There is no question that my phone rings more over horse deals gone bad then any other equine matter and when it does, seventy percent of the time, the parties failed to obtain or execute a Purchase Agreement.  I’ve heard most every possible reason for this, and quite honestly, none of them are very good reasons.

I didn’t want to pay the money to hire an attorney.  A standard Purchase Agreement is not a great expense and if a problem does arise later on, it is likely the best insurance against the threat of a law suit or the expense of lengthy litigation that one could have.  A Purchase Agreement provides a road map and a set of rules so that in the event a controversy does arise, each party knows what their rights are and what their remedies are.

The Costs of a Purchase Agreement should be considered as one of the costs of doing business, just as one would a pre-purchase examination or the transfer fees of the horse’s registration papers, even if buying or selling a horse is only an occasional occurrence.  The question should not be “what can I afford to spend for a purchase agreement?”  The question should be “What can I afford to give back if a problem does arise?” or “Can I afford the retainer to hire an attorney to clean up the resulting mess?”

The Answer to these questions are unique to each individual and one which each must answer for themselves.  However, my clients don’t pay me to answer their questions with more questions.  They pay me for a straight forward answer to a straight forward question, so a good rule is this:

Any transaction for $5,000.00 or above should have a Purchase Agreement.  Clearly there are circumstances when even less money necessitates a Purchase Agreement, particularly when there are structured or delayed payments involved in the deal, but as a general rule, this is what I suggest.  If the average standard Purchase Agreement is $275.00, which is what I charge, then on a $5,000.00 purchase or sale, this is roughly 5% of the price of the horse and this is within the range of reasonable legal expenses.

There wasn’t enough time to have a Purchase Agreement drafted and I didn’t want to lose this deal.  Usually, time restraints are more hype than reality, but assuming this is true, then simply write down the major terms of the agreement and have each party sign; pay or accept a security deposit; and call your attorney first thing the next morning.  If you’re one of my clients, likely you have my cell number and can call me while you’re walking the horse back to its stall.  Two extra days now could save you two years of very expensive and emotionally exhaustive litigation later.


Every time I get an attorney involved, they just mess up the deal.  Although protecting their clients from a bad deal is part of the job of an attorney, complicating or jeopardizing a deal is generally not.  There are a number of attorneys out there that are very skilled at telling their clients that they cannot do something.  I see it as my job to determine how you can.

I have known or have been friends with this person for many years and I know that they would not cheat me. This is perhaps one of the most compelling reasons to have a Purchase Agreement.  I have seen many friendships and professional relationships come to ruin over a bad horse deal.  A Purchase Agreement spells out every possible issue and contingency, thereby keeping the parties safe by setting forth the rules to be followed.  It is those very deals, ones with the added elements of friendships and emotions, that cause the most heated and expansive controversies.  They are also the ones that present the most dangers.

I haven’t really relinquished ownership because I am still holding the registration papers.  This is perhaps the most common mistake of fact and law that even my most sophisticated clients will make.  A Certificate of Registration issued by a breed registry or organization is no more proof of legal ownership than were it written by your Grandmother.  Breed registries and associations issue registration papers for their own purposes, usually as verification of blood and parentage and for eligibility in recognized competitions.  They do not, however, carry any legal weight as to ownership of the horse.   There is a finite number of legal requirements that determine when ownership of a horse has passed.  The execution of a transfer form or delivery of the registration papers are not among them.

Having a thoroughly drafted and comprehensive Purchase Agreement is essential in almost every sale and purchase of a horse.  It can be an insurance policy that is worth every penny you spend on it.  It does not mean that a law suit won’t be threatened or instituted against you, but it does mean that, so long as it is enforceable, a Court will have a framework within which to view the evidence and consider the arguments.  It can also serve as a means to the early termination of a law suit before both parties are putting second mortgages on their homes just to pay us lawyers.


WHEN DO I NEED A PURCHASE AGREEMENT FOR BUYING OR SELLING A HORSE?