Co-Ownership of Horse Agreement

4 February 2022

Blog post

WHEREAS the Seller and buyer wish to explain in more detail their agreement to the continuation of the races and the management of the horse during the continuation of the race; Condominium agreements are sometimes lacking because the parties are excited about the new horse and rush into things without thinking about the details. Perhaps the proposed co-owners are good friends and believe that they will be able to settle disputes, so there is no need to enter into a detailed agreement. Perhaps it is a trainer and a client who are the co-owners, and because of the client`s trust in the trainer or because of the trainer`s experience in co-owning horses, none of them consider that a detailed agreement is necessary. Whatever the reason we don`t agree on the rights and obligations of each party, this is the #1 reason why the condominium goes south. Question: I have the opportunity to buy a horse for later resale with my trainer, and I am delighted! I will be able to ride and enjoy the horse while my trainer also invests the necessary training hours to sell it later for a hopeful profit for both of us. I have been with my coach for some time and I have full confidence in her and in this arrangement; However, I have heard horror stories about condominium deals going wrong. What do we need to do legally to protect ourselves in the event of litigation or in the worst case? Dismissal of the Manager (Article 17(d)): The co-owners may at any time agree to appoint a race manager whose duties and obligations are set out in an addendum to this Agreement 14.The parties to this Agreement agree that the names of the investor`s members will form part of a confidential list of clients and a trade secret. Therefore, the original owner and the administrator agree not to establish direct or indirect contact with any of the members of the investor regarding investment opportunities in the horse or other horses, unless permission to do so is given in writing on a case-by-case basis. The original owner and manager agree not to conduct any transactions or series of transactions of any kind with the members of the investor or to collect fees from the members of the investor that are not unreasonably refused without the prior express written consent of the investor. In the horse industry, registration documents do not automatically reflect true ownership. When you buy or sell a horse, you will receive written confirmation that the horse has been sold and the title has been transferred.

Insist on a purchase agreement and keep a copy of the document. 2.         Condition precedent. Buyer shall pay seller a purchase price of four hundred and three thousand nine hundred and nine hundred and $100 ($453,900.00) (the “Purchase Price”) at the closing price set forth below, plus thirty-nine thousand seven hundred and sixteen and $25/100 ($39,716.25) (8.75% of the Purchase Price), state and local taxes on interest of fifty-one percent (51%) on and on the horse, provided that the Buyer must pay the Buyer within five (5) days of the conclusion of this Contract. must ensure that all parties have a veterinarian of their choice in place to examine the horse, including blood sampling for analysis, and the buyer`s representative will examine the horse to determine if it is suitable externally and any examination performed by the buyer, or his representative will be at the sole expense and expense of the buyer. Veterinary examination and external examination are acceptable to the purchaser, including, but not limited to, X-rays, litter and examinations to determine whether the horse is healthy and healthy at the closing date and insured at standard rates for full mortality coverage for horses of its age without exclusion, issued by Lloydâs of London or another comparable insurance company (“veterinary examinations”). If the results of veterinary examinations are not acceptable to the Buyer or if the horse is not insurable at standard rates for full mortality coverage, at buyer`s sole discretion or if buyer determines that any of the representations and warranties are incorrect, Buyer must notify Seller no later than the closing date. in such a case, this Agreement shall be null and void and shall have no force or effect. If the results of the veterinary examinations are acceptable to the buyer, the buyer must deliver the purchase price in full to the seller in funds immediately available at conclusion.

The best way to try to make everyone happy is to make sure everyone knows their rights and responsibilities from the beginning. For example, if more than one co-owner is a rider, it must be determined in advance how often each owner can ride or show the horse. This ensures that each owner receives a fair share of the rides and does not run the risk of overloading the horse until it runs out of gas. In addition to the agreement, the two co-owners may also be advised to form a limited liability company (LLC) together and that LLC to take possession of the horse. The advantage that it is a liability protection for both of you in the event of a negative situation, e.B. if the horse injures someone else. Otherwise, even if you take out liability insurance for horse owners, you could be held personally liable for your trainer`s actions with the horse, as you are a legal co-owner. Some terms and conditions you may want to have under the contract are: 40. Â This Agreement and the Annexes contained herein constitute and supersede the entire agreement of the parties with respect to all prior written and oral agreements, understandings and negotiations with respect to the subject matter of this Agreement.

CONSIDERING that the Buyer and the Seller (the Buyer and the Seller hereinafter sometimes referred to as “Co-owners”) have agreed, when handing over ownership of the undivided stake in the Horse to the Buyer, that the Buyer and the Seller will only conclude in co-ownership of the horse for racing purposes under the conditions under which the Horse is managed by the Buyer as a racehorse; and you should ideally consider the points of this document before committing to publishing it, and complete the document shortly thereafter. For example, do you want the driver to use certain service providers such as veterinarians? Who covers what costs and who decides how the horse is kept? Look at areas where something could go wrong with the proposal and ask yourself, “What would we do if…” We recommend that you write short notes between you about how your agreement will work, and then formalize the agreement with this document. (b) the agreement as a whole. This Agreement and the points mentioned and attached herein constitute the entire agreement of the parties with respect to the subject matter hereof. .