lease to buy question

[BlissfulJumper]

okay so i'm selling my horse and i put on his ad that i would do a lease to buy option because i know money is tight and some people can't shell out a bunch of cash quickly. I had a nibble on the ad and sent the person a list of requirments about the lease to buy. I want to know if you guys think its asking to much of the leaser or if i forgot anthing. cause i don't wanna get screwed over or anything.. I also need to know what you guys think is a reasonable monthly price...TIA


Requirements for Lease to Buy for:
16.1hh Quarter Horse Gelding. $12,000.

1)Leaser will have to pay set amount (fair enough to the buyer and seller) of money for a set amount of years.
2)Leaser will have a two week trial period to try said horse out and decided if they would like to purchase him.
3)Leaser will have to have a set deposit on said horse for the trial period and will be refunded the deposit at the end of trial period if the leaser doesn’t wish to purchase said horse. Deposit amount will be discussed with Leaser and Seller and will be listed in the contract.
4)Leaser will either have to provide insurance on said horse in case of any emergency medical issues or death of said horse or cover emergency medical issues straight out of leaser’s pocket.
5)If horse’s death does occur insurance will have to pay the remaining balance owed on the horse or the leaser will have to pay the remaining balance out of leaser’s pocket.
6)Leaser is allowed to move said horse off of (barn) to another stabling property approved by seller. If said horse is moved off of (Barn) property to another stabling property, leaser will have to provide a weekly update on said horse. Seller is subject to stop by new stabling property as she wishes to make sure horse is in proper care.
7)Leaser will cover all medical and farrier cost.
8)Signing the lease to buy contract, means that you recognize that all monies paid for monthly leasing is non refundable. For example, if you lease said horse for 6 months and pay the seller $3,000 for the 6 months and decide to not purchase said horse for some reason, you will not receive the 6 months money back.
9)This is not a lease to buy contract.

 

[FrmGrl]

I can tell you that trials are a nightmare. People can ruin a perfectly good horse in two weeks, then send the horse back broken. JMO.

 

[BlissfulJumper]

I can tell you that trials are a nightmare. People can ruin a perfectly good horse in two weeks, then send the horse back broken. JMO.

i personally like trials just because you can see the horse away from its element but i see your point also. I mean if the horse is ill or hurt at the end of the trial i will keep the deposit and hope to god it isn't permant. I guess im just going to really trust people and hope they wouldnt try and ruin my horse

 

[FrmGrl]

i personally like trials just because you can see the horse away from its element but i see your point also. I mean if the horse is ill or hurt at the end of the trial i will keep the deposit and hope to god it isn't permant. I guess im just going to really trust people and hope they wouldnt try and ruin my horse

Its really important to determine a match before the horse leaves. A friend of mine sent hers out, trainer and all for the person trying the horse. At the end of it all the horse came back wild and jumped as if it had been gotten in the mouth many times over. Just be careful. Good luck!

 

[Sparks]

Trials or lease to own is great for the buyer but way too risky for the seller. I personally would not let my horse leave the property without cash/certified check for the full purchase price.

Buying the horse is the easy part, the monthly upkeep is what ends up costing you. If the buyer can't really afford the horse, do you really want it going to them? Is it your job to help them support their horse habit?

Sorry, I was burned once selling a horse, even ended up in court. I still got screwed in the end.

 

[Duckz]

Before you let a horse go on trial or do this lease-to-own thing, go post this over at the Chronicle of the Horse forums. There are many pros posting there who have been there, done that, and can give you tons of advice. Don't be surprised when they give you the horror stories though. After hearing about all the shady trainers and crooked people in the horse world, I will *never* let a horse go out on trial.

At the very least, they'll be able to tell you if your agreement is reasonable and if it will hold up in court.

Good luck! If this is the same horse I saw at Flat Iron, he's super cute and I'm sure you'll find him a good home

 

[campinmutt]

if you do insurance..the person trying the horse pays the premium....the owner of the horse gets paid should something happen...but insurance is very hard to get money from. must follow their directions to a T ....necropsy and all....be careful....horse must return inthe condition it left ..physically and mentally

 

[SouthernMdRocks]

i personally like trials just because you can see the horse away from its element but i see your point also. I mean if the horse is ill or hurt at the end of the trial i will keep the deposit and hope to god it isn't permant. I guess im just going to really trust people and hope they wouldnt try and ruin my horse

I don't think anyone would "try" and ruin your horse, but things happen..and they happen sometimes due to others stupidity... I lost a horse trusting someone...due completely to their ignorance. Oh they boo wooed and acting so upset but they never did right by what they allowed to happen.

 

[bosox]

i am not a lawyer nor do I play on on tv

but if you are going to write a contract--then it must be done correctly.

1st-if you are not 18 this contract is voidable--so if I were the buyer--I'd stay clear.

2nd-if you want to have a binding contract that holds some weight in court-get a good equine lawyer.

3rd-if you are going to use legal terms-use them correctly.
Leasee--the person who is leasing the item not leaser
Leasor--the person who is being leased from.. (again not leaser)
Leaser--not the correct term

4th-if you are going to call this a contract for purchase then take out leaser (which really should be leasee) and call them buyer. Ambiguity goes against the writer. Meaning=if it is unclear-it will go against you in court. This is very confusing. The buyer is the leaser (what is that? a buyer or a leasee?) this is a sale not a lease. (what is the leaser in there for then?) Points 6/8/9 are not in agreement with each other.

5th-there are so many maybes and what-ifs in your contract If they buy the horse on a payment plan--the horse is theirs. You will just be responsible for getting the rest of the money.

If in this market, they can't afford the purchase price--they may not be able to afford said horse IMHO. I'd steer clear of this situation all together. Get someone to lease on site--if you want this horse to be in a good home. Either free lease (the leasee pays all the horses expenses) or lease with a fee but you still retain ownership.

Don't buy something else unless your parents or you can swing two board payments.

 

[BlissfulJumper]

but if you are going to write a contract--then it must be done correctly.

1st-if you are not 18 this contract is voidable--so if I were the buyer--I'd stay clear.

2nd-if you want to have a binding contract that holds some weight in court-get a good equine lawyer.

3rd-if you are going to use legal terms-use them correctly.
Leasee--the person who is leasing the item not leaser
Leasor--the person who is being leased from.. (again not leaser)
Leaser--not the correct term

4th-if you are going to call this a contract for purchase then take out leaser (which really should be leasee) and call them buyer. Ambiguity goes against the writer. Meaning=if it is unclear-it will go against you in court. This is very confusing. The buyer is the leaser (what is that? a buyer or a leasee?) this is a sale not a lease. (what is the leaser in there for then?) Points 6/8/9 are not in agreement with each other.

5th-there are so many maybes and what-ifs in your contract If they buy the horse on a payment plan--the horse is theirs. You will just be responsible for getting the rest of the money.

If in this market, they can't afford the purchase price--they may not be able to afford said horse IMHO. I'd steer clear of this situation all together. Get someone to lease on site--if you want this horse to be in a good home. Either free lease (the leasee pays all the horses expenses) or lease with a fee but you still retain ownership.

Don't buy something else unless your parents or you can swing two board payments.

Thank you and I know it was not completely gramitcally correct but I needed to respond to the person as soon as possible. I'm smart enough to know that my parents would have to sign a contract, i've sold horses multiple times and know that. Also my parents are general contractors so we have a paid employee who knows all about contracts who I was going to have write the contract then have a equine lawyer look over it.

This horse will not be free leased in any way. I need the money for a new horse and free leasing will not give me that.

 

[appendixqh]

Everyone here has given you some pretty good advice. I would never let a horse go out of the geographic region "on trial". Way too risky. I would however, acccept full payment and offer a 1 week 85% buyback clause (provided the horse is in the same mental and physical condition as when it left). You are asking for 12k for this horse...if someone can't come up with half down, then they shouldn't be looking at a 12k horse! (JMO of course).

On the flip side, I have considered leases on some of my mares to show homes. That way, I gain exposure on the mare, I guarentee the payment of the mare in full with a required insurance clause, and should something freakish happen and the horse goes permanently lame, I now have a horse to throw back into my breeding program that has show credentials.

Yes, the market is tough. Good horses still sell, but often times for a lot less than they wen't for a year or two ago. Good luck!