Caveat Emptor: (Let the Buyer Beware)

It is a sad truth, but we horse professionals tend to offer lots of advice about how to deal with horses, but we seldom offer candid information about protecting yourself from other people in the horse business. Another sad truth is that the best and worst people in the world are in the horse business. They will either give you the shirt off of their backs, or are figuring a way to steal yours while smiling at you. This topic is on my mind as I just got off of the phone with an Assistant District Attorney gathering information to file a lawsuit and deciding whether or not to press criminal charges against someone.  So, as someone who has been in the horse biz my entire adult life, as both a buyer and a seller, I am offering this marginal advice on protecting yourself from the Predators in the Horse World. I am a horse trainer, not a lawyer, so take this advice for what it is, but I did watch a lot of Matlock and Perry Mason as a kid so…

Get it in writing. I know it’s a cliché, but the deal I am now embroiled in is over the paperwork that I should have received 15 months ago, and now, am having to sue to get. Don’t wait until next week. Get it in writing today, prior to money or property changing hands, even if that property has a heartbeat. There are lots of free contracts, Bills of Sale, and Lease Agreements, etc. available on the internet. It’s not hard to free-wheel it and draw up your own contract in plain speak. So long as everyone signs, it is a legal and binding contract. Getting it Notarized sure wouldn’t hurt either. I would, however, certainly advise the use of a lawyer for larger transactions or partnerships of any kind.

Outline what each party expects and agrees to and any stipulations or claims that are outstanding. If the seller expects first right of refusal if the horse is ever resold, that agreement should be stated in writing. If the horse is known to be 23 and have a mild case of Navicular, that fact should be stated in writing.

My current situation involves a horse that I traded for and have put over a year of time, money, etc. into; all the while thinking he was a grade horse. A couple of months ago, I find out that the horse has papers and there is a signed transfer giving ownership to someone else. This someone else has already proven to be untrustworthy, and has not signed the horse over to me despite having been made aware of the situation. The person I made the deal with was aware of this paperwork, is business partners and friends with the person whose name is on the paperwork, and did not disclose this detail to me for over a year. I now have a major problem and over $12,000 invested in a horse that I’ll have to go to court to have transferred into my name. All of these dealings were with someone I thought was trustworthy, thus I was fine with verbal agreements. Trust me! Get it all in writing.

I know another lady that sold a horse to a family she knew well. The horse was older and a hard keeper, but a perfect fit for that family’s special needs child. She sold the horse, but had a clause in the Bill of Sale about the conditions that the animal needed to be kept in. She went to visit a few months later to find her gentle old gelding had lost 300 lbs. Her Sale Contract allowed her to retake possession of the horse.

People get laid off. Divorces occur. Things change. Expect the unexpected. Take LIFE into account when buying and selling.

Make use of Permanent Identification Markers in the Bill of Sale. Again, it sounds simple and unnecessary, but I have personally witnessed papered horses that were purchased and shown in futurities be DQ’d when their mouth disagreed with the age according to the papers. It is an unfortunate fact that registration paper’s descriptions are vague. Sorrel geldings with two white socks are common. If someone has a nicely bred 9 year old die and a plug of an 18 year old that basically matches the description, the now deceased 9 year old’s papers will add value to the 18 year old plug. Do you see where I’m going here? This happens more often than you’d think. Branding and micro-chipping horses are great ways to prevent theft and make permanent identification easier. Make use of them and include those markers on any paperwork involving that animal.

Transfer the horse. Again, it sounds too simple, but you’d be amazed how many people currently “own” a horse that they bought, got a signed transfer for, but they have never actually sent in the transfer and had the horse officially transferred into their name. If you happen to lose that original transfer years later and try to sell the horse, good luck getting an owner from 7 years ago who long ago spent that money, may have moved, and has since gotten divorced, to sign another one. Send it in and get it all over with now. Keep all of the paperwork in a safe place forever!

Take pictures/videos. Whether you are a buyer or a seller, document the condition and soundness of the animal/trailer/tack at the time of sale. As a trainer, I video each horse as it comes in and leaves and this has definitely played in my favor on multiple occasions. There are people who will bring you a horse that is a body condition score 3.5 and complain when you send a body condition score 4.5 back home 45 days later. Pictures and videos do not lie. People most certainly do!

Be smart about conditions or contingencies for a cancelled sale. I once lost a sale on a horse when I was an apprenticing trainer. This horse was worth about what I made in a year. The buyer picked up my horse on a Friday, wrote me the check, and was going to get him Vet checked on Monday morning. I had the check. I knew the horse was sound. My nest egg for my future was set. Life was good! I get a call Monday that the horse failed the Vet Check. This horse had never been unsound. It turns out that the man had his farrier out over the weekend and had the horse reshod. A hot nail blew my sale and the Vet Check. We pulled the shoes on Tuesday and the horse was immediately sound again. Make darn sure that the horse cannot be altered in any way prior to a vet check and that horses are guaranteed sound at the time of sale, but not in perpetuity. Lots can happen in a day or two. I generally don’t like to have the horse leave the property or my care until sold. Some people will want a 30 day trial. All of this and contingencies need to be outlined, in writing, prior to the horse moving off property in my opinion.

What constitutes a sale?  I don’t mean a handshake or verbal agreement. I mean paperwork signed, stipulations met, and money has changed hands. Only then is the animal “sold”.  I cannot tell you how many verbal and handshake “sales” I have seen fall apart over the years. Some people make it a point to agree to buy all of the animals that they are interested in while shopping so that the seller quits trying to sell the horse and they selfishly tie up 12 horses while they decide. If you are selling a horse, it is not sold until all details are finalized. Be up front with any potential buyer on this fact. As a buyer, understand the seller’s point of view. If you are an earnest buyer, offer a deposit until further conditions, like a vet check, can take place. This lets the seller know you aren’t just wasting their time, as you have something to lose by changing your mind.

Get experienced horsemen to consult if you are new.  Many sellers are themselves, inexperienced. This means their evaluation of that “kid safe” horse may be virtually useless. There are also unscrupulous sellers who will pass off something fairly dangerous as a kid’s horse, or one that they know has foundered as a performance prospect. It is well worth paying a trusted trainer $50 to check out a horse for you or paying the standard 10% commission for them to find you the right horse. A few decades in this business will definitely help you to sort out the “bad idea” horses at a glance, thus saving heartache, ER visits, and money.

Try the horse multiple times. This is important to me as a seller also. People tend to overestimate their skills and abilities. Quite a few times I have refused to let people ride a horse that sounded like a good fit on the phone because after seeing them handle the horse on the ground, I knew they did not know enough to be safe on this particular horse. It is better to break a heart than a leg. Lots of people get along well on a first date only to find out after a few dates that this is not what they were looking for. Also, horses are not dummies. It is not that uncommon for new horse owners to buy a horse that rides and handles very well at the time of sale and 3-4 weeks later they are having all sorts of problems with the formerly “perfect” horse. That horse has spent every minute with you evaluating what he can get away with from the newbie. Horses are trainable, but you need experience to be aware of what “training” they are getting. There’s a great saying about new horse owners with a $35,000 budget needing a $1,000 horse and $34,000 worth of lessons.

Check out the Salesman. I am not a car guy, but I read body language pretty well. So, I may not be able to look at a car and tell if the transmission is about to go, but I can ask the salesman and tell if he’s lying to me. Ask around. Every profession out there has its cream, the top 10% that make it so easy. There’s always a competent middle group that may not be the best, but they are good enough. And there’s the lower third that really should be out of business.

In my current local area, and every area I have ever lived in, there’s been a horse trader/trainer/farrier around that just won’t do things right. They lie, misrepresent, and have no concern for anyone else’s wellbeing or safety/happiness if they can make a buck. These people are known. In fact I am constantly shocked that certain pros can actually continue to find new victims. Those soon to be wiser victims simply aren’t asking around. Due Diligence!

Ask other horse people about so and so. I will say here that you are looking for a pattern of behavior. Everyone has someone out there that doesn’t like them. No business has 100% 5 star reviews. If you hear 9 great comments and one whiner about someone, then they are probably just human and there’s likely no cause for concern. If you keep hearing about so and so having peddled off a different lame horse to someone from 5 different people or horses being mistreated, etc. then you need to walk away. Trust me, the whole story in the horse business is about as common as that sound, sane, beautiful, buckskin, 15 hand, 1250 lb., show winning, kid’s horse for $500.00…

Get a Veterinarian Check/Soundness Exam. A vet check may well cost you a few hundred dollars, but may also be the best money you spend. I will say here that we are just looking for the truth. There is definitely a case to be made for buying a child a horse that is well past their prime and is no longer100% sound, but is still “sound enough” for light work. You just want to know the horse’s current physical standing and the prognosis if there are any concerns. As long as that prognosis is known and within the realm of reason for your needs, a horse that may require special shoeing, care, meds etc. may well be the perfect horse for you if those special requirements are within your means. Just know ahead of time so you can make an informed decision.

I believe in asking their vet about the horse, but if at all possible, I want another, known to be competent Vet, preferably mine, to do the Exam.

Certainly, this is the type of article that could go on and on trying to cover every eventuality. I will wrap it up here and hope that the tips given will cover most of us. Do remember that you are making a decision and one that involves living beings. As such, make these decisions with your head. Emotions are important, but not so much for clear thinking and evaluating. Best of Luck and Caveat Emptor!