Questions about lease to own

[Valerie]

I have someone interested in doing a "lease to own" one of my mares.

I really am just not sure, I have done some research and found lease forms online but not many for Lease to own.......

For those that have done this, what should I make sure happens if I go through with this?

Do I have a upfront down payment...and then monthly payment?

Also, guessing but do you insist on having the horse insured in the event of a loss or injury?

These are just a few of things off the top of my head.

Would love to know the good and bad experiences from those that have done this.

I have never leased anything, I buy things outright so just not sure. I know she would go to a great home and would be shown, but I also want to protect myself.

Thanks for any input.

Valerie

 

[StarRidgeAcres]

As with any type of deal, its all about the contract. If it can happen, it will. And your contract should cover each scenario you can think of.

The important points are insurance, vet care, purpose of the lease (breeding, showing) who pays trainers' fees, what happens in the case of default, etc. As long as you reserve your rights as the owner until paid in full you should be ok. Just make sure you know its a good home and the mare will be cared for in the manner you expect.

It can be a win-win if done correctly. Good luck!

 

[Carolyn R]

You may be able to find more info if you search ownership by payments.

Yes, you should expect X amount down (typically anywhere from 20-50% down, all based on sellers preference)

Yes, an excellant contract is a must to protect you (and the buyer), one that spells out vetcare, hoof care, dental care, if the horse is to not be bred until it is paid in full, key point for stallions, papers can be held until paid in full(just send photocopies if they will be showing the horse.

It doesn't hurt to state what reprocussions should occur if the potential owner defaults on payments (ex. if payment is overdue in excess of 14 days, 21 days, (whatever timeframe)and no documented/signed arrangements have been made in regards to granting an extension on the stated animal, any and all deposits shall be forfieted and horse shall be returned to seller).

Insurance is an excellant idea, it may not be cost effective on an inexpensive horse, but none the less, it is an excellant idea, with you as the beneficiary, the horse being stated as "ownership by payments" which can then be changed to the new owner as beneficiary upon payment in full, the new owner just needs to call up and send a photocopy of contract/reciept stating paid in full.

If something happens to the horse, the vet reimbursements go to the owner to be, if a mortality claim should have to be submitted, the money would come to you and you are responsible for reimbursing the portion that has been paid to you, state this in your contract (in the case of death of the stated animal, potential buyer will be reimbursed payments already recieved once mortality benefit has been paid out by insurance).

I have never had an issue buying or selling a horse on contract, but quite honestly, if I am not comfortable with a sale, regardless of me being on the buying or selling end, the sale just doesn't happen.

Don't be afraid to step up and vocalize what you expect as a seller selling on lease or contract, afterall, it is your horse!

 

[alphahorses]

I have been both the lessee and the leaser and it has worked out well so far.

You are really just selling the horse on a payment plan, with the added bonus to the buyer that they can lease the horse through the registry so that they can show or breed it while they are paying it off.

But as people have already pointed out, have a good contract and get references. At least get a vet reference. If the horse is going very far and I don't know the person, I also like to get a reference from 1 or 2 people from whom they have purchased on terms in the past.

 

[Valerie]

Thank you for the great input and advice ladies, I truly appreciate it!

 

[Carolyn R]

Thank you for the great input and advice ladies, I truly appreciate it!

Just wanted to point out that the owner to be can still show the horse if the horse is sold on payments without it going through a lease. Any winnings would be announced as the horse's name, the owners name and that the horse was shown by such and such. The owner to be just needs photo copies of the paperwork.

 

[MountainMeadows]

The scary thing about a lease for breeding is the possibility of the mare "crashing" during the foaling/pregnancy and thereby rendering her unsuitable for future breeding. This is not the kind of thing that anyone can predict, and insurance is not likely to cover her loss of value. Of course a crash can happen to anyone, and this is the risk we take as breeders, but in a lease situation, should this happen it could be possible that the person would return the horse to the owner in an un-breedable condition and therefor the person would now have to deal with how to re-home, or keep the horse for the rest of it's life.

Not meant to be a wet blanket - but not all folks SHOULD be breeding - and we all know how often a newbie gets a mini and the next thing you know they want to have a baby -- will that person go to all the time, trouble and expense to ensure the best outcome for the mare - IMO it is a 24/7 job and requires monitoring 24/7? In the event of a dystocia will that person be willing to buy the mare outright?

Just a few thoughts to throw out in the event the person requesting to lease is interested in leasing to breed the mare.

Stacy