Deposit prior to purchase

[Dressage (Pea)Nut]

I didn't know where else to post this, but I'm sure one of you lovely ladies (or gentlemen!) can give me some advice. I have found a lovely WelshXArab mare for sale, and the seller has agreed to take payments on her, as long as I put a deposit down on her (this works for me, as I can't take the mare until September 1st anyway). However, she hasn't specified how much for the deposit. What is a reasonable amount/percentage for a deposit? If it helps, I would be giving her the deposit, along with post-dated cheques for the balance. Thanks!

[amdfarm]

For mine, I ask for 20% non-refundable.

Good luck w/ your new mare.

[Sunnydays]

Be sure you have a written, signed Agreement of sale, laying out terms, before money changes hands. Easier on both sides to see the agreement in writing.:)

[pintopiaffe]

20% non-refundable takes the horse off the market for me.

BUT--I've refunded the 2x the buyer has had issues come up. ;)

In a "lease to own" (which is what I use for payments) the down payment or first payment should be spelled right out, along with the monthly payments, and what happens to the payment money should something go catastrophically wrong on either party's side of the deal... whether the horse goes lame or god forbid dies, or there is a family illness or car wreck or loss of job or... life, ya know?

Mine specifies that in the case of default, no payments made are due to be returned. I have had two default over the years, both times I have returned at least the original agreed purchase price. It's going to completely depend on the seller & your relationship to them.

[mirrabook]

We have often financed purchases. I like the idea of 20% deposit ... up until now we have only asked the 10% which we require on any purchase regardless of situation. It is refundable on a problem on pre-purchase, but takes the horse off the market while that is happening.


get a contract that sets out the purchase price, deposit, terms and payment amounts, plus at what point interest becomes due. Also terms in case of default.
we insist on an insurance policy on the horse, paid by purchaser, payable to us in case of loss and our agreement specifies we would return to the purchaser any amount over the balance of purchase price owed to us and what they had already paid.
this insurance policy must include major medical ... and that one we have needed
our contract specifies that in case of default, even where the horse is returned, no refund of money is due or owed
we also hold the registration papers and do not transfer them until fully paid for ... sadly, the one time I did transfer papers with only 2 payments left to deposit post dated cheques, suddenly the cheques bounced and all attempts of e-mail / bank transfers strangely failed as well. I still have the papers and the foal is now 3 years of age :no:


Good luck with your purchase. :D A properly prepared contract protects both parties. :)