05 Mar Lease to Purchase Horse Agreement
The risk of loss section must be carefully analyzed. Consider what happens if the horse gets sick, injures itself or, worse, dies during the horse`s lease-purchase or installment purchase agreement. Any agreement must include language that addresses the possibility of injury or death of the horse, and possibly that the buyer is liable if, among other things, the horse is injured or dies while the horse is in the care, care and control of the potential buyer. This provision should specify that it is effective from the moment the horse leaves the seller`s property and continues until the horse returns. Depending on whether you need the potential buyer to purchase insurance, you should add the sentence that the potential buyer will cover all costs not covered by the seller`s mortality, major medical and loss of use insurance related to an accident, illness or any other danger, including the death or permanent disability of the horse. In addition, this driver/lessor/buyer is responsible for all costs/costs arising from his negligence. The benefits for the seller include receiving monthly payments for the horse and essentially having a fixed selling price for the horse. Review your jurisdiction`s specific requirements for Equine Activity Liability Acts (EALAs). For example, the buyer assumes the risks of equestrian activities in accordance with the law [of his state]. In addition, there may be compensation language – e.B. Buyer agrees to indemnify and hold Seller harmless from and against any and all claims, demands, liabilities, judgments or actions, etc., arising out of the use or handling of the horse by Buyer or any other person. Maybe the buyer would rent anyway and this way offers a reasonable option, if the horse is really “the horse”, then the money flows into the purchase. Remember that as a buyer, you want to be informed of problems so that you can make an informed decision about buying the horse.
Before deciding to enter into such an agreement, you need to consider the benefits and what can go wrong. Are you ready to look for the right horse for you? Head over to Equine.com, Equine Network`s first classifieds site, to look for the perfect horse! A contract for the purchase of a horse with instalment payments or a lease agreement on purchase may contain a clause according to which the buyer grants a security right in the horse to secure payment of the purchase price. The seller would take a security right to assert its rights against the guarantee (the horse) in the event that the debtor breached the obligation. For example, such a clause will protect the seller if the buyer has stopped making a payment, if the seller has had to repossess the horse, or if the horse has been injured, fallen ill or dies before the buyer has made a final payment. The agreement itself may constitute the security contract, and then a bid may be required in accordance with the Unified Commercial Code and the requirements of the jurisdiction. As a buyer, you need to pay attention to the following elements in a rental agreement: name, age, color and sex of the horse, as well as a good description. Get copies of all health exams, vaccinations, and records from the veterinarian. Have a veterinary exam done before you buy to test for lameness and other health problems.
A client recently came to see me after renting a Quarter Horse Annexe for her daughter. She asked me to draw up a rental agreement to buy horses. She was not financially able to buy the horse directly. And she hesitated a little about the “inflexibility” of horse ownership. One of the advantages for the buyer is that if he does not have the full amount ready for the purchase of the horse, a rental facility for purchase will speed up the path to the horse`s property. It also offers the buyer an extended trial period on the horse and gives the buyer a higher level of safety when the horse is purchased as it has been put to the test over a period of time. The buyer will likely have had the opportunity to evaluate the horse over a period of time, including the horse`s temperament in a variety of situations, as well as health and health issues. Finally, it gives flexibility to the buyer.
Consider language that reflects the types of warranties and representations that may be made under the agreement. For example, if the seller assures that the horse is in good condition, all health and vaccination records have been provided to the buyer, that a purchase contract will be made available to the buyer upon full receipt of the purchase price, and that the horse is sold “as is” without express or implied warranties. Pay attention to when these warranties come into effect, e.B. at the time of entry into force of the contract and transfer of ownership of the horse. She was about to sign another lease for the coming year, and after two years of successful leases, she decided that she really liked the horse and might want to buy the animal. Now that she thought there was a significant probability that she would eventually buy the horse, she wanted her monthly lease payments to be paid into the final purchase price of the horse. Horse people may have traditional ideas about how to do business, but don`t put yourself in a bad position if the other person turns out to be untrustworthy. Find out how to protect yourself when doing horse business.
Renting is sometimes easier than buying a horse because there is no long-term commitment to having to sell like the horse years later. In most cases, pre-purchase checks (PPE) are performed after a buyer has a purchase contract signed in hand. Otherwise, the seller could change their mind about selling the horse or sell the horse to another buyer after the buyer has invested time, money and energy in the PPE. A number of areas must be decided by both the buyer and the seller for the benefit of the horse and for the protection of both parties. The general care of the horse, e.B. who pays for food, food, farrier and veterinary fees must be decided in advance. If insurance is required until the last payment is made, who will bear it? During this time, the buyer will continue to make lease payments in accordance with the agreement of the parties, which may result in the total purchase price of the horse. If the buyer wants to buy the horse, he pays the purchase price minus the number of previous lease payments. If the buyer decides not to buy the horse, all rental payments made will remain the responsibility of the seller. She was about to sign another lease for the coming year, and after two years of successful leases, she decided she really loved the horse. So she decided to buy the animal.
Includes guidelines for the purchase of horses, including a model purchase contract. Legal forms of horse Equine.com Includes seller and buyer contracts, rental contracts and breeding contracts. Never declare that a horse is bombproof, that it will never turn around, or that it is ideal for children and that it is gentle. It`s a responsibility you don`t want. It is easier to say that the horse has no vices that you know, and that it has never behaved inappropriately since you owned it. That being said, reveal the vices or bad habits of the horse. While the above is not a complete list of what should be included in a lease agreement to purchase or purchase of installment horses, it does contain some of the issues. Before entering into this type of agreement, you need to consider six points. In the case of my client, the horse received a lot of training in the previous years of the lease and increased its mileage in the exhibition ring, which is mainly due to the tenant. As a result, the value of the horse has increased over time largely due to the hard work of the tenant. It is no coincidence that the selling price has also increased. In short, the buyer does not want to be in full rental or retrospectively in a situation and ask for the purchase price.
Fees and payment obligations are crucial in contracts for the purchase of horses. Be sure to accept and enter the exact purchase price of the horse in the rental agreement upon purchase. Many things can happen during a lease period, even the unknown, as is so often the case with horses. Five things that any lease agreement with an option to buy a horse must have are: (1) which horse is sold, (2) who is the seller and buyer, (3) for how much is it sold, (4) how payments are set up and when are they made, and (5) when does the buyer get the horse and when does the horse transfer ownership. Horses and people Photo of Photoeyes of Fotolia.com Once upon a time there was a handshake and a verbal agreement of everything that was needed between the buyer and the seller. Nowadays, written agreements are the norm in many sales. Horse sales are no exception. Renting a horse is not an easy process and should not be taken lightly. Since the horse still belongs to the seller until this final payment – or any other agreement – is made, the seller must ensure that the horse is cared for in accordance with its specifications. The buyer who rents the horse until final payment or any other agreement must understand this.
You can also specify a language in which the seller is not responsible for the potential buyer`s violations. B for example, compensation. In addition, there is usually a period of time during which the buyer must complete the PPE and perform a complete veterinary refurbishment. How does this work in a lease-to-purchase or equine installment purchase agreement? Some options: (a) Waiver of PPE; (b) compliance with the PPE before the date of entry into force or transfer of ownership; or (c) at a later date in accordance with the Agreement. Remember that as a buyer, you want to be informed of problems so that you can make an informed decision about buying the horse. Check local laws about buying and selling a horse. See if a brand inspection is needed and see what other health requirements are required. If a horse moves out of condition, check if it has undergone a Coggins test. To protect the interests of both the buyer and seller, hire a lawyer to review the agreement, as the attorney may suggest points to add that neither party has thought of. .