In an installment payment arrangement, the seller and buyer agree that the purchase price can be satisfied through a series of payments (often called installments) spread out over months and sometimes years. While this can be beneficial for the buyer, there are many precautions the seller must take to ensure they receive full payment of the horse. There are too many cases out there of the seller awaiting payment for the animal long after they are due – the problem becomes worse when there is no written contract and if the seller parts with possession before the horse is paid for.
Below are some tips on avoiding installment sale disputes:
- Proceed cautiously. If you are selling a horse on an installment payment arrangement, you must have the mindset where you’re bank. Banks would never extend credit to anyone without first investigating the buyer and his or her creditworthiness, and therefore you shouldn’t either.
- Get it in writing. The installment sale arrangement deserves a good written contract, which is where a San Diego County horse lawyer. This written agreement not only lists the installment payments and their due dates, but should cover repossession rights in a legally sufficient way.
- Don’t give up possession. It’s important that you do not give up your rights to the horse before the animal is paid for in its entirety. Consider holding the horse’s registration papers until all payments clear, particularly if this horse’s value is retained in breeding, racing, or showing purposes.
Good advance planning and carefully written contracts can make an installment sale transaction run smoothly for everyone involved. A San Diego County horse lawyer can help avoid installment payment disputes, which include writing up a complete and detailed contract. While it might cost a little to have a contract drawn up by a professional, you can rest easy knowing your rights are covered within the contract and you may end up saving a lot of money and frustration in the long run if you do happen to run into a dispute.