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Right of First Refusal

16K views 62 replies 29 participants last post by  mangomelon 
#1 ·
I notice with a lot of animal ads (I'm a Craigslist addict) people seem to want the right of first refusal should you no longer want the animal you bought/got from them. I think this is silly and idealistic for a number of reasons, and since this is a horse forum, I'll stick to horses.

For the most part, I'm going to put more into a horse's value than it was how I got it. To be expected to return it for free or the cost I paid for it isn't fair, and I would feel weird calling up the previous owner and saying they can have the horse back for the new sale price. It would feel like a ransom or something.

I have always been of the opinion that once I purchase an animal or it sets foot on my property, it is mine to do with as I wish, as long as it is cared for. I don't mind sending the occasional update but I don't like feeling pressured or obligated. So if I want to sell them off to a friend or someone offers me a big chunk of money or the horse just didn't work out, I'm going to do so.

Also, as for the people on Craigslist, most of them seem to be in a horse must be gone by x date! State of mind. I've seen horses kept in neighborhoods with 2 strands of barb wire and no shelter to speak of, so why on earth would I send it back there, just because of a sentimental previous owner who didn't have the means for proper care anyway?

Some of these ads even come with threats! If you take my horse and resell it I will call the cops or report it stolen! I don't have a bill of sale on some of my horses but I have shot records and receipts for feed and care, just in case. I'm not even sure how you'd go about calling the police for that. Help, I gave away/sold my horse and now they won't give it back! I know for more professional type places, like rescues, can sometimes come with a contract saying the horse has to come back, but that's also why I don't adopt horses.

So, what do you guys think of rights of first refusal? Do you ask for them? Abide by them? Ever been called out on it? I can answer no to all three, myself.
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#2 ·
Some of these ads even come with threats! If you take my horse and resell it I will call the cops or report it stolen! I don't have a bill of sale on some of my horses but I have shot records and receipts for feed and care, just in case. I'm not even sure how you'd go about calling the police for that. Help, I gave away/sold my horse and now they won't give it back! I know for more professional type places, like rescues, can sometimes come with a contract saying the horse has to come back, but that's also why I don't adopt horses.

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I would never buy a horse from someone with that on the ad. Right of first refusal usually won't hold up. You give up your rights to a horse when you sell it. Its more of a suggestion of good measure then a demand.
 
#3 ·
if its in your contract for the sale then it will hold up.

However I see it as this. If someone has that in there and everything seems okay with the horse and owner then I have no problem because if I get rid of it they are simply wanting to ensure that their old horse doesn't end up at a slaughterhouse because you don't want them anymore. its sometimes silly but if I know and trust the person I would never have a problem offering to sell back to them upon my choosing to sell.
 
#4 · (Edited)
First rights of refusal aren't legally binding. They're only useful if the person who bought the horse is honest enough to actually call the previous owner and offer them the horse again.

The current owner isn't required to offer the horse back to the previous owner for the amount it was sold to them. You can put whatever sale price on the animal you want. If you're polite and offer the previous owner the chance to buy it first, that doesn't mean they get it for a discount. They can either pay the price you're asking, or turn you down.

People who put threats or unreasonable demands in their ads/contracts have no legal leg on which to stand. If they were so concerned about the animal and love it so very much, they shouldn't be selling it in the first place. Another demand that really grinds my gears is a 'forever home'. Oh really? YOU can't or won't offer the animal a forever home, but you expect someone else to do something you weren't willing to provide? Cry me a river.

I will not let you come and view my property for your 'approval'. You will get vet and farrier references, as well as references from other horse people if you ask. You will NOT come to my property, nor expect me to let you see Snookums once I own him.

If you can't live by my terms, don't sell me your horse. You don't get to come and drive a car you've sold to me, so what makes you think a horse is any different? You sold it and now it's mine. You have NO say in what I do or don't do with it.
 
#5 ·
First right of refusal is subjective.

The way I see it is that you let them know you're selling and your price for the animal. If they say no, then you can sell to whoever and not have an issue. First right of refusal has nothing to do with the price in which you bought the animal. Period.

Others think that you'll sell back for the same price you bought and throw a fit. BUT, if you look into the meaning of the words "First right to refusal", it says nothing but the fact that you have to offer them the horse for whatever you're selling for before you offer to sell to someone else. That's it, cut and dry explanation.
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#6 ·
I tend to avoid ads/horses with that in the title. I've actually had someone ask me what I had to hide if I didn't really like the idea of them checking up on the horse. If you have seen my other threads, my horses are all a good weight and groomed, with the exception of the ponies that I bought in worse condition than they are now, but still aren't great. Someone I got a horse from emailed me the other day and said they drove by and didn't see the horse I bought in the pasture and wanted to know where she was. Uhh... creepy! She is in the pasture, you just can't see every inch of my property from the fence, and I like to keep it that way. There was no contract or anything to make it their business.

Anyway, the forever home thing also bugs me for all the reasons you said, Speed Racer. I would say a horse is with one person for a few years at a time, for the average person. The longest I've ever had a horse was about 5 years, my first and second horses. When they no longer become suitable for my needs or wants, they will go on to someone else. Maybe they're getting older and better suited to a lighter or beginner rider raider that isn't looking to go fast or do much, maybe I switch disciplines, maybe I can't afford as many as I have or in my case, I want to be able to save up for a dream horse, so I'll sell off one or two eventually to help with that. I don't have any false ideals about keeping an animal for 30 years, much less a pasture full of them. Life is too unpredictable for that.
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#7 ·
Just like SR said, right of first refusal doesn't mean free our the same price you paid.

I signed a contact with a right of first refusal clause and if I ever sell the horse, I intend to honor it. I would not, however, be offering the horse at the same price I paid.

I paid $500 for a very green horse that had basically been backed a few times and potentially had a bucking problem.

I've put almost a thousand dollars into him so far for training, and plan on putting a lot more until I have a finished dressage horse.
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#8 ·
I had "Right of First Refusal" on some horses I bought. Its really not that big of a problem to call the previous owner up and inform them that you're selling. If anything, you might get a quicker sale if they say yes.

Previous owners who make demands need a reality check. Once they sign that bill of sale, they are no longer in control of that horse. I wouldn't buy a horse who's owner was that posessive/controlling. Theres a big possibility they'll cause problems down the road.
 
#11 ·
Your post doesn't make sense. YOu had it on some of the horses you have bought, but you wouldn't buy a horse from someone that controlling? :?

I sold one of mine with one, mainly because the woman who bought him had borderline resources financially, and I knew that it would not take much to tip the scales and my horse (who had been neglected by a previous owner) could end up who knows where. My purpose was not that I wanted the horse back, but I wanted to make sure he never got into a bad situation again. The new owner also saw it as a comfort, since she knew she could barely afford him, and that I would take him back if need be. That was 15 years ago, and they are still doing fine. She adores him, and thankfully she has not asked me to take him back. It was a great match for both. I do understand tho, that I had no real legal recourse if she decided to sell him.
 
#9 ·
I sold a horse with a contract, payment contract and right of first refusal. Why? I had owned the horse for 9 years but no longer had use for her. She is a finished youth barrel horse. I didn't add the price but I hope it's the same, because if and she most likely will be sold again I will buy her back. I know her new owners, only reason I sold her to them so hopefully they call me first.
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#10 ·
We sold my gelding with the clause right of first refusal. It's mainly in case the horse gets injured and cannot perform anymore, or has training problems, or something happens to the owners, we would like to be notified before an auction house or a kill buyer can be. If the horse increases in value, of course we would like to know if the horse is up for sale, but if we can't afford it, we won't buy the horse. But if the horse is selling for a large amount of money, odds are it won't end up at a sale or auction house. We still have sentimental value for the horse, and will happily buy the horse back to sit in our pasture if anything detrimental happens to it.
 
#12 ·
I actually dont see a problem with them asking for that as long as they agree that if the horse has been improved or the market price has gone up then the value of the horse will increase.
Surely all they are trying to do is protect the horse they are having to sell for some reason from ending up in the hands of a meat buyer
I had that agreement with three ponies we had - two that we sold and bought back one of them then ended his life with us and the other actually eventually went back to the woman we bought him off to live out his life (as per the agreement we had with her) and one that we bought and sold back to its original owner where she lived out her old age as a companion. It worked very well for us and saved a lot of worry about what might happen to them.
I guess it all depends on the motives of the seller
 
#14 ·
I've bought and sold horses with first-right-of refusals on them. Sometimes they are limiting - for the first year. Just to help ensure you aren't flipping the horse. Many times I believe that clause is in there because it makes the owner feel better about the sale. And sometimes - like in a case a few years back - I had to sell due to hard times (I was laid off) but if the horse came up for sale when we were doing better I would have bought him - and yes, with full understanding that I would probably have to pay quite a bit more than what I sold him for. That is life.

I did a horse swap last year and both horses had first right of refusal on them. In the contract it outlined it as a reasonable market value at the time of the future sale. So if either of us put training on it or anything like that or the market improved - we would lose nothing by offering the horse back.

They still have the horse I sold to them, but the one I got from them did not work out. Quick note to let them know it was not working out and why and if they were interested in purchasing him back. They weren't. Simple and easy and I found him the best home that fit him that I could.

I also like getting updates on horses I've sold and giving updates on horses I bought. I haven't found anyone trying to control a horse I bought from them - but just some updates to see the horse is settling in well and working out in the new home really helps the party that had to sell I think. Especially if they were selling for other reasons other than total dislike for the horse.
 
#15 ·
Cat, I think if people voluntarily give you updates that's great. For the first couple of years I owned JJ I'd keep his former owner updated with pictures and e-mails. He's been with me almost 5 years now, so the communications have pretty much ceased. But she never demanded anything, which is why I was so willing to keep her informed.
 
#16 ·
When I bought my horse over 13 years ago, the woman who sold her had first rights of refusal. Her contact info has long since vanished into a random file and I doubt she'd want to ship the horse from Scotland back to the States!

When I was away at university out of state (but not yet out of the country), she phoned my parents -- the number she had for us, as I was 17 when we bought the horse -- just to see how the horse was getting on. This was four or five years after we'd bought her. Ex-owner was pleased as punch to hear that we still had the mare and she was away at college with me.

Sometimes I wonder what she'd think if she phoned my parents and learned the horse was now in Scotland. It's not what you expect to happen to your horse!
 
#17 ·
When I was horse shopping, I went to see a horse from a private seller that I liked and was planning to buy. We negotiated, I rode the horse etc.

Then when I went to pick up the horse and pay for it, I was slapped with an unannounced 'contract'. I was there with cash, trailer etc thinking I was getting my new horse.

Her previously unannounced demands:

First right of refusal at the same price as the sale today.
She was going to follow me to my barn to make sure she approved, she would have a trailer to bring back the horse if she did not.
She had a right to visit the horse at any time, and without notice. I was not allowed to deny her access, or she would take legal actions to get the horse back.

Erm no! This was a horse I was buying from a private seller - not adopting.

I thanked the idiot for wasting my time, and left cash in my pocket, and an empty trailer to return to horse shopping.
If she had told me these terms, I would never even had looked at the horse.

Another horse I drove about 3 hours to see. The horse came out, it was totally different from the one pictured in the sale ad. I said, woah that's not the horse I saw on the ad. Apparently the girl didn't have a camera, and so just posted a random internet photo to her ad.

I hate people!
 
#18 ·
In the past we have sold horses with first right of refusal. If they want to get rid of the horse within the first year we refund the purchase price of the horse. After a year, if they want to get rid of the horse and they should contact us. We want a vet reference and if you board we would like to see the area when we deliver the horse.

I have had this work out a number of times. Where a horse was not fitting with the owner they called and we went, picked the horse up and returned the money. To me, first right of refusal is not about money. Refund of money assumes that the new owner has improved the horse. I have gotten horses back from an owner where the horse is snotty and spoiled. We had another horse come back from a similar situation after a few years. The barn owner where they were boarding was not feeding the horses. The horse came back to us thin and once the owners built a new barn and we returned the horse.

In my opinion, first right of refusal a way to try to keep a horse out of a slaughter pen. I also figure that with the time, energy and money I put into a horse its part of my job as an owner to make sure that it ends up in a nice place. I decided to breed a mare, I decided to foal out a horse and I decided to train this horse. So, its my responsibility to do my best to make sure the horse is in a safe place.
 
#19 ·
I did a right of first refusal for my old heart horse, Ace. I had him from the time he was a yearling to his 12 year old year. He has mild ringbone and arthritis, and just can't do what I need my horse to do anymore, but he has a lot to offer for the young ones or older ones who just want to mosey along. I didn't want him to end up starving in a field, so for him it made sense.. his owners know I love him and when he no longer works for them, I will happily hand them a check and bring him home. Made me feel a lot better about finding him a new home...
 
#20 ·
I gave away a mare to what I thought was a good home. I also thought he was honourable. Months later I found out she was not well taken care of -- was substantially underweight, probably by 200 - 250 lbs. She wasn't a hard keeper, but she did need a whack of hay -- a WHACK! Anyway, by the time I found out about it, the mare was in a new home - thankfully a good one and she is now well taken care of again.

I was floored that the man didn't contact me when he was no longer interested in having her. I had told him numerous times to let me know if he had any difficulty whatsoever and I would find another home for her. We spoke several times over the following months about other things.

I will never again let a horse go from my property without a written and withnessed right of first refusal unless I am getting rid of the horse because I am no longer able to physically or financially care for it. And I will be much more careful. And snoopy. I will do drive-bys on any new home. I feel bad to this day that I caused her to be in that situation.
 
#21 ·
I have my horse because of "right of first refusal"- his previous owner had to sell him due to divorce and offered him first to the breeder from whom she had bought him. The breeder has a "right of first refusal" clause in the bill of sale he gave me, too, but to be honest I'd call up the previous owner first; I exchanged a few e-mails with her around the time that I bought him and it was very clear to me that she was heartbroken that he had been sold and she no longer had the opportunity to eventually buy him back again. That, and I wasn't impressed with the condition he was in when I bought him (underweight even though he's an EASY keeper, poorly maintained feet, etc.)
 
#22 ·
I can understand using the right of first refusal to prevent the horse from.ending up in slaughter if someone knows if all else fails, they can get x amount of money back. And I would be fine with it if it ended there. I don't like people checking up on me and driving by the house. Call me paranoid, but I live in the country so I don't have to deal with people, including nosy neighbors. But that's kind of off topic.

My issue starts when people think they have the right to the horse at any/all time and should get it back in the amount of their choice. I'm happy to send updates for a little while so they know their horse has settled, and that's just because I'm a decent person, and once those hooves are on my property, anything I inform the previous person about is out of the goodness of my heart. I don't lease or adopt horses because I don't like being told what I can and can't do with them. But by some of your descriptions, it seems the people I have passed over weren't using the clause properly. If all they wanted was first option to purchase the horse at whatever price I set it at, sure. No need for drama and hurt feelings because I didn't keep a horse forever. In this day and age, people should be happy to know that a horse had a great, spoiled life while it was with me, however long that might be, whether it is is a month or 10 years.
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#23 ·
I've always thought about it as a courtesy thing. When I sold my father's older gelding (20 years old, we had him for 6 years) I asked that if something came up that they might consider notifying me. I didn't require it and didn't even mention it in our contract (they leased him first), but let them know that the horse meant a lot to me.

Ends up two years later that the family was relocating out of the states and gave me a call and offered him back to me for free. Very sadly I was unable the support two horses at the time and wished him luck with rehoming him.

I think its a nice thing to do, but never should be necessary.
 
#24 ·
Both the horses we have recently bought have a "First right of Refusal" clause. It's a simple one liner that merely states that should we for whatever reason decided to sell said horse, the folks we bought them from get first chance to buy them back at whatever price we are asking.

I'll honor that. I see no reason not to, really. They aren't up in our business and made no demands. Course, if they had, we wouldn't have bought the horse in the first place!
 
#25 ·
I brought my gelding from a lady that I hadnt known long and she did ask if I ever decided to sell him that I would give her the first option of buying him back. We never put anything down on paper and have lost touch for the most part but I would probably still let her know if I did sell. To me its a good sign if someone values the horse enough to want it back in the future or least to have that decision. If it got to the point where he had been retired and for whatever reason I could not keep him on then I would definitely consider letting her take him back. I doubt I would expect any payment in that situation though.
 
#26 ·
I hate right of first refusal. Sure I'll give a previous owner updates at MY discretion, but don't expect me to let you see the property and have unplanned visits. If you want to keep ties to the horse, don't sell the thing. UGH, some people!
 
#27 ·
See to me though right of first refusal is only used when it comes time for you to sell. If you want to sell then I want first crack at buying back at whatever price you have it listed for. I think anyone saying well I get to buy it back at the price you payed me for it is stupid. I mean if you have put thousands of dollars and hours into additonal training then the horse will be worth more than you paid for it and I would expect to have to pay for that if I wanted my old horse back.
 
#28 ·
I do agree with visiting a property before you sell or lease a horse. It's great to see a persons other horses. If they're all in good condition it's a relief, if their horses are in a bad way don't leave the horse.
Right of first refusal is a privilege and a favor but it makes sense
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