# Buying a Horse With Payment Plans



## poundinghooves

I've found a horse that I'm pretty sure I want. However, I recently got hit with owing several hundred in taxes (looong story but I worked as a nanny and they didn't tell me till the last of the year that they were claiming taxes on me- which means that I had to file as an independent contractor, even though nannies are NOT independent contractors and they should have been taking taxes out of my paycheck but they didn't, so now I owe several hundred!). So that really cut into my savings. However, the owner of this horse offered to set up payment plans with me. I am not sure yet how we will work it out but I think I will be paying over 2/3 up front and the rest will be paid over the next three months. My question is, what should be in the contract? I need to have peace of mind that she won't try to say I didn't pay and try to come get the horse and she needs to have peace of mind that she will get paid! So everything needs to be in a contract so that we're both covered. Are there any sample contracts online that you know of? Any experience (either as a buyer or seller) with this type of thing? Advice apprreciated! 

Also, I know many of you may be thinking that if I can't pay for a horse upfront, then I can't afford a horse. The only reason I can't pay the whole amount upfront is because of my savings getting cut into with the taxes. However, I do have a job and have had a steady job history since I was 15. The seller *WILL* get paid! I can afford the payments and the cost of upkeep (And yes, I do understand how much horses cost- I currently have two minis and a Welsh Pony). If I couldn't swing it, then I wouldn't be pursuing it. I still live at home, where the horse will be kept, so I do not have to pay board (For me or the horse, haha!). I'm not asking for advice on if I can afford it or not, I'm asking for advice on how to write out the contract to cover both me and the seller!


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## DraftyAiresMum

I bought my gelding on payments. In the contract, we put how much I was to pay each month and what date it was to be paid on or by, plus the ultimate date I was to have him paid off by. I always paid by either check or debit card (I bought him from my old BO, who accepted debit/credit cards for paying board and such), so there was always a paper trail. I kept ALL receipts and made sure my BO gave me a receipt for my payment separate from the debit card receipt I got when I paid. When I ended up having to extend our contract to pay him by a few months due to unforeseeable circumstances, I made sure to get a revised contract with the new payoff date signed by both of us.
_Posted via Mobile Device_


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## NorthernMama

Write up a regular bill of sale and at the bottom indicate the payment made on the date of pick-up / delivery. Then "Balance of $xxx to be paid in three installments of $xxx on May 1 2015, June 1 2015, July 1 2015 or sooner."

If the horse is registered, do the owner transfer right away - same day. Have the docs ready for the seller's signature.

If that's good enough for the seller, it's good enough for you. If you don't pay, the seller can still come after you in small claims but there is not clause that they get the horse back, especially since you are paying most of it upfront. 

If the owner wants more security, then add in a clause that you can't move or sell the horse until paid in full and that the balance is due even in case of the death or illness of the horse. 

If the seller is picky, (s)he can have a lien on the horse basically. I think they aren't worried about it or why would they sell you the horse without it being paid in full anyway?


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## Chasin Ponies

Something to watch out for and probably consider in your contract is what happens if the horse gets hurt or injured before he is paid off. Or what happens if he dies. Who pays for the blacksmith and any vet care?

You may want to pull up and installment agreement like this and modify it to suit your needs:
http://equine2.com/static/SellerFormInstallmentSale-WithPossessionDate.pdf

These transactions are somewhat common but can turn ugly in a hurry if there is no contract. Everyone involved needs to be clear on the terms.

Good luck & have fun!


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## MyBayQHFilly

I would never buy a horse on payments, it's just not in my nature. Too many things can go wrong.


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## farmpony84

I made payments on my first horse...


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## Dreamcatcher Arabians

This agreement made this ______ day of ______________, by and between , hereafter referred to as “Seller” and ______________________, hereafter referred to as “Buyer”.

The parties hereby acknowledge that this agreement is made for the purchase and sale of ______________________________ (description of horse), known as ________________________________(horse name, registration number), foaled on ___________________.

A. Seller guarantees that he has full power to sell the animal, the title is clear and free 
from liens and is unencumbered, and further, he will defend the same against the 
claim or claims of all persons whomsoever.

B. Buyer agrees to purchase the animal as is and agrees that significant issues have
been discussed to their satisfaction. Buyer acknowledges that Seller has advised 
Buyer that a pre-purchase examination, by a qualified veterinarian of Buyer’s 
Choice, is encouraged. Buyer further indicates that they do ________
or do not ________ wish to have a PPE done. 

C. Seller agrees that all routine yearly vaccines will be current prior to transport of the 
horse. 

D. This bill of sale represents the entire agreement between the parties. No other 
agreements or promises, verbal or implied are included unless specifically stated
in this written agreement. 
E.	This bill of sale is entered into in the State of  , County and shall be
Enforced and interpreted under the laws of this state and county. 

As consideration Buyer agrees to:

1.	Buyer agrees to pay a non-refundable deposit in the amount of $___________ 
US Currency in cash to remove Horse from sales lists and to hold the Horse until
_________________.

2.	Buyer agrees to pay a monthly payment of $________________ US Currency in cash 
or by personal check on or before _________________ each month, for ________ months, with balance paid in full by ________________________. 

Buyer understands that until the horse is paid in full, the horse may not leave the Seller's premises. 

3.	Buyer agrees to assume all veterinary, board and farrier costs accrued from 
_______________. Buyer will pay cost of Coggins and Health Certificates in
the amount of $_________, to Oklahoma State University Veterinary Hospital. 

4.	Buyer understands and agrees that in the event that balance owed on Horse is not paid in full by __________________, sales agreement and Bill of Sale are null and void, and full ownership remains with Seller and Buyer shall have no further 
entitlements to Horse. 

5.	Buyer understands and agrees that all bills accrued on behalf of Horse must be paid in
full before said Horse may leave . 

6.	Seller agrees to promptly execute all necessary paperwork and to take all necessary 
Steps to transfer ownership and registration of the Horse to Buyer at no cost to Buyer, 
Upon payment in full of all monies owed by Buyer. 
In the event a dispute arises under this Agreement, the prevailing party will be entitled to all reasonable costs and expenses incurred by it connection with such dispute (including, without limitation all reasonable attorney’s fees and costs incurred before and at any trial, arbitration or other proceeding), as well as all other relief granted in any suit or other proceeding. 

Purchaser accepts the Horse by signing this Bill of Sale, and risk of loss passes immediately. Purchaser is immediately responsible for all veterinary, farrier and transportation expenses after the date hereof. Purchaser is immediately liable for any damage or injury caused by Horse to Seller or any third party. 



____________________________________________
Buyer’s Signature & Date



____________________________________________
Seller’s Signature & Date


Here's a copy of my sales contract, you can use it if it fulfills your state's requirements. Since I will not release a horse before it's been paid in full, I would also have you do a board contract for the number of months the horse was to remain with me. I very rarely will do payments, I just don't like all the entanglements.


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## WildAtHeart

I don't have much to offer on the contract but I do know this...

Don't deal in cash. I prefer internet transfers, that way you both have records. You could do cheques too; but you may not like it because you don't know when she'll cash it and she may not like it because it may bounce. So long as there are records of payment.

Congrats on your soon-to-be-horse


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## DraftyAiresMum

Dreamcatcher Arabians said:


> Since I will not release a horse before it's been paid in full, I would also have you do a board contract for the number of months the horse was to remain with me..


This is basically what my old BO did when I bought Aires. Part of the contract stated that I had to board Aires at his barn until he was paid off in full. If I moved him before he was paid off, it would be considered theft and would be reported as such.


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## Dreamcatcher Arabians

DraftyAiresMum said:


> This is basically what my old BO did when I bought Aires. Part of the contract stated that I had to board Aires at his barn until he was paid off in full. If I moved him before he was paid off, it would be considered theft and would be reported as such.


If I thought someone was going to come in and try to steal the horse (take it early) I wouldn't do the contract, they'd just have to pay in full right now. LOL!


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## DraftyAiresMum

Dreamcatcher Arabians said:


> If I thought someone was going to come in and try to steal the horse (take it early) I wouldn't do the contract, they'd just have to pay in full right now. LOL!


My old BO was an untrusting old codger. I didn't balk at it. I had no reason to want to move the boy at that point. Sure as shootin' within a week of paying him off, though, we were outta there. :wink:


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## EponaLynn

You want to be VERY clear who owns the horse ,when you pay the 2/3, and during the payment process and that it states you own him fully after X amount of payments of X amount of money. Also a provision for what happens if he is not paid off by said date.


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## Saddlebag

Did you talk to an accountant? There may be legit expenses you can claim and it can be adjusted if necessary. I think you are taking a chance on losing a lot of money if you don't pay for this horse outright. Yes, you've been hit with one unforeseen expense but others have a habit of showing up as well. I will strongly recommend you wait until you can pay for the horse in full. How much have you set aside for boarding expenses as I doubt if the seller will let the horse off property until paid in full. Has that even been discussed. Vet bills? Farrier? Keep your money in your bank account, not the seller's and when you have enough, that's the time to buy.


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## Chevaux

You mentioned something about paying the sale off in three months, right OP (if I read it correctly)? Would it be possible to work out a lease agreement for that period of time where you are responsible for board and the owner medical (or something like that) with you paying the whole price once you've got cash in hand? I think that may be preferable to caring the debt, if you can swing it, as it may give you some leeway for handling any unknown surprises that could crop up in that time.


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## Saddlebag

If the seller takes your money and decides to screw you there's nothing you can do. Small claims may order her to pay but it doesn't mean you'll get your money back, contract or not. This is why you should wait until you have all the money. Who knows, by then, if she still has the horse, she may be willing to drop the price as she can either do that or keep feeding it. I made a bit of a low bid on a horse and told the seller this was the most I could manage as I would be facing trailering costs of $400. I told her my offer would stand for 30 days. Two weeks later she emailed to accept my offer. And I've been feeding him ever since. I've picked up a few good saddles and a better camera that way too. The thing is, if you do this, you must have the money on hand to honor your end. If she still has the horse in three months time, then obviously it's either priced too high or something hasn't been agreeable to prospective buyers.


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