As a breeder I welcome these changes. I think it will makes sales more open for both the seller and buyer. I hope it will eliminate the "sold the horse for 3x but told the seller it was 1/2x" deals and the " I spoke to the sister of the friend of the trainer of the client who bought your horse so I need my 10% commission" demands. I don't know if it will eliminate the failure to transmit offers "We told the seller the horse was worth $x for the horse. were asking $5x for the horse, received an offer of $3x for the horse but didn't tell the seller." I also don't know how it will affect interstate and international sales but in general if the contract was signed in California California law applies.
I think this should actually make buyers more comfortable about California Equine purchases. What do you think?
These laws are long over due in all states. It always amazes me that anyone buys or sells a horse without a written contract. It also boggles my mind that people are paying commissions to individuals who had no contractual relationship with either buyer or seller or in some instances had one with both.
If you want to see someone demanding a commission run for the hills - demand their SS# and issue them a 1099 (which is required by law). I have to believe many of those with their hand out - don't report the income.
Summit Sporthorses Ltd. Inc.
"Breeding Competition Partners & Lifelong Friends"
I would be curious to hear from a Calif lawyer about the applicability of this statute to the sales of horses outside of racing. This section is actually within Chapter 4 of the California Business and Professions Code titled "Horse Racing".
Im not a lawyer....
But the law reads any type/breed of horse that is used for racing or showing is covered - and thus applies to any individual horse used for racing or showing. It specifically states A HORSE OF ANY BREED that is used for showing or racing is subject to this law.
The law doesn't address or mention sales of horses as pets/companion animals/just used for "fun" aka pleasure horses. That is probably an interesting loophole that will come up. As in - some one sells a horse as a trail horse, the buyer gets unhappy and tries to come back and sue under this law because the horse was shown one time some where and they argue should be considered a "show horse".
Or I can see sellers wanting to list the horse on the contract/paperwork as being sold as a companion animal vs a show horse in order to be exempt from this law.
At the webinar they stated that it pretty much covers all horses sold in California. I suppose if you had an animal of unknown breeding that you had as a pasture ornament and your agent was selling it as a pasture ornament you might not have to worry about it though I doubt you would be talking about much money either.
The law does not appear to cover in-utero sales IF the sales are completed prior to the actual birth. Unfortunately it does not cover failure to communicate offers made by a third party. Real estate agents are required to give all offers to their clients. The key is the offer has to be in writing.
How this all plays out will of course be determined by how the court interprets things. Stay tuned.