Horse Purchase Contract: What must be in it + free template

Why a written contract is essential

Verbal horse purchase contracts are legally valid — but they have three major drawbacks in practice:

• No evidence for later defects
• Warranty applies in an unclear way (24 months by default)
• Tax and insurance don't recognise the sale without a document

For international sales the contract is mandatory for transport, customs and insurance. A professional transporter will not move without one.

Mandatory items

1. Parties

• Full name, address, phone, email of seller and buyer
• For companies: trade name, director, registry number
• Attach ID copies (especially for international sales)

2. Horse details

• Horse's name
• UELN (from the equine passport)
• Year of birth, breed, sex, colour, markings
• Height
• Pedigree (sire × damsire)
• Brand and microchip number

3. Price and payment terms

• Exact price in EUR (separate gross/net clearly)
• Deposit: amount, timing, account
• Balance: timing, method (bank transfer recommended, never cash only)
• Transfer of ownership: only upon full payment

4. Handover

• Date and place of handover
• Condition at handover (hooves, shoes, rugs, headcollar)
• Accessories included (saddle, bridle, rugs, etc.)

5. Passport and papers

• The equine passport MUST be handed over (legal requirement)
• Original ownership / pedigree certificate
• Vaccination log, worming records, vet check report if relevant

Important optional clauses

Vet check clause

Who pays? What happens with a class 3+ finding? Recommendation: "This contract is subject to a pre-purchase exam without findings of class 4 or higher. In case of a class 3 finding the buyer has a right of withdrawal within 7 days."

Test-ride clause

Before contract signature: liability disclaimer for the buyer. Buyer rides at own risk, must have valid rider insurance.

Deposit & reservation fee

Common: 10–20 % deposit on signing. Specify in writing: what happens on withdrawal? Forfeit or refund?

Severability clause

Standard wording: "Should any provision of this contract be invalid, the remaining provisions remain unaffected."

Warranty — the key question

Private sale

Private sellers can fully exclude warranty: "This sale is made under the exclusion of any warranty." Important: deliberate concealment (e.g. of an illness) remains criminal and renders the contract voidable.

Professional sale to consumer

For commercial horse dealers selling to private buyers, warranty cannot be fully excluded. Reduction to 12 months is possible. In the first 6 months reverse burden of proof applies — the seller must prove the horse was healthy at handover.

The 5 most common pitfalls

1. Handover without money — never hand over the passport and horse before the money is in your account (not "supposedly transferred").
2. Cash without receipt — above €10,000 problematic in many countries (anti-money-laundering).
3. Verbal promises — "calm, easy to ride" must be in the contract or it doesn't apply.
4. Insurance forgotten — buyer must have liability insurance active on handover day.
5. International sale without TRACES — without TRACES entry and health certificate the horse cannot cross the border.

Free template

We provide a checked horse purchase contract template in 4 languages (DE / EN / ES / FR) to our customers free of charge. It covers private and professional sale, includes vet check clauses and was reviewed by a German equine law attorney.

→ Request the template here (free by email within 24 h)