Selling horses is a tricky business. There are reasons why “horse dealer” has a poor connotation, namely that one selling a horse can be accused of sneaky methods and practices. The legislature in Florida took this reputation seriously and enacted very specific regulations regarding horse sales within its jurisdiction. The Florida Department of Agriculture and Consumer Services, Division of Marketing and Development created Florida Agriculture Code 5H-26.0001 (aka Rule 5H). The rule covers the sale of all horses in Florida, whereas other states only apply restrictions depending on the discipline or breed of horse being sold. Rule 5H requires a bill of sale to be produced by the seller. A bill of sale is in essence a receipt for the transaction. Rule 5H also requires specific information be disclosed in this bill of sale. The additional information that must be included in the bill of sale are:
- The name, address and signature of the buyer and the seller, or their authorized representative.
- The name of the horse and its sire and dam, if known.
- The breed and registry status of the horse, if known.
- The age of the horse, if known.
- The date of the sale.
- The purchase price.
- A written statement that the seller is the lawful owner of the horse and can legally convey title. This essentially means that the seller is in fact the owner of the horse and owns it free and clear of any liens. For example, if the seller represents that he/she owns the horse and in fact the proper owner is that individual’s parents, then the parents should be the ones signing the bill of sale and not the adult child. Also, if there is a lien on the horse for providing care, such as board, then the seller must pay off that lien before he/she can sell and sign the bill of sale.
- Written consent from the buyer that the buyer is consenting to a dual agent. This is only if the agent (usually the trainer) is representing both the buyer and the seller in the deal. If there is dual agency, the buyer must sign off on it, in writing.
- Written disclosure to the buyer of any commissions, consideration or other things paid by the seller to any agent. For example, if the seller is not just paying the trainer in cash but also throwing in another horse into the deal, or some other item of value, this must be disclosed in the transaction.
- Disclose to the buyer prior to the sale if the horse has been treated with specific veterinary treatment within seven days prior to the sale. These medical treatments include shockwave therapy or pulse-wave therapy, acupuncture, elctro-stimulation, internal blister or behind the knee injections of the use of any electrical or mechanical device designed or used to shock or prod the horse for the purpose of increasing speed (excepting the use of spurs, whips or other items regularly permitted by the governing breed association, federation, or other regulatory body).
- Accurate disclosure of the medical history when requested.
- The following statement: “As a person signing below on behalf of the purchaser, I understand that any warranties or representations from the Owner or the Owner’s agent that I am relying upon in acquiring this horse, including warranties or representations with respect to the horse’s age, medical condition, prior medical treatments, and the existence of any liens or encumbrances, should be stated in writing as part of this bill of sale.” This means that if the buyer is relying on any representations or warranties from the seller, those warranties must be included in the bill of sale, or should otherwise not be relied upon.
So aside from preparing (or better yet, getting an attorney to prepare) a bill of sale, what is the best practice for someone looking to sell an equine?
Disclose, disclose, disclose.
It is always a better practice to disclose medical treatment in writing, especially prior to the sale of a horse. Take for example the following real-life case which was decided in Florida. A horse was injected in March 2022 in the front feet, stifles, and hocks with steroids and hyaluronic acid. Thereafter, the same veterinarian was hired to perform the pre-purchase examination in April 2022. The conflict of interest was not disclosed and the sale was consummated. The seller and the veterinarian also failed to disclose the injections, with the seller only stating the horse had been injected around December 2021. After the sale, the horse went lame with a bone bruise and the buyer sued. The court denied summary proceedings and decided the suit could move forward because a jury would have to decide whether the injections performed in March would prevent the purchaser from discovering the bone bruise during the pre-purchase examination done in April. Coombs v. Mitchel No. 5:23-cv-70 (USDC Middle District of Florida)(9/6/24).
As knowledgeable equine attorneys, we are here to help trainers, owners, and riders with their next sale or purchase!
