Among the advantages for the buyer is the fact that if he does not have the total amount ready for the purchase of the horse, a rental-to-buy facility accelerates the path to possession of the horse. It also offers the buyer an extended trial period on horseback, which gives the buyer a higher level of safety when the horse is purchased because it has passed its speeds over a long period of time. The buyer will probably have had the opportunity to evaluate the horse for a certain period of time, including the horse`s temperament in a variety of situations, as well as sound and health problems. Finally, it gives flexibility to the buyer. “Keep in mind that in some states, such as California, Kentucky and Florida (and perhaps more), there are specific laws on sellers` disclosure of horse transactions,” Fershtman says. “People in these countries need to be aware of these laws and meet their requirements.” A contract for the sale of equines with staggered payments or a lease-sale agreement may include a clause under which the buyer grants a security interest to the horse in order to guarantee payment of the purchase price. The seller would take a security interest to assert his rights against security (the horse) if the debtor does not respect the undertaking. For example, such a clause will act to protect the seller if the buyer has stopped paying, the seller needs to own the horse again, or the horse has been injured, sick, or dies before the buyer has a final payment. The agreement itself may constitute the security agreement and a bid may then be required in accordance with the single code of trade and jurisdictional requirements. Before entering into such an agreement, you must consider six points. While the list mentioned above is not an all-inclusive list of what should be included in a contract for the sale of lease-to-purchase or staggered payment equines, it does contain some of the problems. Consider a language that reflects what, if any, guarantees and explanations are made in relation to the agreement.
For example, if the seller claims that the horse is in good condition, the buyer has been provided with all health and vaccination documents only as soon as the purchase price is fully obtained a purchase is made available to the buyer, and if the horse is sold “as seen” without guarantees, neither express nor tacit. Be aware of the effective date of these guarantees, for example. B on the effective date of the agreement and the transfer of possession of the horse. Once upon a time there was a handshake and a verbal agreement that were needed between the buyer and the seller. Today, written agreements are the norm in many sales. Horse sales are no exception. Owning 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 another agreement – the seller must ensure that the horse is processed according to his instructions. The buyer who rents the horse until the final payment – or another agreement must understand it.
“Actually, that $5,000 is the one that makes me get a lot of phone calls,” says horse lawyer Julie Fershtman, JD, who lives in Southfield, Michigan. During this period, the buyer will continue to pay rents according to the parties` contract that could be in line with the total purchase price of the horse. If the buyer wants to buy the horse, the buyer pays the purchase price, which is reduced by the number of rents reduced so far. If the buyer decides not to buy the horse, all rental payments remain with the seller. But the trip to court and the associated costs could have been completely avoided, Inge points out, if the original agreement had been reached in writing. Most people expect to sign a written contract if they buy a car, buy a house or rent an apartment.