Though buying or selling a horse is often a private transaction, understanding the nature of equine law will go a long way in protecting your rights and financial assets. Even when making a purchase in cash, there are several legal issues to consider when buying or selling a horse in Kentucky. Here are some points you should know when planning a transaction.

Equine Law FAQ for Buying or Selling a Horse

What obligations does a seller have?

Sellers are legally obligated to disclose any information that could influence the value of the horse and the buyer’s purchase decision. This includes issues like a horse’s tendency to buck, spook, or bite, particularly if the horse has caused serious injury to a rider. Issues addressing the horse’s health, such as lameness and surgical procedures, should also be mentioned. To ensure these issues are addressed, a buyer should prepare a checklist of questions for the seller to answer and sign. Also, a veterinary exam is highly recommended.

What if the horse doesn’t meet expectations?

Buyers should perform their due diligence to avoid purchasing from fraudulent sellers, as horse sales are generally “as is.” However, if you can prove civil fraud — such as if the seller knowingly told you something that was untrue that affects the horse’s value — you may be able to seek legal recourse. Fraud, however, is difficult to prove, so due diligence is essential.

Do you need to disclose the sale?

Since 2006, horse sales in Kentucky must have an accompanying written bill of sale. This bill of sale must include the purchase price and both the buyer’s and seller’s signatures. However, this requirement does not apply when buying or selling show horses for under $10,000.

What if you can’t make a cash payment?

When you can’t buy a horse outright, you can make a purchase in installments. However, sellers have the right to protect themselves from financial risk by keeping the horse on their property and not releasing the registration papers until you have finished paying for the horse. These unique sales agreements should always be made in writing.

If you need the assistance of an experienced equine law attorney, please contact Gess Mattingly & Atchison P.S.C.  Since 1954, the firm has been representing clients throughout the Commonwealth of Kentucky, and has grown to become a full-service law firm with the ability to serve a diverse clientele in a variety of practice areas, including but not limited to: Administrative & Regulatory Law; Appellate Law; Arbitration & Mediation; Bankruptcy & Financial Restructuring; Business & Commercial Law; Civil Litigation; Commercial & Residential Real Estate; Construction Law; Criminal Defense & Expungements; Equine Law; Estate Planning, Litigation, and Probate Law; Family Law; Health Care Law; Insurance Law; Media & First Amendment Law; and State & Local Government Law. Call (859) 252-9000 to request a consultation, or visit the firm’s website (www.gmalaw.com) to learn more about the legal services the firm provides. This is an advertisement.