The moment has come—you’ve found the perfect horse, and you can’t wait to hitch him to your Christmas tree. The seller presents you with his “standard” Purchase Agreement, assures you all is well, and hands you a pen. Just sign on the line and the horse is all yours…simple as that.

Or is it?

In our previous article we looked at some basic issues when purchasing a horse. We briefly touched upon the all-important Purchase Agreement, but considering the weight that Agreement carries, it deserves a closer look.

As mentioned before, the purchase of a horse is basically a “buyer beware” transaction, meaning that it is up to you as the buyer to protect yourself should something go awry. When it comes to consumer purchases, many assume the law affords automatic protection if something goes wrong. While it’s true that consumers are given some measure of protection against fraud, these safeguards are not very far-reaching. For instance, for every consumer sales contract, there is an “implied warranty” that the item will be fit for the purpose for which it was intended. This, as you might imagine, is subject to very broad interpretation. For instance, if you buy a mare to ride, and she can be ridden, then under the law, she may be considered “fit for the intended purpose,” even if she bites, kicks, or doesn’t get along with the other horses in your barn, like the seller told she would. In addition, many standard consumer contracts contain language that waives any implied warranties. Simple language such as “sold as is” or “with all faults and defects” can serve to waive any implied warranty, leaving you stranded.

The best way to protect yourself when buying a horse is to make sure that all important aspects regarding the horse are included in the written agreement. Most “standard” Agreements can (and should) be modified to reflect the particulars of the sale. The more complex the sale, the more detailed the Purchase Agreement. So, if you are buying a horse for trail riding around your private property, the agreement will likely be less complex than if you were buying an expensive show horse. You should be very suspicious of any seller who refuses to modify the Agreement or insists that you don’t need key terms in writing.

So what, exactly, are those key terms which should be included in the Purchase Agreement? To start with, the names, addresses, and phone numbers of both the seller and the buyer should be included. If the horse is being sold on consignment or the seller is selling the horse on behalf of someone else, the actual owner should also be identified, along with an indication of whether a buyer would have recourse against the owner or the person selling should something go bad.

Of course, the horse should be identified by name and registration number (if registered), and registration papers should be attached to the Purchase Agreement. It is also wise to include a physical description of the horse, including any distinguishing markings or features. It’s a good idea to verify that the horse has a Coggins certificate, which should also be attached to the Purchase Agreement. If there is no Coggins certificate, you should ask for an explanation as to why.

The length of time the seller has owned (or been in possession of) the horse should be indicated, as well as how the seller originally obtained the animal (i.e. another individual, an auction, a breeder, etc.)

Every Purchase Agreement should have a section that covers the horse’s health history. In this section, there should be an indication as to whether the seller has kept up with routine vaccinations and veterinary exams. The seller should also indicate whether the horse has ever been treated for any medical conditions, including colic and lameness, or has had any medication other than routine vaccinations.

The Agreement should also indicate the Seller’s return policy, if any. For instance, can you rescind the sale if you change your mind, regardless of the reason and, if so, how long would you have to do that?

Aside from these basics, it is absolutely crucial that the Agreement contain a section detailing all representations particular to your purchase. These are items that are important to you as a buyer and constitute the meat and potatoes of the deal. Here you will include issues regarding training and temperament that are integral to your purchase. For instance, is/does the horse:

• Handle well in traffic
• Load easily into a trailer
• Have good stable manners
• Stand quietly for the farrier
• Accept a saddle, halter, and bit without difficulty
• Safe to be ridden by inexperienced rider
• Walk, trot, canter on cue
• Groom well
• Get along with other horses

These are just examples of some common concerns, and the list should be tailored to your individual needs. You should include any issues that relate to the specific purposes you are buying the horse for, i.e. competition, breeding, riding lessons, etc. This section requires the most thought by you as the buyer and relates back to my previous advice that you formulate a detailed list of questions before you even start shopping, based on what you are specifically looking for. Any verbal representations made to you by the seller are fair game for inclusion in the Purchase Agreement, and a seller shouldn’t balk, so long as they are true.

Finally, the language of the Agreement should also include clear indication that, upon payment in full, you as the buyer have sole legal ownership of the horse. You may thing this seems obvious, but there have been instances (as in the case of consignment sales) where the previous owner claims to still have an ownership interest in the horse (i.e. the horse wins a large prize in a competition, and the original owner claims a stake in the booty).

Remember, every purchase agreement is different, and the details of yours will depend on your particular circumstances. There are also different types of purchase agreements, such as pre-purchase contracts, installment agreements, and leases. These deserve further discussion…but for now, here’s wishing you and yours a very Happy Holiday!