By Taylor Borst
Horses were one of our first means of transportation. Today, horses are a hobby for most owners or a lifestyle and source of income for breeders. In either scenario, having an accurate record of horse ownership is a vital legal concern for owners and potential buyers.
Most breed associations, such as the American Quarter Horse Association or the American Paint Horse Association, will provide each horse a Certificate of Registration when it is born. The initial owner is responsible for submitting all required information to the breed association, such as the horse’s date of birth, place of birth, and names of the sire (father) and dam (mother).
Whenever a horse is sold, the seller is responsible for providing the buyer with the Certificate of Registration. Most Certificates of Registration will have a section on the back page of the document for the buyer and seller to sign, reflecting the occurrence of the sale. This Certificate of Registration then can be amended by the breed association to reflect the change in ownership and name the buyer as the current owner.
To initiate this process, the buyer will submit the Certificate of Registration, signed by both parties, a transfer form, and a bill of sale. The transfer form is usually a breed specific form that can be obtained from the association’s website or office and will require the buyer to provide the horse’s name, registration number, date of sale, and seller’s name and contact information. There is typically a fee associated with processing the transfer and amending the Certificate of Registration to be paid to the breed association.
An attorney is often a valuable asset in this process by drafting a bill of sale, completing the transfer forms, and facilitating the transfer of information from the buyer to the breed association.
As the horse industry continues to experience economic growth and development, there have been more buyers and sellers seeking legal counsel in preparation of Purchase and Sale Agreements. A bill of sale satisfies the requirements of documenting the sale of the horse, but a Purchase and Sale Agreement outlines the terms and conditions of the sale and provides for greater protection for both parties.
Because the value of horses continues to rise, buyers often require sellers to disclose all pertinent information about the horse and its health records. Likewise, buyers are seeking to have terms that allow them contingencies based on the opportunity to try the horse, the results of blood work, and the performance of a pre-purchase exam by a licensed veterinarian.
The horse industry is quickly outgrowing the simplicity of a handshake and bill of sale, and industry professionals are continuing to see the benefits of having legal counsel to help guide these transactions.
Cantey Hanger attorneys are situated in the heart of horse country, in the great State of Texas. We are happy to assist horse enthusiasts as they navigate through these transactions and to be a part of the continued growth of the equine industry.