| Q:
I'm in a tough situation. I'm 17 and I'm going to
be buying a horse soon. I had planned to do it a year from
now, after my first year of college and after I had
figured out a situation and saved some money. However I've
been informed that either I buy him now or he gets sold to
somebody else. As I'm very attached to him, I'm attempting
to buy him now. So, since I'm not quite prepared to take
him until next year, I'm looking for someone to lease him
out fully for this next year.
I've
never bought a horse before and I don't know the issues
involved. I'm wondering what kind of insurance I will need
(particularly for leasing him) and how to best limit my
liability should something happen to the lessee. I also
want to make sure he's going to be in the best situation
possible while I'm gone, so I can feel comfortable about
his well being. Basically I want to know, if you were in
my shoes, what things would you want to make sure were
taken care of, legally? Any help you can offer would be
greatly appreciated.
A:
To purchase the horse, you would want to follow the
steps outlined on the Equine
Legal Solutions website under "Buying a
Horse," particularly obtaining a vet check and
entering into a well-drafted purchase contract with the
seller. I'd ask your vet's advice about whether you
should obtain X-rays as part of your vet check, as you
wouldn't want to go to all the trouble of buying the horse
and leasing him out, only to find out that he has
navicular, ringbone or another chronic condition that
would make him unsound.
As
you're probably aware, there are significant risks
involved in leasing out a horse - see "Leasing a
Horse" on the Equine Legal Solutions website. To
help manage these risks, I'd recommend entering into a
well-written lease agreement that clearly outlines who is
responsible if anything happens to your horse, to the
lessee or to someone else or their property.
Because you will want the horse back in a year, you'll
want to make sure your agreement is crystal clear on when
you can take the horse back. Some horse owners find
that their lessee likes the horse so much that they
have trouble getting the horse back, while other
horse owners have lessees who change their mind
in the middle of the lease and want the owner to come and
pick up the horse on very short notice.
Screen potential
lessees carefully, and don't be afraid to ask a lot of
questions. After all, this is your baby that
you're leasing! What kind of experience do potential
lessees have? Do they have the financial means
to care for your horse properly? Can they offer
trainer and/or veterinarian references? What kind of
environment will your horse be living in? If
the horse won't be nearby, consider whether you'll be able
to check in on him personally every so often to make sure
he stays happy and in good condition. I highly
recommend having your lease agreement specify in detail
what kind of care you expect the lessee to provide
for your horse. Your lease should also specify that
you have the right to come and check on the horse (or
have a friend do so, if you can't) and that you can take
the horse back if he's not in good condition or the lessee
is breaching other terms of the lease regarding his care
and handling.
Many
leasing situations require that the horse be insured,
either by the seller or by the buyer. I not only
recommend insuring the horse, I also recommend
maintaining the insurance yourself, so that you can make
sure you have the appropriate coverage and make sure
it doesn't lapse during the lease term. You can
build the cost of the insurance into the lease cost.
In this situation, I would recommend obtaining an equine
mortality policy with coverage for major medical and loss
of use. You may also wish to consider obtaining
a horse owner's liability policy. For more
information on types of equine insurance and how to shop
for an equine insurance policy, see "Insurance"
on the Equine Legal Solutions website.
Best
of luck in buying the horse of your dreams and finding a
lessee who will care for him as much as you do!
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