Tuesday, November 16, 2010
Monday, November 15, 2010
1. Avoid Undisclosed Dual Agency Problems. Sellers should enter into written agreements with their consignors or other agents, and agree upon commissions, reserve prices, and how disputes will be handled. You should also get an agreement from the consignor that all commissions will be fully disclosed to you. If a bloodstock agent, trainer, or someone else acting on behalf of a buyer approaches you or your consignor and asks for a commission, do not pay it.
2. Avoid Turnback. The prospective buyer has the right to ask the consignor anything relative to the horse’s condition and ownership. Be truthful and straightforward in your answers to avoid problems. Read the Conditions of Sale with your consignor. If a buyer purchases your horse and it does not pass the post-sale veterinary exam within the give time frame (24 or 48 hours), if the problem with the horse one of the conditions warrantied in the Conditions of Sale, the buyer has the right to return the horse to you (otherwise known as “turnback”), and you will not be able to keep the sales proceeds.
To avoid turnback, it is advisable to negotiate with the buyer and reach a mutually-acceptable agreement. One strategy is to reduce the price of the horse, or offer to pay for surgery if the problem is operable. A consignor might also offer to give the buyer some compensation for the risk of surgery.
3. Bidding on Your Own Horse. Although some people view consigned bidding as unethical, the rules and the law clearly permit it. The practice of bidding on your own horse has also been approved by the Sales Integrity Program. Note, however that if you bid on your own horse and are the final bidder, you will remain the owner of the horse but still owe a commission to the sales company (generally 5% of the final bid).
Posted by The Weekend Cutter at 4:13 PM
Friday, November 12, 2010
Insuring a Sale Horse
When purchasing a horse from an auction, the buyer immediately becomes the owner when the gavel falls. Conni Peters of Roger Peters Livestonck Insurer recommends you insure your investment BEFORE loading it into the trailer.
"Once your horse is in transit", says Conni "you can not insure it mid-trip" The coverage is full mortality and theft, which insures your horse from death or humane destruction due to any health reasons, or accidental reasons such as colic, broken limb, trailer accident or theft. You wouldn't buy a $10,000 car and drive off the lot without coverage. Buying a horse is the same. Accredited sale horses are vet checked prior to going thru the sale ring, any issues found by the veterinarian will be disclosed prior to the sale. Any pre-existing conditions will have a possible exclusion, depending on exactly what they are.
"Insuring your horse is a simple phone call away" Conni ads, " we will place a verbal binder on the horse over the phone, mail, fax or email you an application. Then all you need to do is complete the application and mail it to our office with your annual premium within 7 days of the date of binder"
Roger Peters Insurance has insured horses for over 35 years, and can be reached Monday - Friday at 1.800.229.8664 or 712.253.3842 weekends.
Posted by The Weekend Cutter at 6:25 PM