When buying an OTTB, make sure you get a bill of sale
October 1, 2018
By SARA CAVANAGH
By PAT DALE
Owner of THREE PLAIN BAYS and successful OTTB trainer
When I started buying and selling horse all you ever got was the horses Jockey Club papers …IF the trainer had them, and occasionally a receipt for amount paid.
More often than not, just the lead shank with horse in your hand.
Fast forward to the 2000’s.
The Bill of Sale (BOS) serves both parties to prove new transfer of ownership, identify horse, and spell out many other often over looked facts.
The bill of sale is for BOTH Parties protection.
It is proof of ownership and payment; Jockey Club papers are not proof of ownership.
Check with the Jockey Club, they identify the horse for registration and racing or breeding purposes.
There is a whole host of rules regarding this easily found on line.
A good bill of sale will name the Seller who can be the current owner, or someone engaged as Agent for Selling owner.
The BOS should say if the seller is an agent who they are acting on behalf of and who the current legal owner of the horse is, the price agreed upon and paid, iIdentifying form of payment. either Check number or Cash or, if done by PayPal or Bank transfer, the accompanying transfer numbers.
When paying by PayPal frequently you will see a request for a “Friends and Family” payment since this avoids PayPal taking a percent.
Avoid this, use the “Goods” option and add back in the small percent taken by PayPal.
Protection that in a dispute you have recourse also Paying your PayPal with a Credit Card who may help with a dispute. (Do check with your CC for specifics.)
Rules for registering a Thoroughbred mare or stallion with Breed societies for approval require not only a Bill of sale but also the horse's parent registration original papers.
USEF/USEA require a bill of sale from last USEA/USEF owner who is listed with them when you go to have a horse transferred into your name.
So, if the person you bought the horse from did not compete this horse, you will need to contact whomever registered the horse and have them complete a transfer of ownership form.
Check with governing bodies.
If you are the register USEF/UEA owner having a pre-signed Transfer of Ownership form as well as copies of horses current Identification number saves everyone a lot of time.
A good BOS identifies horse by Both his Jockey Club name and any Registered Show names, be it USEA/USEF or T.I.P. ,his age, base color and even Tattoo if legible.
I like to include an Equibse print out of the horses past racing results and pedigree chart.
Include a line statement that covers whether or not buyer had an independent PrePurchase done and have buyer initial or check it off which is cover both for you and the buyer.
Listing disclosed vices or blemishes all parties were made aware of can help in case of a dispute.
Again, have the buyer initial or check these off. The Keep it simple stupid rule does not apply when selling horses.
Include the state where the purchase takes place.
So, if you like me live in Maryland but ship the horse out of state for a Pre Purchase veterinary examination, if the buyer concludes the sale after Pre Purchase and pays/takes possession of horse, then that state is where sale transpired.
Check with your states rules regarding livestock sales as Eevery state varies, and it helps to know, especially when a lot of sales are done via internet and wire, with horse shipping to a faraway state but the sale was concluded in your home state.
When I first set up business, I bought a horse from a Lawyer.
She sent me a BOS with this added to bottom. She was a Business attorney in state of Maryland. This has been my added to my B.O.S. and I have shared it with many other sellers.
“This bill of sale shall be governed by and construed in accordance with the laws of the state of Maryland. The items transferred hereunder shall for all purposes be treated as “goods” within the meaning of the Maryland’s uniform commercial code.
Seller makes no warranty of any kind as to the said described horse, expressed or implied, and further disclaims any and all warranties, expressed or implied, including warranties of merchantability and fitness, suitability or soundness for any particular purpose. Horse is sold “AS IS” and “WITH ALL FAULTS” and ownership, responsibility and risk of loss of horse passes to purchaser upon transfer of the above stated funds or signing of Bill of Sale (whether delivery of personal check, cash, or wire transfer, PayPal) regardless of whether Buyer takes physical possession of the horse on the date of the transfer of said funds.. Sale is considered Final and Complete upon signing and or transfer of funds, with payment amounts as agreed upon.
In witness whereof, the Seller/Agent has executed and delivered this bill of sale on this date”