Forida Implements New Requirements Relating To The Sale and Purchase of Horses (Article from the Equine Law & Business Letter, November-December 2008)

     Earlier this year, Florida implemented new rules that will change the way the horse industry does business.  By basically redefining what constitutes "deception" in a horse sales transaction, this new "consumer friendly" law imposes trappy requirements on the parties to a horse sale or lease - agents included.

     Florida now joins Kentucky on the new wave to regulate the horse industry "from the outside".  For years, horse industry leaders and critics have warned that if the horse industry didn't clean up its act, that thegovernment would get involved and "do it for us".  Legislation similar to Florida's is being considered in other states, including Virginia.

     This "sales integrity" movement aims to stamp out fraud by requiring full disclosure in horse transactions.  The idea is that horse transactions can, and should, be documented in the same way as real estate transactions.

Most of the requirements imposed by Florida apply to transactions involving dual agency.  But there are significant new requirements that apply to any transaction - and it will be easier to run afoul of the requirements than it will be for the average equine professional to comply.  For example:

(1)  The law arguably applies not only to sales be to leases as well.

(2)  There must be a written bill of sale.

(3)  The bill of sale has to contain very specific information, including a laundry list of eight things that are spelled out in the law, and:

(4)  Any agent's commission (that is paid out of sale proceeds) in excess of $500 must be disclosed to both the buyer and seller, in writing AND the principal for whom the agent is acting must consent in writing to the payment.