A horse can be sold simply by a handshake, but it is better to have a contract for the buyer’s protection. In most of Europe, a verbal agreement is fully enforceable, a circumstance which might appear to be reassuring; yet in fact can cause difficulties when it comes to proving what actually was agreed, and therefore it is important to put all the details in writing, one having to be careful of any professional seller who is unwilling to do so.
A sales contract that is to be considered good must clearly state the name, microchip number, and passport number of the horse, in order to avoid any misunderstanding as to which animal is being sold. It should specify the price and the terms of payment. Most important of all, it needs to set out in writing the seller’s statements regarding the horse, for example its health history, any faults it may have, and whether it has been on medication. These written remarks are actually your best form of protection since a promise put in writing is far more reliable than one that you merely remember from a conversation. The contract should also tie the sale to a satisfactory veterinary examination, safeguard any deposit that is made, and, in the case of sales that involve more than one country, clearly indicate which country’s laws apply. Although this final point may appear unimportant, it is of great significance if a dispute eventually has to be settled in a foreign court, which is why it is advisable to decide on it while everyone is still on speaking terms.
You must also obtain all of the horse’s documentation when you become the owner, particularly in the case of international buyers since it is impossible to ship the horse without these documents. Although the equine passport is necessary, it should be remembered that it only serves to identify the horse and does not prove that you are the owner; ownership is demonstrated by the contract and the invoice. Be certain to get the passport, the breeding papers, the vetting report, the X-rays, and the correct invoice. Carefully check the invoice because the information in it will influence the taxes and the export paperwork later on.
Lastly, learn how to recognise the warning signs. Few bad purchases are the result of sophisticated scams, but rather stem from simple problems which a careful buyer could have prevented. You should be suspicious whenever you feel pressured or rushed, if the seller does not answer your questions, if the horse has already been warmed up by the time you get there, if the ownership is not clear, or if you’re asked to pay through channels that are not normal banking ones. The most serious warning sign is that the seller refuses an independent veterinary examination. In that case, you already know enough about the seller. Although there are always more horses available to buy, there is never any possibility of a refund.