on.

1. Advertisement. The words included in your advertisement for the sale of the horse can have significant repercussions down the track. What you think may be the perfect ad, where your horse sounds wonderful and you have captured all of his best qualities and results, may be used against you down the track for using words that are up for interpretation, misleading or deemed to cause potential buyers to interpret the horse’s profile a certain way.

Common examples include:

• “capable of registration” – but you don’t actually have papers to enable registration.
• “unflappable, bombproof” – but the horse shied once a f few weeks ago.
• “Great kids pony” – as long as he is on a lead and the kid is confident.

This does not just apply to advertisement, but also communications with prospective Buyers when responding to enquiries. The safest approach to these discussions is to ensure full disclosure of any known or suspected issues or vices, regardless of whether you feel they are insignificant or no longer relevant.

2. Sale contract. The terms of your sale contract govern both how the sale will proceed but also give you an opportunity to have a Buyer to confirm in writing your representations and disclosures about the horse. Proceeding with the sale without a valid, enforceable contract can leave you exposed to disputes during the sale period, from the first enquiry to the horse being loaded onto the float to leave, and well into the future. A few important factors we include in all sale contracts are:-

• That the Seller has encouraged and enabled the Buyer to obtain vet and trainer advice in relation to the suitability of the horse.
• A clear outline of the Seller’s representation of the horse at the time of sale.
• Risk timing – when the horse becomes the Buyer’s responsibility – particularly important where there is a gap between the agreement to purchase, payment, and collection of the horse.

3. Evidence of sale. A receipt and confirmation that the sale is complete, along with supporting documentation. It can be very difficult to retrospectively get the other party to sign relevant documents to transfer ownership (highly relevant in cases where horses are registered). This can become an issue when attempting to transfer registration, or down the track if the Buyer wishes to sell the horse and needs proof of ownership.

Croy Legal offer assistance throughout the sale process to ensure a smooth transaction, where the completion of the sale is the completion of the matter, and not a complex and costly legal battle waiting to happen. Enquire with us to find out more about our sale packages – which include a review of your advertisement material, preparation of your sale contract and relevant proof of sale documentation.