What is an Equine Escrow Service?
We all know that purchasing a horse can be fraught with costly problems. Buyers and sellers rarely enter into a transaction with ill intent, but sometimes things go awry. It is important to understand how and why the escrow process works for buyers and sellers.
What Went Wrong
The buyer pays but the seller refuses to deliver the horse, or the horse arrives lame, or the wrong horse is delivered, or despite the seller’s guarantees, the quality and fitness of the horse are not as promised. Maybe the seller delivers the horse, but the buyer decides not to pay, or decides to pay less than agreed.
The European Factor
Purchasing a horse overseas can be especially tricky. Foreign laws generally govern the transaction, and if a problem does arise, it must be dealt with in the originating country. Imagine that you purchase a horse overseas and send full payment, but the seller refuses to send the horse until you pay additional training fees, which were not part of the Sales Contract. Because the seller now has control of the horse and your money, your only recourse is to file a lawsuit in another country.
So Go Escrow
The use of an escrow service can protect both the buyer and the seller against these and other potential problems. An escrow account will hold sales proceeds and commissions until the terms of the Sales Contract have been carried out. The money will not be transferred into the seller’s hands until the correct horse is delivered in the agreed-upon condition.
In addition, a simple escrow account is a way of ensuring that both parties are fully aware of the price being paid for the horse. These accounts are an effective, affordable, and transparent way of making sure both parties are satisfied with the delivery of the horse and the delivery of the sales price.
How It Works
Hey & Hey Attorneys At Law offer a unique “Horse Ownership Transfer Service™” (HOTS) to anyone involved in the purchase or sale of a horse. A structured six-step escrow process that protects both parties and ensures the transaction goes smoothly for all involved. Contact Us for more information.
“Many attorneys include equine law as a sidenote to their practice, but Hey & Hey Attorneys at Law specializes in the full range of equine law services. We also have nearly 30 years of experience in the horse industry.”