What is your plan for the horse you are giving away because it’s too much for you, or you no longer have time to ride?
And for the rider who has been given a free horse and can’t believe their luck. How are you going to prove you are the legal owner? Why you should care about horse agreements for a free horse?
Bad things can and do happen, even when intentions seem good at the start. You need to be able to prove to the best of your ability that you do (or do not) own the horse. People can change their minds when arrangements are not formalised. So, being clear about who owns the horse is important.
Misapprehensions don’t always turn into total disasters. But you want to be sure that if you are giving a horse away, that it is a permanent arrangement. If you have been given a horse, you need assurance that all the $$$ and effort you spend on it will not be wasted because the ‘owner’ turns up and takes it away. People say - does this sort of thing really happen? Absolutely it does. My perspective is – why expose yourself to that sort of risk and hassle and uncertainty? My story.
I was grazing manager at our Pony Club facility. A young woman brought her pony onto the grazing and all was well and good for a time. As grazing manager, it was not my role to query the grazers on whether they owned the horse or leased it. My understanding was that she was leasing the pony for a couple of years until the owner’s grandchild was old enough to ride it. Fair enough, I thought. Not an uncommon story.
But she gradually lost interest and the horse left the grazing. I found out that it had gone to another young woman in the next town. Sadly, the same thing happened. That young woman lost interest too – or did she just see an opportunity to make some money out of this horse she had ‘taken on’? Before I knew it, questions were being asked about the horse and what we knew of its whereabouts. It had turned up in yet another Taranaki town and was doing quite well at the A&P Show. As happens in the horse world, news spread. The original Taranaki owner found out the horse she had loaned had then been loaned on again and finally sold for a good price to a third person. And there was not a shred of useful evidence about the original free lease arrangement, or about the ‘give away’ deal between the first and second young women. I am not sure about the nature of the deal between the second woman and the eventual ‘purchaser’ but I am confident the person who parted with good money to buy the pony genuinely believed she was becoming the true legal owner. What happens if someone sells a horse they don’t own?
What happens between two people who both claim they own the same horse? How does the legal system sort out that type of problem?
The general rule is that sellers cannot give ‘better title’ (let’s call that ‘ownership rights’) than they themselves have. So, if B sells a horse to C, when in fact A is the true owner, the general position is that the contract between B and C cannot deprive A of the property, or ‘title’, A has in the horse. There will still be a contract between B and C, but since B does not have the right to sell the horse, C may sue B for breach of the implied condition that B is entitled to sell. C may get her $ back from B – possibly. And A gets the horse back. Probably. But that may take a lot of time and anguish, plus proceedings in the Disputes Tribunal to sort out. Owning it – but is it really your horse?
Whether you are selling, or giving away, or receiving a free horse – the problems are the same. Until you address the ‘ownership’ issue, you haven’t laid a strong foundation for a clear and long-lasting arrangement.
Even worse, you have potentially exposed your horse to a harrowing future, being passed from person to person with no-one really looking out for her best interests. Equally distressing is when a horse you had given away is unexpectedly returned to you – it may be in bad condition, or you have no room for it. Or the SPCA contacts you to say you are the registered owner of a horse reported to be neglected and abused. I am sorry to say the stories are sad but true. Fun Fact: Equestrian Sport NZ registration is not proof of ownership, just as vehicle registration with the NZ Transport Agency is not necessarily proof you own the car. But it’s where a horse welfare investigation might start. So how can you transition from a hand-shake (or shall I say a ‘shaky’) arrangement to one which goes the best possible way to proving who exactly owns or leases your horse? My blueprint for successful horse agreements.
When I speak with equestrians, I take them through some of the stories I have been told as an equine lawyer. Often these unpleasant and awkward disputes are not widely spoken of because both sides are embarrassed they weren’t better organised to begin with. But most people tell their ‘warts and all’ tale to their lawyer in the desperate hope that they will come out okay.
My blueprint takes you from the murky waters into which people throw their versions of ‘who said what to who’, to a place where there is clarity and certainty. The following three steps will guide you in the ‘ownership’ process: Decide your deal If you are offered a horse for free, you need to work out exactly what you are taking on. Do you have an option to return it? Does the owner expect it back? If you were to on-sell it later, would there be bad feeling between you? If this is woolly, then ask more questions. If you can’t return the horse, you need to be sure you have long-term grazing and the $ to pay for the horse’s care. If you decide to give away your horse permanently, the same applies. This can be a good option for the horse that you don’t have time for anymore. Or it might be that you are retiring the horse? Or it may be that there are some known problems with it and the person you are giving it to is prepared to take those problems on. Just don’t leave a hint that at some stage you may want the horse back. That could land you with a horse on your doorstep without warning or time to prepare. Prepare your paperwork The beauty of an agreement in writing is that it galvanises both parties to have those deeper conversations. Front-foot the negotiations and ask the other person for their email address. Then go onto my website and purchase an Agreement at https://www.horseagreements.co.nz/horseagreements.html Choose the one that suits your situation – most likely the ‘Simple’ agreement if you are giving the horse away. It will cost you the same as buying a horse rug, but it means you avoid a whole lot of problems in the future. You will find that having this precise agreement crafted by an equine lawyer will pave the way for a good relationship with the other party – be it the person giving the horse away, or leasing the horse, or buying the horse – even for $1.00 ! Sign your signature You will be empowered by doing an interview online as the first step in creating your own agreement. It’s the latest in accessible, tech-savvy law and easy to do. Read my reviews. Once you have answered the automated questions, all the necessary details will automatically populate a Word document which will arrive seconds later by email. Then you can sign it, scan it and send to the other party. Don’t forget this last step. Make sure you receive their signature back on the agreement. That means the terms are clear and agreed! Simplify Horse Ownership
The $1.00 amount is a valuable ‘token’ which proves new ownership of the ‘give-away’ or ‘free horse’. That small amount of money changes everything. I encourage equestrians to follow the same process they follow when buying a house, car or a refrigerator.
Investing what you will spend on a horse rug into a settled future for you and your horse is what I call a ‘no-brainer’. Please like my Facebook page www.facebook.com/fairPlayHorseAgreements for more info on how to do horse deals and much more! For more helpful tips on buying a horse download my guide ‘10 Mistakes Made by Horse Buyers’ from my website. Subscribe to my newsletter
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Megan GundesenCreating happy horse and rider partnerships is what we aim to do. Archives
September 2020
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