Equestrian

Canada's Best
Practices
Guide for

BUYING AND
SELLING A
HORSE
 Table of
Contents
Photo courtesy of Matt Waples
Introduction 1

a) How to go about buying

the right horse for you 1

b) Preparing and marketing

your horse for sale 6

c) Bill of Sale/Agreement of
Purchase and Sale. 7

d) Veterinary pre-purchase
examinations 8

e) Agents, commissions,
and finder’s fees… 11

f) Auction sales 13

g) What to do if problems
arise post purchase 13

h) Afterword 15

Additional Resources 16

Appendix A 19
Bill of Sale

Appendix B 20
Agreement of Purchase
and Sale

Appendix C 22
Agreement of Purchase
and Sale

Appendix D 24
Buyer’s Statement

Appendix E 26
Sales Agent Agreement

Table of Contents iii

Introduction
In November 2011, the Industry Council of Equestrian Canada held
its first Equine Industry Forum and one initiative which was identified
at this meeting was the need for a comprehensive publication which
addresses the best practices recommended for buying and selling
a horse.

This Guide is primarily geared to the buyers and sellers of sport

horses that are, or will be ridden under saddle. However, these best
practices apply to all horses and ponies, and are recommended
as  the best practices that should be followed by all members of
Equestrian Canada.

The intent of this Guide is to provide education to both buyers and

sellers so that each party will better understand the issues involved
with buying a horse and the result will be a sale transaction that is
satisfactory for both the buyer (or “the purchaser”) and the seller (or
“the vendor”) and including any agent(s) involved in the transaction.

There are many responsibilities involved with the proper care and
handling of horses, and the owner of a horse(s) is taking on a very
serious long term responsibility to ensure their animals are properly
taken care of and have the best of care for a healthy, happy life.
Equestrian Canada recommends all owners of horses refer to the,
“Code of Practice for the Care and Handling of Equines – 2013”. This
comprehensive document was completed in partnership with the
National Farm Animal Care Council (NFACC) and can be found
on either the Equestrian Canada website at: www.equestrian.ca
or the NFACC website at: www.nfacc.ca. Horse owners should
reference section one of this document, “Duty of Care.”

a) How to go about buying the right horse for you.

Horses are complicated animals, and it takes years of experience to
gain the necessary knowledge and skills to evaluate them and find the
most suitable horse for you.

Introduction 1
 Buying a horse involves not only the initial purchase price, but an
ongoing large financial commitment in terms of upkeep and costs
such as board, farrier, veterinary, and training. It is essential to follow
best practice guidelines as both the purchaser of a horse, and the
vendor, in order to avoid future complications.

Unless you are extremely experienced, it is best to speak with your

trainer and/or coach, to discuss the general characteristics of the
type of horse that should be sought for your needs. You can also get
additional guidance by speaking with your equine veterinarian and
other horse professionals you may know.

As your research progresses, you will gain an understanding of the

current market for horses and the range of asking prices based on
age, ability, size, etc. This will help you set a budget that is right for
you. Before finalizing your personal price range, remember to include
auxiliary costs, such as that of a professional, if one is assisting you;
the cost of a veterinary pre-purchase exam(s), if you intend to have
one performed; and the cost of transporting the horse.

It is also essential to properly evaluate the current level of your riding

ability and what aspirations you have for the horse you want to buy.
Decide what age range, size range, and level of training or show
experience is most suitable for your needs. Then set your budget and
begin looking at horses that fall within your price range. Additional
criteria that may or may not enter into your selection process might
also include the temperament and personality of the horse, the sex,
the breed or registration, and perhaps even the colour.

As stated above, if you are using a professional to help you search for
and evaluate horses, you should expect to pay for this service. This
can be done by way of a fee for the time spent with you, or through a
commission on the selling price of the horse (see section on agents,
commissions, and finder’s fees for details).

There are a number of avenues to explore to find horses for sale. Below
is a list to help you start your process.

1. Online equine websites that have listings for horses for sale.
There are many of these websites available, and most horse
magazines have now moved their horse for sale listings to their
websites.

2. Websites for local stables that cater to your discipline; many will
have horses for sale listings.

3. Websites for breed associations; some have sale listings and may
have links to members’ and breeders’ websites.

4. Attend horse shows and speak with people to find out what is for
sale.

2 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
Photo courtesy of Michael Boyd

5. Speak to people in your area involved with horses and ask what
horses are for sale.

6. Go to equine expositions (most areas usually have one or more

each year). For example, the Royal Agricultural Winter Fair in
Toronto, Ontario, is a great place to look for horses for sale,
especially for hunters and jumpers. The fair is usually held every
November each year.

7. And finally, go to auction sales. This is especially true for

Thoroughbreds and Standardbreds, although auctions are
becoming more popular for riding and sport horses (see section
on Auction sales).

The next step is to go inspect and tryout the horses you have identified
as being within your price rangeand suitable for your needs. If you
are looking at young horses (less than four or five years old), or less
trained horses, you may ask the owner to lunge the horse or turn it
loose to evaluate its movement and free jump if it is to be used for
jumping. Trained horses, especially young animals, should be shown
to you by their regular rider or trainer before you try riding the horse
yourself.

Do not feel obligated to try a horse you feel is unsuitable based on

your observations. Keep your own safety in mind at all times. As well,
if the area where you are to tryout the horse does not appear safe and
has obvious safety hazards, ask to try the horse in a different location.
If you are interested in the horse after the initial visit, you may want to
make additional visits to ride the horse again.

Introduction 3
 Take your coach/trainer with you or a person who is experienced in
evaluating horses. If possible, take someone who can take a video
of your tryout. This helps you evaluate how the ride looked, and is
particularly useful if you are trying out a number of horses on a given
day.

If you think a horse you have tried is worth further consideration, ask
the owner/agent the following questions:

1. Has the horse had any health issues, for instance colic?
2. Has the horse had any operations or medical procedures?
3. Is the horse currently on any medications, or has it ever been on
any medications in the past?
4. Does the horse have any vices, i.e. cribbing, weaving, pawing,
kicking, biting, wood chewing, etc.?
5. Has the horse ever had a veterinary pre-purchase examination
done? If so, are the x-rays and the written report available from
this exam and/or can you get consent to discuss the exam with the
veterinarian who conducted it?
6. Does the horse have any known behavioural problems?
7. What feeding program is the horse on and does it have any special
issues, such as allergies or special feed requirements?
8. Does the horse require shoes? Has it been shod before and does it
require any special shoeing?
9. Is the horse up to date on basic preventative health care such as
vaccinations, deworming, and dental care?
10. What management routine is the horse accustomed to in terms of
stabling and turnout?
11. And finally, has the horse travelled in a trailer before and if so, does
it load and travel well?

If you are extremely interested in a horse, a further step to consider

and speak to the vendor about would be to ask if you could move the
horse to your facility for a few days to two weeks, for a trial. Though
many vendors do not allow this, at minimum, the vendor should
certainly allow a prospective buyer to come back several times to
tryout the horse. If a longer tryout is agreed to by the vendor, the
prospective buyer should expect to arrange and pay for all of the costs
associated with the transport of the horse, to and from the vendor’s
facility if a sale is not finalized.

The key issue to be aware of during this type of trial at the purchaser’s
facility would be if an injury or illness were to occur to the horse
while in the purchaser’s care. The best solution to address this is for
the potential buyer to place a full mortality insurance policy with the

4 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
owner named as the beneficiary. This type of policy generally costs
in the region of three per cent for an annual premium of the value of
the horse (i.e. insuring a horse for $10,000 would be a $300 annual
premium). If the horse is purchased, the buyer can keep the policy
in place and change the beneficiary to him or herself, or cancel the
policy altogether. If the horse is returned to the vendor, the policy can
be cancelled and a large part of the annual premium payment would
be returned to the buyer. If an insurance policy is not obtained, the
buyer and seller must both be aware of the potential risks involved in
this type of agreement, and should speak in advance about how any
potential issues would be addressed if they were to come up.

Purchasers should realize that a vendor must be very confident in the

care that will be provided to their animal if a trial period is arranged.
It is recommended that the parties draw up an agreement describing
the dates/duration of the trial, responsibilities of each party, and
restrictions of use of the horse during the trial. The vendor may ask
for a deposit of as much as ten per cent of the sale price, some portion
of which could be forfeited if an injury were to occur during the trial.

The conclusion of your search and tryout process will be to decide

if you are going to make an offer to purchase the horse. A decision
must be made at this point to determine if the sale will be conditional,
subject to a satisfactory veterinary pre-purchase examination, or
not. Depending on your level of experience, the use for the horse,
and the amount of the purchase price, one could decide to a) forgo
a veterinary exam and decide on the final selling price, b) have only
a basic veterinary exam done evaluating the general health of the
horse, i.e. heart, lungs, eyes, etc., or c) a full veterinary pre-purchase
examination with x-rays and/or additional diagnostic methods
such as blood evaluation or an endoscopy (for more, see section on
Veterinary Pre- purchase Examinations).

Photo courtesy of Sky's Victory Photography

Introduction 5
 b) Preparing and marketing your horse for sale.
Just as buyers should be organized with their approach to finding the
right horse, sellers will have the best success if they are prepared and
organized as well. The following steps will give sellers the best chance
for a successful sale of their horse.

1. Research the current market and look at the asking prices for
similar horses. This will help you to arrive at a realistic asking
price for the horse. Your coach/trainer may also be able to provide
an accurate appraisal of the horse.
2. Ensure that your horse is in good condition and if under saddle, in
regular work, so that it is ready to be shown to prospective buyers.
3. Have a few good photos of the horse that can be used for online
ads and sent to prospective purchasers.
4. Have some video footage of the horse available. This may include
lunging or free movement/free jumping of young horses, work
under saddle, or even competition footage.
5. If the horse is of particularly high value, consider having your
equine veterinarian do a basic pre-purchase exam with x-rays.
6. Have a good written description of the horse. What training has
it had? Any vices? A health history, including medications and
any special diet, should be included. Also be sure to describe the
horse’s positive traits. Describe what the horse is most suited
for and not suitable for; give the whole picture. The description
should include what the horse can do and may have difficulty
coping with, such as loading on a trailer, being clipped, etc.
7. Decide if you will sell the horse yourself or use an agent.
8. If you are going to use an agent, it is advisable to have a written
agreement. An example of this can be found in Appendix E (this
document is meant as an example only and should be tailored for
the specific circumstances and requirements of each situation).
9. Bear in mind that prospective purchasers may offer you less than
your asking price, and/or the results of the pre-purchase exam
may reduce the horse’s value. Consider how negotiable you are
willing to be in such situations: what is your bottom line?

c) Bill of Sale/Agreement of Purchase and Sale.

There are many forms of purchase agreements, and most
professionals selling a horse will have a form of purchase agreement
that they use. The buyer should take special care when reading the
agreement and it would be advisable to have another knowledgeable

6 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
person review the agreement too. If the form of agreement is long,
complex and has many special terms and conditions, it would be
advisable to have a lawyer review the agreement as well, especially if
the price of the horse is substantial.

A bill of sale is the most basic of documents. Put simply, a bill of

sale conveys title to the horse from the vendor to the purchaser. An
example of a basic bill of sale is found in Appendix (A). An example
of an agreement of purchase and sale between the purchaser and
vendor is found in Appendix (B). This document can include more
information on the payment terms, transfer of ownership, warranties
of the vendor and purchaser, and risk of loss prior to delivery. A bill of
sale may also be necessary to prove title to the horse in order to obtain
a passport for competition.

An agreement of purchase and sale with a form of warranty is found in

Appendix (C). Sometimes, if there is an ambiguity over the findings of
a veterinary pre-purchase examination, a limited warranty, provided
by the vendor to the purchaser, is one method of mitigating risk to the
purchaser. This document provides only one form of such warranty.
The best practice for a vendor would be to make the terms of any
warranty as specific as possible, and to limit the warranty to a term of
no more than two years. Note, the basic premise of such a warranty
should be that it applies only to a condition or finding described at the
time of the pre-purchase examination.

It is stressed that the documents referred to above and in Appendices

A, B, and C, are not suitable for all situations as there are other terms
and conditions that may be required to fit a particular sale transaction.
These attached documents are meant solely as examples, with the
goal of providing general information to buyers and sellers so that
they can think about what is suitable for their particular transaction
and can tailor their agreements accordingly. More examples of these
forms can be found through a brief internet search.

In Quebec, the form of purchase agreement or a bill of sale, may

be different because the province is governed by the Civil Code
versus Common Law, as it is in the rest of Canada. Cheval Quebec
has examples of Sale Contracts and a Bill of Sale on their website at:
https://cheval.quebec/Le- Cheval- Que-savoir-avant-
dacheter-un-cheval-Les-contrats.

Once the agreement of purchase and sale has been signed, the
purchase price has been paid, and ownership of the horse has
changed hands, the horse is now the responsibility of the purchaser.
If you intend to have the horse insured and do not want any gap
between when the sale takes place and when the insurance coverage
takes effect, it is best to begin the process of applying for insurance
coverage sufficiently in advance of the sale being completed.

Introduction 7
 Best practice is for the vendor to receive full payment when the sale is
completed and the horse should then be turned over. If payments are
to be broken up and received over time, a down payment of at least
25 per cent of the purchase price is advised. If deferred payments are
to be made, the best practice is for the purchaser to give the vendor
a series of post-dated cheques for the balance of the sale price. The
vendor should not give the purchaser the horse’s registration papers
or a certificate of ownership until full payment has been received. The
agreement of purchase and sale should contain information on what
happens if the purchaser defaults on making a deferred payment (or
perhaps defined as two payments), such as the rights of the vendor to
seize the horse and with what compensation (if any) to the purchaser.

d) Veterinary pre-purchase examinations.

Once you have found a horse you think is a good match for your needs
and you have agreed on a price with the owner, in many cases, the
next step will be a pre-purchase examination (PPE) by an experienced
equine veterinarian. Please refer to the “Code of Practice for the
Care and Handling of Equines – 2013” in sections 1.1 “Pre-Purchase
Considerations” and 1.1.1 “Pre-Purchase Veterinary Examinations”
for additional information..

The purpose of the PPE is to identify any existing areas of disease

or unsoundness in the horse, and to evaluate the potential for
unsoundness to develop in the future. This information is important
to the purchaser, both so that he or she can ensure that appropriate
care can be provided to the horse, and so that there will be realistic
expectations of the level of use and length of the horse’s career. Some
problems may be serious enough that the purchaser decides not to
buy the horse. Other smaller problems may warrant a discussion with
the vendor as to a reduction in the purchase price. The information
from a PPE may also be useful for obtaining insurance and as a
reference point, should the purchaser intend to sell the horse at a later
date. Some breeders and owners may have a PPE (including x-rays)
completed on young horses in order to determine if there are any
issues present and, subsequently, how much time and training will
need to be invested in the horse. The PPE also serves as a baseline for
the horse and may be used for comparison in later years.

People buying their first horse, or any buyer who is not well versed in
equine health, should understand that there is seldom a PPE where
some finding does not turn up. In all cases, the finding should be
carefully evaluated to determine whether the issue is significant
enough to warrant not purchasing the horse. If the issue appears to
be more serious, a second opinion could be sought from a different
experienced equine veterinarian (or a board certified radiologist if it
is related to a radiography finding).

8 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
Buyers must understand that there is seldom a perfect set of x-rays and
seldom a horse which doesn’t have some small finding. This is where
the buyer must communicate very clearly to the equine veterinarian
the intended use of the horse, the buyer’s skill level, and the purchase
price. A best practice would be for the equine veterinarian to have
their client, the buyer, fill out a Buyer’s Statement, an example of which
can be found in Appendix D. In the end, it is the buyer who has the
responsibility of determining if the horse is suitable for its intended
purpose; the equine veterinarian is only expressing an opinion on the
health of the horse at the time of the PPE.

It is also important for buyers to understand that the veterinarian’s

PPE is based on an examination of the horse at a specific time and it is
not a guarantee that a future condition (that could impair the horse’s
soundness or health) will not develop. However, the veterinarian may
be held to a standard of care where, if a condition does exist at the
time of the PPE, the veterinarian should describe their finding(s) in a
written report and communicate that to the buyer.

Buyers should be aware there can be a large variation in the reading

of x-rays and other imaging technologies between equine veterinary
practitioners. The new generation of digital x-ray equipment is a great
improvement from older film based equipment and allows for the
sharp imaging of features, which were previously not observable or
clearly observable in film based x-rays. Buyers should consider their
options. For instance, if the value of the horse is say, under $3,000,
is a full PPE necessary? In this case, buyers may consider having only
a basic health evaluation done to evaluate the horse’s eyes, heart,
lungs, etc.

Even a basic examination will cost in the range of at least $400 – $600.
A PPE with basic x-rays will likely cost in the range of $800 – $1,200,
and a PPE with a full set of x-rays and/or additional diagnostics will
likely cost in the range of $1,500 – $2,500. A suggested guideline is
that if the value of the horse is anywhere from $4,000 to $15,000, an
examination with a basic set of x-rays should be performed. For horses
being purchased for more than $10,000 to $15,000, a comprehensive
range of x-rays should be considered. The PPE cost is almost always
paid for by the purchaser.It is recommended that the purchaser and/
or their agent be present at the exam. Should a serious finding come
up that will prohibit the sale of the horse, you may want to end the PPE
before spending any more money.

When selecting an equine veterinarian to perform a PPE, the

purchaser should select a practitioner who has not performed any
work for the vendor and is free from any conflict of interest. The
single largest determinant of the quality of PPE’s tends to be the
lack of experience the veterinarian has with performing PPEs. If
possible, determine if the veterinarian has sufficient experience with
the type of horse that the purchaser is looking at. It should also be
expected that the veterinary will ask the purchaser to complete a PPE

Introduction 9
 Buyer’s Statement (see Appendix D). This will ensure that the equine
veterinarian is informed about the purchaser’s intended use for the
horse, selling price, level of riding skill, and other factors that will bear
on the veterinarian’s pre-purchase exam opinion.

Some vendors may ask the purchaser for permission to have access
to the radiographs so that if there are any contentious finding(s),
the vendor can seek a second opinion on the radiographs at his or
her expense. The results of a PPE are the property of the client (the
Purchaser) who paid for the PPE and they may or may not choose to
give consent to the veterinarian to share this information.

What if there is a significant finding in the PPE?

Other than seeking a second opinion or walking away from the
sale, the buyer has two options in this situation. Based on the
veterinarian findings, the buyer could ask for some price concession
to compensate for the level and type of risk indicated in the PPE.
The other option would be to ask the seller for a form of soundness
guarantee for a reasonable period of time. A suggested time limit
would be for up to two years. The agreed upon terms for the warranty
would be incorporated into the Agreement of Purchase and Sale (see
Appendix C for an example).

Footnote:
Buyers should be aware that in Canada and the U.S., there are no
standardized ways of recording or reporting PPEs to clients. There is
also no system for categorizing radiography in order to demonstrate
to a buyer the potential or probability of a finding becoming a
problem. Canadian veterinary practice is to classify x-ray findings
as normal, mild, moderate, or severe. However, the probability of a
finding actually resulting in lameness or unsoundness is not defined,
and may depend on the use and management of the horse over
time. Using evidence based medicine, such as longitudinal studies,
European veterinarians have developed a system to describe the
probability of an abnormal finding potentially becoming a problem.
In Germany, this system grades x-rays as follows:

Class I: Without specific abnormal radiological findings and findings

categorized as anatomical variations (ideal condition).

Class II: Findings mildly deviating from ideal condition; appearance

of clinical issues estimated at less than three per cent in an indefinite
time (normal condition).

Class III: Findings deviating from normal condition; appearance

of clinical issues estimated at five–20 per cent in an indefinite time
(acceptance condition).

10 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
Class IV: Findings severely deviating from normal condition;
appearance of clinical issues likely (more than 50 per cent) (risk
condition).

(Note: Intermediate classification is also allowed as follows: Class

I-II, Class II-III and Class III-V. For more information on this grading
system refer to the Additional Resources section.)

e) Agents, commissions, and finder’s fees.

It can take a great deal of time to sell a horse when you consider
preparation, advertising, dealing with email and telephone inquiries
and being available to properly present and show the horse to
prospective buyers. If you are not able to do all this yourself the
alternative is to hire an agent. There are a great many issues to be
considered and should be defined in a written agreement with
your agent. An example of a Sales Agent Agreement is found in
Appendix E.

Commissions paid to an agent(s) have proven to be one of the most

contentious areas in the process of buying and selling a horse. The
best practice is that an agent, or agents, should only be paid one
commission by the vendor of the horse and this amount should be
disclosed to all parties. Problems can arise when there is also an agent
acting for the purchaser. The commission or fee for an agent acting
for the purchaser can be handled in three ways as outlined below.

1. The commission payable by the vendor is divided between the

vendor’s agent and the purchaser’s agent. This is the model used
in real estate sales.

2. The vendor pays his/her agent the commission that has been
agreed upon and the purchaser pays his/her agent an agreed upon
commission on top of the horse’s selling price. This method will
often lead to negotiations between the vendor, the purchaser and
the two agents as to what the final selling price will be.

3. The purchaser pays his/her agent an agreed upon fee for each
activity involved in acting for the purchaser to locate and purchase
a horse regardless of the price of the horse.

A finder’s fee is simply an amount paid to someone who refers a

prospective purchaser to the vendor. The onus is on the person
making the referral to ask if a sale results from the referral if a finder’s
fee will be paid. Otherwise a vendor may offer to pay a finder’s fee
for specific referrals. Written agreements are seldom used for these
arrangements.

Introduction 11
 A finder’s fee would usually be in the range of one-two per cent of
the selling price but could be as high as five per cent if the finder is
actively listing a horse for sale and generating referrals for the vendor.
In all cases a finder’s fee is absorbed by the vendor from the proceeds
of the sale. Vendors must be cautioned that if an agent has been
engaged to sell the horse for a specific period of time and the vendor
accepts a finder’s fee arrangement, the agent will also be owed the
agreed upon commission from the proceeds of the sale and a finder’s
fee will be payable by the vendor outside of the commission payable
to the agent.

f) Auction sales.
In North America, the sale of sport horses through auction sales has
not yet developed as it has in Europe. Auction sales for Thoroughbreds
and Standardbreds, however, have been used for many years for the
racing industry and there are many animal auctions where horses are
offered.

The best type of auction is where the horses have had a basic
veterinary health examination and at least a basic set of x-rays that
are available for review. As well, the horses should be available for one
to two weeks at the auction site for buyers to watch training sessions
and for pre-arranged tryouts. Some auction sales of Thoroughbreds
and Standardbreds will have a repository of x-rays for examination.
For instance, the Canadian Thoroughbred Horse Society has a
minimum requirement for 36 stipulated x-ray views that must be
available prior to the auction. At these auctions, buyers may well
want an independent veterinary opinion of the x-rays or even an
examination prior to the auction if this can be arranged.

Some auctions may have a buyer’s premium, which is a percent

charge added to the final price charged by the auction house to cover
administrative expenses, and that is added onto the hammer price.
Buyers should read the terms of the auction sale very carefully before
bidding. Buyers should always bear in mind that all sales are final at
an auction and, unless there has been a misrepresentation about the
horse that can be proven (such as age, registration, etc.), it will be very
difficult to have a sale reversed.

The sale of horses on internet auction sites is becoming more

common and a special note of caution should be taken when bidding
on horses listed on internet auctions. If you can’t arrange to see the
horse yourself, at least arrange for a knowledgeable horse person to
physically inspect the horse. With internet auctions of horses, the
adage “buyer beware” should be followed, as horses may not be able
to be inspected closely or tried for suitability from a distance.

12 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
g) What to do if issues arise post purchase.
There are two most common types of issues that could arise after
purchasing a horse. One occurs when the purchaser feels the horse is
not performing as was portrayed or as described by the vendor. The
second issue is related to health or soundness of the horse, arising
post purchase.

Sometimes a riding horse may turn out to be more difficult to ride

or just require a higher level of riding ability. This could especially be
the case if the horse was only tried once or twice before purchase.
There have been cases where a horse has been given a mild sedative
before tryout and will seem to be an uncomplicated, easy ride. This,
of course, is completely unethical and if it could be proven would
in and of itself be enough to constitute having the sale reversed.
The problem of course, is that barring evidence from a third party,
it is highly unlikely this could ever be proven. If blood is drawn at
the time of the PPE and should the purchaser become suspicious of
such unethical practices, the veterinary clinic can test the blood for
evidence of drugs or medications.

The absence (or presence) of vices and behavioural problems should

be stated in the agreement of purchase and sale as a representation
from the vendor to the purchaser. Should any unstated vices or
behavioural problems occur within a reasonable time, post sale, this
would give the purchaser grounds for a discussion with the vendor.

In both types of situations, the first action should be to discuss the

problem with the vendor. Unless there are specific representations or
warranties in the agreement of purchase and sale, there is no onus
on the vendor to reverse the sale and take the horse back. The initial
attempt should be to discuss the problems that are being encountered
with the horse and see if there are any remedies available. Possible
solutions could be some additional training subsidized by the vendor
if the problem is ride-ability related. Some problems are unlikely to
have a simple remedy unless the vendor is willing to reverse the sale
or discuss some concession in the sale price. Purchasers should be
aware that when a horse changes ownership, the vendor cannot be
held responsible for issues that arise due to changes in the horse’s
stabling, management, training, or diet.

If a serious problem does occur and some resolution cannot be

reached between the vendor and purchaser, buyers have little
recourse but to pursue legal action against the vendor. Most people
are unfamiliar with our legal system in addressing civil litigation and
do not realize the time and cost involved in pursuing a legal claim
above small claims court. If legal action is being contemplated,
purchasers should consult a lawyer and first determine the limit of
claims that may be pursued in small claims court in their jurisdiction.

Introduction 13
 Small claims courts have simplified rules and procedures and it is not
necessary to have a lawyer represent you in small claims courts. In
most provinces, the limit of a claim that may be addressed by a small
claims court is currently $25,000. Purchasers should check to see
what the limit is in their province.

If the claim is for more than the small claims court limit, the matter
must be pursued in a superior court. For those unfamiliar with
pursuing a suit in Canada, it should be made clear that legal expenses
will amount to many tens of thousands of dollars and it may take
many years before the matter will be heard in court. If you are
thinking about launching a suit for reversal of the sale, a litigation
lawyer should be consulted to determine the facts of the situation,
how the law would apply to your situation, and to discuss the costs
and time involved in the process. There are lawyers who specialize
in the law as it pertains to the purchase and sale of a horse. It may
be advisable to consult with one of these practitioners rather than a
lawyer who is unfamiliar with the law as it applies in these matters
and who may be unfamiliar with all the relevant case law.

There is an alternative to lengthy and costly litigation in the court

system, which is alternative dispute resolution (ADR). In the
agreement of purchase and sale, the parties can agree to use an
ADR process in the case of a dispute (see Appendices B and C). This
process is less expensive and will take less time than resorting to a
legal suit in the courts.

h) Afterword
Equestrian Canada has provided this Guide in hopes that it will be a
useful tool for people buying and selling horses. The Guide is meant
to make the buying and selling process more understandable and
less prone to complications. Members of Equestrian Canada should
follow these best practices and adhere to the highest ethical standards
whether selling a horse, or as an agent acting for the vendor.

Working with horses and riding is one of life’s most pleasurable and
rewarding activities. Equestrian Canada urges all of its members to
always keep the best interests of our equine partners at the forefront
of our thoughts. Readers should also reference the Code of Practice
for Equines June, 2013 and the Code of Ethics of Equestrian Canada
found at www.equestrian.ca.

Photo courtesy of
Dave Landry

14 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
Introduction 15
 Photo courtesy of
Dave Landry

Additional
Resources
American Association of Equine Practitioners, “What To Expect
When Owning a Horse”. Select “Find Equine Welfare Policies &
Papers”, then select “Educational Resources”, and then select “What
to Expect” at www.aaep.org.

Canadian Hanoverian Society, “Pre-Purchase Exam Standardized

x-ray Evaluation Methodology”. Select the “Marketplace” tab at
www.canadianhanoverians.com.

Thoroughbred Owners and Breeders Association (TOBA),”Sales

Integrity Program” www.salesintegrity.org.

16 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 Photo courtesy of
Muriel Burnley

The wind of heaven is that which blows between a horse’s ears,

an Arabic proverb

No hour of life is wasted that is spent in the saddle;

There is something about the outside of a horse that is good for

the inside of a man, quotes from Winston Churchill

Additional Resources 17
 Photo courtesy of
Dave Landry

18 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 Appendix A
Bill of Sale
....................................................... (“the Vendor”) is the owner of a ....................
year old, ..................................................... (description of horse) ........................
..................... (name of horse) Sired by, ..................................................................,
and out of Mare, ......................................... , foaled ...................... (MM/DD/YY)
(If registered with a breed society add): ...............................................................
is registered with the ...............................................................................................

E
Horse Association and has Life Number (Registration Number)
......................................................
PL
The Vendor represents that he/she has free and clear ownership of
.................................................................................... and has handed over the
registration papers (or ownership papers) to ......................................................
(“the Purchaser”).
M

The Vendor hereby agrees to sell and transfer ownership of ............................

..................................................... to the Purchaser for the sum of $  ....................
(plus GST/HST) and acknowledges payment in full has been made.
A

Optional if used:

The Vendor has used “the Agent” to assist in selling ...............................

EX

................................. and will pay the Agent a commission of .............. %

($ ......................... ) from the proceeds of sale.

Dated at ................................................. , Province, this ........................... day of

.................................................................. Month, Year.
.........................................................................................................................
Vendor

Appendix A: Bill of Sale 19

 Appendix B
Agreement of Purchase and Sale
This Agreement is made this ............................ day of ...................................... ,
20 .................... , between ....................................................................................... ,
hereinafter referred to as the Purchaser and ..................................................... ,
hereinafter referred to as the Vendor.

The parties hereby acknowledge that this agreement is made for the
purchase and sale of a horse described as follows in paragraph A below,
on the following terms and conditions as set forth herein.

E
Now therefore, for good and valuable consideration, receipt of which the
parties hereby acknowledge, the parties agree as follows:
PL
A. Description of the Horse
(Registered)Name: ............................................................................................
Registration (Life) Number: ............................................................................
Age: ....................................................................................................................
Color: .................................................................................................................
Breed: .................................................................................................................
M

Sex: .....................................................................................................................
Tattoo or Brand (if applicable): .........................................................................
Size: ....................................................................................................................
B. Consideration
A

In consideration of the sum of $ .......................... the Vendor agrees to sell and

the Purchaser agrees to buy the said horse described hereinabove in para-
graph A on the terms and conditions further set forth herein.
EX

C. Payment Terms
The purchase is for cash and the Purchaser agrees to pay $..............................
as a deposit on the .......................... day of ............................... , 20 .....................;
and the Purchaser further agrees to pay the balance due of $ ..........................
on or before the ................. day of ......................................, 20 .........................

D. Registration and Ownership Transfers upon confirmation of

payment in full as set forth in paragraph C above, and the Vendor agrees
to promptly execute all necessary papers and to take all necessary steps to
transfer ownership and registration of the animal to the Purchaser at no
cost to the Purchaser.

20 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 E. Vendor Warranties:
1. The Vendor warrants that he/she has clear title to said horse;
2. The Vendor makes no other warranties, express or implied, including the
warranties of fitness for a particular purpose except as may otherwise be
provided for in this agreement;
3. The Vendor warrants that he/she has used “the Agent” to assist in selling
the said horse and will pay the Agent a commission of
........................ % ($ ........................ ) from the proceeds of sale;
4. The Purchaser warrants that he/she has had the option to review the
condition and health of the horse, including any veterinarian examinations,
at the Purchaser’s expense. In the event the Purchaser has had the horse
examined by a licensed veterinarian as indicated in this paragraph E(3),
then that veterinarian examination shall be attached hereto as Exhibit A.

F. Risk of Loss
1. Pending delivery to the Purchaser, the Vendor assumes the risk of loss of

E
said horse, and upon delivery to the Purchaser, the Purchaser shall assume
the risk of loss.
2. In the event of the loss of the horse prior to delivery to the Purchaser, the
Vendor shall return to the Purchaser any deposit paid by the Purchaser.
PL
G. Default
Upon material breach of this agreement by one party the other party shall
have the option to terminate this agreement. On any breach, the other party
shall have the right to recover expenses and costs.
M

H. Alternative Dispute Resolution.

Should a dispute arise after the completion of the sale, the parties agree to
use Alternative Dispute Resolution to resolve the issue.

I. Law
A

This agreement shall be governed by the laws of the Province of ..................

J. Entire Agreement
EX

This agreement constitutes the entire agreement between the parties. Any
modifications or additions must be in writing and signed by both parties to
this agreement. No oral modifications will be considered part of this agree-
ment.

Dated at ......................................... , Province, this ................................... day of

......................................... Month, Year.

.............................................................. ..............................................................

Vendor Purchaser

Appendix B: Agreement of Purchase and Sale 21

 Appendix C
Agreement of Purchase and Sale
Between
...................................................................................................... (“the Purchaser”)
of
................................................................................................................... (Address)
And
........................................................................................................... (“the Vendor”)

E
of
................................................................................................................... (Address)
PL
.............................................................................. (“the Vendor”) is the owner of
a ................ year old, ......................................................... (description of horse)
......................................... (name of horse) Sired by ...................................... and
out of Mare ........................... , foaled ......................... Month Date, 20 ............. .
(If registered with a breed society add: ............................................................ is
registered with the ........................................................ Horse Association and
M

has Life Number (Registration Number) ......................................................... .

The Vendor represents that he/she has free and clear ownership of
................................................ (name of horse). The Purchaser acknowledges
the Vendor has handed over ................................................ (name of horse)
registration paper (or ownership papers).
A

The Purchaser hereby agrees to purchase ................................................

(name of horse) from the Vendor for $ ................................... (plus GST/HST).
The Vendor has used “the Agent” to assist in selling ........................................
(name of horse) and will pay the Agent a commission of ............................. %
EX

($ ................................................ ) from the proceeds of sale.

Radiographs taken during the veterinary pre-purchase exam taken by

Dr. .................................................... DVM on .....................................................
(Date) revealed the horse has abnormalities, more specifically
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
............................................................................. (exact description of the issue).

22 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 In the event these pre-existing condition(s) cause the horse to no longer be
suitable for hunter/jumper competitions up to the (describe level), as certi-
fied by a qualified veterinarian (to be agreed upon by both the Purchaser and
Vendor), the Vendor agrees to the following:

1) If such condition arise within a period of one year from the date of the
purchase, the Vendor will replace the horse with another suitable horse of
similar training, quality and equivalent cost as .............................................
(name of horse) acceptable to the Purchaser.
2) If such condition does not arise until during the second year from the date
of purchase, the Vendor will allow the Purchaser a credit of $ .......................
or 80% of the original purchase price towards the purchase price of any
new horse she buys from the Vendor.
3) If such condition does not arise until during the third year from the date of
purchase, the Vendor will allow the Purchaser a credit of $............................
or 60% of the original purchase price towards the purchase price of any
new horse she buys from the vendor.

E
The pre-purchase report issued by Dr. .................................................................
DVM forms an integral part of this agreement. The Purchaser further
agrees to make all radiographs that were taken during the pre-purchase
PL
exam available to the Vendor should the Purchaser make a claim under
this  agreement.

If the Vendor is not able to provide a replacement horse agreeable to the Pur-
chaser, the Purchaser will be able to return ..........................................................
.................................... (name of horse) to the Vendor upon 30 days notice and
the Vendor will promptly refund to the Purchaser that portion of the pur-
M

chase price depending upon the date of return. The costs of any such return
will be for the account of the Purchaser.

This warranty expires on ........................................................................... (Date)

Should the Purchaser wish to exchange ..............................................................
A

(name of horse) for a horse at a higher price, he/she will have to reimburse
the Vendor for the difference at the time of exchange. Should the parties to
this agreement be unable to agree on the market value of the replacement
horse, an appraisal of the replacement horse by a neutral third party to be
EX

agreed upon by both parties will be binding for both parties.

Alternative Dispute Resolution

Should a dispute arise after the completion of the sale, the parties agree to
use Alternative Dispute Resolution to resolve the issue.

Dated at ..................... , Province, this ........ day of ....................... Month, Year.

.............................................................. ..............................................................

Vendor Purchaser

Appendix C : Agreement of Purchase and Sale 23

 Appendix D
Buyer’s Statement
Horse: .........................
This statement must be signed by the ID #: ............................
buyer or authorized agent of the buyer

Name: .......................................................................................................................
City: .................................................................................... Province.....................
Postal Code: ................................................
Phones/Home: ............................................ Cell: ..................................................
Email: ............................................................

E
1. How do you intend to use this horse (i.e. type of activity, level of activity,
and time frame)? .....................................................................................................
.....................................................................................................................................
PL
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................

2. Describe the intended user’s age, ability and experience ...........................

.....................................................................................................................................
M

.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
A

3. How long have you been acquainted with this horse? ....................................
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
EX

.....................................................................................................................................

4. Have you tried out this horse? Describe how: .................................................

.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................
.....................................................................................................................................

24 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 5. How important are the following traits?

Very Important Important Not Important

Appearance

Performance

Blemishes

Temperament

6. How do you rate this horse’s suitability for its intended use?

Unique Adequate Exceptional

7. What type of care will this horse receive?

E
Intensive (continual care & supervision)
PL
Average (stabled daily for feeding)

Casual (on pasture most of the time)

As the potential horse buyer, I understand that this pre-purchase exam does
not warrant this horse’s suitability for the purpose intended, and is limited
by my statements and instructions on the depth of the exam desired, tests I
M

requested, and the fee I agreed to pay.

Date: ................................................

Buyer’s signature: ....................................................................................................

A
EX

Appendix D: Buyers Statement 25

 Appendix E
Sales Agent Agreement
Between
..................................................................................................... (“the Purchaser”)
of
................................................................................................................... (Address)
And
............................................................................................................. (“the Agent”)

E
of
................................................................................................................... (Address)
PL
Whereas .......................................................................................... is the owner of
..................................................................................... (provide full description of
the horse), a ..................... year old, .........................................................................
description of horse, registered with the .............................................................
Association, registration number .................................................................. and
M

the Owner hereby engages ...................................................................... to act as

exclusive Agent to sell ..............................................................................................
The asking price for the horse is $ ..............................................., and may be
changed upon mutual agreement of the Owner and the Agent. Upon
closing of the sale of the horse the Agent will be paid a commission from
A

the proceeds of the sale of ....................... % of the selling price plus applicable
taxes.

The Owner agrees:

EX

a) To refer all inquiries about the horse to the Agent;

b) To keep the horse fit for sale either by riding the horse himself or paying for
training;
c) To pay for boarding of the horse, lessons, training and coaching, vet and
farrier costs, show and other competition fees as may be incurred;
d) He is the sole owner of the horse and has free and clear title;
e) That if he/she terminates this agreement the expenses listed in b) below will
be paid to the Agent forthwith;

26 Equestrian Canada's Best Practices Guide for Buying and Selling a Horse
 f ) To pay all costs owed to the Agent upon the termination of this
agreement before taking possession of the horse;
g) To enter into a purchase agreement directly with the buyer, accept payment
and to pay the Agent the selling commission and any applicable taxes
immediately after receiving payment.

The Agent agrees:

a) The Agent agrees to keep the horse at ................................................. and the

horse will not be moved without the prior consent of the Owner;
b) The Agent agrees to market the horse through his/her website, advertise
the horse on suitable internet sites, take a video of the horse and photos,
groom the horse for viewings, ride or present the horse to potential buyers.
The Agent pays for these costs during the term of this agreement, but is the

E
agreement is terminated by the Agent these costs will not be paid by the
Owner;
c) Provide the buyer of the horse with a purchase agreement;
PL
d) Under no circumstances will a commission be payable after the termination
of this agreement unless the horse is subsequently sold to a party sourced
by the Agent and to whom the agent showed the horse;
e) The Agent can accept any unconditional offer to buy the horse, as long as
the offer is at or above the asking price;
M

f ) For conditional offers or offers below the asking price, the Agent must
convey all such offers to the Owner. The Owner and Agent must mutually
agree on the terms of any counteroffer that is conditional or below the
asking price;
A

g) The Owner will accept payment for the horse and promptly pay the Agent
the amount owing to the Agent.

This agreement will expire on Date ......................................... unless an exten-

EX

sion is agreed to in writing by both parties. This agreement may be termi-

nated by the Owner or the Agent at any time upon three days written notice.

Dated at .................................... , Province ..............., this ....................... day of

......................................... Month, Year.

.............................................................. .................................................................
Vendor Purchaser

Appendix E : Sales Agent Agreement 27

 BRING THEM BACK TO
THEIR FORMER GLORY
BY MANAGING PPID

TO LEARN MORE ABOUT PPID PLEASE TALK TO YOUR VETERINARIAN

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