Horse Lease With Option To Buy Agreement
Always insist on Major Medical and Mortality. The mortality binder should be in the amount of his sale price. Some sellers insist on loss of use insurance as well. Get a good contract written by an equine lawyer licensed in your state. It might cost a couple hundred bucks but it is worth it. Involve your trainer and make sure they can vouch for the coach of the potential lessee. State in the lease, the horse must remain under the supervision of the coach for the duration of the lease. This part is key. Make sure you and your trainer have confidence in the coach on the other side and make sure the horse will remain in their barn and in their program.
horse lease with option to buy agreement
Finally, if the lease option makes you wary, maybe you can get your feet wet with a shorter term arrangement like a six month lease, or maybe even three months. But realistically, if someone is willing to plunk down 40% of the price of a horse on a one year lease, they want the lease to work out as much as you do.
I guess this has just come up from quite a few interested parties, so was wondering if this had become the new norm while I was being a hermit with the dogs?? The last time I was a buyer I felt greedy asking for a one week trial on my mare and even that was really hard to get. I had also done a payment plan with my longtime trainer on another horse, but once I committed to buy and signed the contract there was no backing out, I still owed those payments no matter what happened to the horse in the meantime (who actually did have a freak catastrophic injury that ended his career a year later and he was a pasture ornament for the next thirteen years) - which is probably why this whole idea has me thrown for a loop.
I had also done a payment plan with my longtime trainer on another horse, but once I committed to buy and signed the contract there was no backing out, I still owed those payments no matter what happened to the horse in the meantime - which is probably why this whole idea has me thrown for a loop.
The contract has a lease price with a time frame and an option to buy price within a specified time frame as well. If the contract has passed and no decision then yes I suppose they could try and negotiate a different price.
Others have stated a lease to buy option. To add my two cents, the difference between an outright lease and a lease to buy is where the potential money is going. In an outright lease, the leasee is paying $X amount per month to ride/take care of horse (depending on lease agreement). That horse may or may not be for sale for $XXX amount. That amount is fixed. In a lease to buy situation, an individual may have all or part of the lease money go towards the sale price.
My friend did it when she was having a hard time finding a buyer. It was a one year lease with a lower purchase price if they bought within the first six months of the lease. Her benefit was not having to pay the upkeep on the horse as well as the extra stall it created for a new horse. And the woman leasing her horse ended up buying him at the end of the lease, so everyone benefitted.
You might use this agreement to loan a young, energetic horse for eventing to an upcoming youth rider who will give it national competition experience as well as feeding, stabling and caring for it. Or you may have a pony that requires recreational riding for exercise but no-one to ride it. Leasing it might be a solution that reduces the cost to you of upkeep, allow someone else to enjoy riding (maybe including at local shows), and keep the pony fit and healthy.
This template is designed to form the basis of an agreement that suits your exact arrangement. It covers a number of possible uses: including general riding, eventing, jumping, and showing. The value of the animal could be high or low, the lease amount paid could be any amount and the term could be measured in months or years.
A well drawn legal agreement protects you and the horse. Importantly, if there are any disagreements, having the terms of the lease written down allows you to refer back to what you agreed and resolve potential disputes before they arise.
To make your life easy, we have provided multiple options in many areas including responsibilities for care and maintenance, payment of the lease, options for buy-out at the end of lease, participation in competitions, insurance obligations and much more. By and large, you can set the terms you want.
Given the opportunity, most riders would love to have a horse of their own. But sometimes buying is not the most practical option. Leasing may be a good alternative, one that provides many of the pleasures and privileges of ownership without the long-term commitment.
Even in an arrangement between yourself and a friend, misunderstandings and disagreements can arise-and it is in the best interest of everyone, including the horse, to clearly define the terms you are agreeing to.
Although it may be tempting to make just a verbal agreement, Julie Fershtman, an attorney who specializes in horse-related litigation, emphasizes the importance of putting any agreement into writing.
The most obvious detail is the type of lease. Do you want to try a full lease or a partial lease (also called a half-lease or share board)? In a partial lease, more than one person may be leasing the horse at the same time (or you may be sharing the horse with the owner), so riding days will need to be divided up between the parties. You may be allowed to ride only two to three times a week, but a half-lease is usually cheaper and less complex and may work out just fine for someone who is not into serious competition.
Intended Use Both Roni McAbee and attorney Julie Fershtman emphasize that the intended use of the horse is important to discuss. What activities are you planning to do with the horse? Are you allowed to show him? How long can he be ridden? How often? What restrictions are there?
McAbee, who has leased horses to numerous people during her career, does not allow jumping outside of lessons. She also has strict policies about grooming before and after the ride. To be certain that her policies are enforced, she never lets her animals leave her property. Of course, if you are not the owner of a stable, you may not have the luxury of leasing to someone in the same barn.
Even though the list of considerations may seem daunting at first, equine leases can and often do work out to the benefit of both parties-and for the horse as well. The key is to be informed before you make an agreement, enter into a lease only with a person you trust, tailor the conditions to suit your particular situation, and make certain that the terms are fair before agreeing to them.
Offering a horse for lease can be a good option for an owner who is unable to ride or care for their horse due to physical, time, or financial constraints but still wishes to maintain ownership. A lease can be an alternative to selling the horse, a way to cut maintenance costs, or an avenue to ensure the horse remains in work.
While some verbal contracts are considered binding in Maryland, getting the agreement in writing is a good idea. A well-written lease can protect the owner (also called the lessor) and the lessee (the person leasing the horse) from liability and ensure both parties understand their rights and responsibilities. An equine lease can take many forms, depending on how the lease agreement is constructed. Consider the following items when preparing or reviewing a written lease agreement.
A full lease means there are no restrictions on when the lessee can ride or otherwise use the horse. In a full lease, the owner typically does not use the horse. A partial lease, sometimes called a half lease, means the lessee can use the horse only part of the time. Partial lease agreements should spell out exactly when the lessee is permitted to use the horse.
A horse may become injured or fall ill during the life of the lease and require veterinary care. How will this responsibility be handled? Who will make the medical decisions? How will the parties distinguish when a lessee has authority and when the owner has authority? These are all important considerations before entering into the lease.
Insurance is available for horses; specifics vary, but most companies offer mortality, loss of use, and medical/surgical insurance. If the horse will be insured, the lease should specify what type of insurance will cover the horse, the value of the policy, who will pay the premiums, which party will be named as the insured on the policy, and which party will be named as a third party beneficiary.
For example, Terry, a resident of Pennsylvania, leases a horse for his daughter from Ashley, a resident of Maryland. In the lease, Terry and Ashley agree that Maryland law will apply but venue is proper in York County, Pennsylvania (where Terry lives). 041b061a72