Buyback Clause?

[toadie]

I'm selling a show horse that I truely love. He's a registered TB, but never raced. I'm not naive enough to think that anything I put in writing is a guarantee, but have any of you sold a horse with a buyback clause, or retirement offer? Like Laurierace's thread, I hope that I won't lose track of him. Can you write whatever you want on the back of the JC papers? I'll verbally tell the new owner that I want 1st right of refusal in case of resell, but chances of me being able to afford to buy him back are slim. If the new owner wants to sell him because she's going to college, he'll still be young enough to continue his show career, so baring any soundness issues, he won't be cheap. I have the space to keep him should an injury render him unrideable, but I know that some people just don't believe you're serious when you tell them you'll take them back under any circumstances.
Plz don't ask why I'm selling him, if I love him so much. It's a painful decision.

[BJ]

I'm selling a show horse that I truely love. He's a registered TB, but never raced. I'm not naive enough to think that anything I put in writing is a guarantee, but have any of you sold a horse with a buyback clause, or retirement offer? Like Laurierace's thread, I hope that I won't lose track of him. Can you write whatever you want on the back of the JC papers? I'll verbally tell the new owner that I want 1st right of refusal in case of resell, but chances of me being able to afford to buy him back are slim. If the new owner wants to sell him because she's going to college, he'll still be young enough to continue his show career, so baring any soundness issues, he won't be cheap. I have the space to keep him should an injury render him unrideable, but I know that some people just don't believe you're serious when you tell them you'll take them back under any circumstances.
Plz don't ask why I'm selling him, if I love him so much. It's a painful decision.

I would absolutely put a first right of refusal clause IN WRITING. Also require that they give you some legal ID (and write it on your copy of the contract) and a requirement that they keep you informed if they move.

The first right of refusal clause keeps the contract binding, enforceable and on-going. So, it is only natural, that you should be able to know how to find them. The contract would only end if they offered you the horse and you declined to purchase him.

[Heidilady]

I assume the insistence that a person be informed should the new owners move would include some sort of clause that the horse's ownership reverts back to you if they fail to do so?

I might require references (independent of family) and some sort of indication that a vet has a working relationship with them. And if they won't be boarded at someone's stable there ought to be another horse or herd animal on the property (not one with horns) b/c the herd mentality makes them happier not being alone.

The real question is, after a list is made of requirements to put into a contract, is it still easy for the horse to end up at a killer auction or being neglected? If yes, there are other things that need to be looked at. I'm an idealist but it's sad that other people can hurt these amazing animals so we gotta be careful.

[summerhorse]

Get it in writing! Make a legal notarized contract of sale specifying first refusal AND that if they sell the horse to someone else (if you can't buy it) they put the same clause in their contract with them (that you get first refusal) and that if the horse should develop some problem that makes it unrideable that you will pay going meat rate (or if no slaughter by then, hey one can dream) that the horse be donated either to you or a approved rescue (list some) not be sold at auction or privately for meat price or less.

I'd also microchip the horse and have it registered in your name but don't transfer it. Then if the horse should end up in a rescue or a place where they actually check them it will come back to you.

And then keep in touch, call once in a while, write notes, send a Xmas card. Let them know you are interested in how he is doing.

[DreamersPrincess]

I've had questions about these clauses (like how to get the buyer to take is seriously)...

One idea that I had, but haven't run by anyone able to say if it is enforcable or not, was to:
(a) Microchip the horse with permanent registry in my name (like mentioned above) with web site reference.
(b) Have a clause that I get first right of refusal and that the horse can never be sold at auction
(c) Have a separate, signed clause that if the horse ends up offered at a auction house (doesn't have to actually sell), at a slaughter facility or at a facility that is convicted of animal cruelty/neglect then the buyer agrees to pay a set amount (think of it as a significant punitive fine). Buyer-A continues to be accountable under the clause until the horse is bought back or a subsequent buyer signs the same contract clause and 'registers it with me' to release them. So they are accountable, until they get confirmation from me that a subsequent buyer has accepted responsiblity.

That way, if the horse is sold without me getting first refusal and somewhere down the line ends up at a slaughter facility, Buyer-A is STILL responsible and will have to pay the penalty fee because they didn't have the next owner sign the contract to release them.

Not sure how you'd write that up (or if it could be enforcable), but it would be easy to maintain the current version of the contract/clause on a web site for download and to enable current owners to verify their status on line (actually, you could keep their whole original contract on line so they always have a copy to refer to) and let them do address changes and submit photos, accomplishments, current barn names, vets, etc.

I also thought about sending out a birthday gift to the horse each year as an incentive to get the buyer to maintain their current address with me (and let them know I'm seriously interested in the horse's welfare). Maybe a gift certificate for where they buy feed from or for their current vet (like the cost of annual vacines), maybe a personalized hay bag. Something big enough to encourage them to keep their address current and maybe give me legit contacts to 'check up' on the horse. To me, its worth it to blow about what I'd spend for a night out on the town to have the peace of mind knowing the horse is not at risk and knowing what has happened to him.

Now, I don't plan to be selling a lot of horses. But a program like this in a breeding operation would certainly get them a lot of word of mouth advertisement, especially if the items have your farm's website on it. You might have to skip the personalization part, but new buyers might take that extra look at your livestock just because they think they'll get cool stuff each year.

Kami

[toadie]

Thanks you guys. The microchip is a good idea I hadn't thought of. I will send something in writing, but thought by putting it on the back of his JC papers that would keep them from just throwing the agreement away. I guess since he never raced (nor will he), I can write whatever I want on it.
Very helpful, thx again!