Equine Law: Avoiding Fraud in Horse Sales
Equine Law Practice Tips: How to Avoid Fraudulent Sales
As the purchase prices of horses continue to skyrocket, the industry standard for contractual protection lags, leaving ample space for sellers, trainers, and buyers to be victims of fraud. Horror stories swarm the rumor mill at shows and between farms, where buyers unwittingly paying thousands of dollars in commissions, horses are purchased with undisclosed injuries, beginner riders end up with super green project horses imported off a video from Europe, etc. According to a 2017 study by the Equine Exchange, 66% of horse sales involve fraud and 33% involve undisclosed commissions. Corrupt practices are unavoidable where so many high stakes purchases are completed without adequate legal protections. However, equine transactional law services put to paper necessary contractual protections for both sellers and buyers. Contractual protections provide necessary terms to be hashed out between a seller and a buyer prior to the horse ever getting on the trailer, this way both parties feel secure that their investment is being protected. Equine insurance, pre-purchase veterinary evaluations and travel terms are all useful components of an equine sales agreement.