Purchase Advice (transfer of funds)

[MummyMoo]

Hi. So, we’ve chosen our horse and he’s passed his vetting (yay!) transport is booked for Saturday. I just wanted some advice on the safest way to transfer funds…

The horse is at a sales livery but the payment needs to be made to the owner. I’ve spoken to and have been messaging the owner and everything seems fine but I’m just concerned about transferring all of the money before the horse arrives.

He’s a long way away from us and transport is being arranged from their end. If anything was to go wrong, I only have the owners phone number and proof of messages. Her details aren’t even on his passport as she didn’t update it after purchasing him. It’s just such a lot of money so I thought I’d seek advice from you all.

How can I transfer the funds in a way that’s safe and fair to both parties?…

 

[ycbm]

You need to clarify whose risk he is at before he travels. If he's at your risk as soon as he leaves then you need to transfer funds before he leaves. If you don't own him until he arrives safe, given that they are arranging transport not you, and that's what you have agreed, then you transfer funds once he has arrived safe.

Personally, as a seller, I would require payment in full before he leaves the selling yard. In fact I'd be asking for it as soon as the vetting went through, as you are already legally committed to buying at that point. And as a buyer I would have him insured before he gets on the lorry or any payment has passed hands.

You need to sort this out directly with the owner.

Congratulations on the new horse, I hope you have great fun with him.
.

 

[Lucky Snowball]

I’d pay a deposit if not done already then transfer balance after he is unloaded at yours.

 

[AmyMay]

Deleted

 

[LEC]

I would never allow a horse to leave unless fully paid for. Seen far too many accidents happen. Once it leaves my yard and my care, I do not want it to be my responsibility so it needs to be paid for in full.

You need the owner to do a fully signed receipt with name and address ready to go in passport. Then as soon as the horse is loaded but not yet started to travel to arrange payment via BACS and for the owner to confirm release of the horse.

BTW I always load first in case there is major drama and the horse has a real issue! If the horse has to wait on the box for 10 mins doesn’t matter too much if has hay.

 

[ihatework]

From the moment you hand over money he is your horse. It’s very normal for this to be at the point of leaving the yard and therefore any transportation disasters are unfortunately on you. You should make sure you insure the horse before they step on the transport if you are planning to insure.

Make sure the transport company is a good reputable one. I assume the vet has cross checked passport against horse microchip? If so, transporter will do a check of passport versus horse and you could also ask seller to video horse loading.

Depending on horse value just check with your bank how much you can transfer in one go and the time it takes to clear. This will be required before the horse leaves the yard.

 

[ihatework]

I’d pay a deposit if not done already then transfer balance after he is unloaded at yours.

Doesn’t often happen that way I’m afraid.
No way would I allow a sold horse off yard without full payment (well not to a sale to a stranger at any rate)

 

[KittenInTheTree]

I would be happy to pay in advance of delivery by bank transfer or in cash, but I would also want written proof that the owner had actually sold me the horse in question.

 

[millitiger]

I did this with my last purchase.

I paid the deposit to sellers account a week before travel- this helps with sending final payment on travel day as the bank accounts 'know' each other and shouldn't be held up for fraud checks.

Seller signed receipt which was given to transporter with passport.
Once transporter called me to confirm all ok, I transferred remaining funds to seller before the horsebox left her yard. It cleared in less than 2 minutes.

 

[sbloom]

You could investigate possibly using an escrow account, though I've only used one with a courier who acts as the confirmation for the final transfer.

 

[Ossy2]

You need a signed receipt with sellers name address signatures ect. Also if you want to get the passport changed into your name you may also need something that proves the “owner” had the rights to sell to you as you are essentially skipping an owner in the passport.

 

[ihatework]

You need a signed receipt with sellers name address signatures ect. Also if you want to get the passport changed into your name you may also need something that proves the “owner” had the rights to sell to you as you are essentially skipping an owner in the passport.

That’s a very good point.
Would be worth checking what the PIO require (some are more flexible than others).

 

[Timelyattraction]

You need to pay before/ on the day he leaves the yard. Ive had several horses where I’ve arranged transport to collect them and drop them off at mine and ive always paid in full before they've been collected by the transport company.

If i was selling a horse that was being collected by a transport company I wouldn’t be letting it leave my yard until i’d been paid in full.

 

[Timelyattraction]

I also always get a receipt of purchase emailed to me after i have made payment so you have proof for insurance companies/ passport name change.

 

[tda]

I also would not let a horse leave until paid for.
don't use BACS, that's a 48 hr process, most accounts now use Faster Payment Service and in most instances it transfers within minutes

 

[Birker2020]

I did this with my last purchase.

I paid the deposit to sellers account a week before travel- this helps with sending final payment on travel day as the bank accounts 'know' each other and shouldn't be held up for fraud checks.

Seller signed receipt which was given to transporter with passport.
Once transporter called me to confirm all ok, I transferred remaining funds to seller before the horsebox left her yard. It cleared in less than 2 minutes.

I sent a £1 to the sellers account as deposit to check they had received it, then a further £499. Whilst there at the viewing I also checked whilst there that the internet was sufficient. Then when I picked him up transferred the rest over (£12) that I had taken out of my savings and put in my bank account. I did this through my internet banking direct to her account when I picked the horse up using my mobile phone. My bank is Nat West and its a flipping nightmare as you have to have a card reader to set new payees up.

You can use a bankers draft which is something that cannot be reneged on. It can't bounce either. I used that for my last six horses before I bought Lari.

Banker's draft - how to get one | Barclays

This is a cheque that draws funds from Barclays, rather than from your individual account. You can find out how to order one here.

www.barclays.co.uk

 

[Polos Mum]

Presumably you've been to view so it's not 5 hours far away.

I'm a control freak and quite risk averse so I would probably get out the cash and drive there to hand over the cash as they put calm sound horse on the lorry.
I would also want to sort my own transport so I know it's someone who's insured and professional.

You need to make sure the passport arrives - professional transporters won't travel without passport but i had one arrive here without it because "a friend" decided to drop him off !

If you plan to insure you also need that in place from the day he is going to travel to you. An issue caused in transport you want to make sure you've covered for.

 

[lamlyn2012]

If you are planning to pay via bank xfer I'd have a conversation with your bank first.
My bank initially stopped my payment as they thought I was being scammed.
My purchase was from a reputable dealer with all proper paperwork in place, but the bank still wanted me to go back to the seller for more information. It took a very lengthy telephone conversation before they agreed to xfer funds.

 

[Jambarissa]

This is so tricky. As a buyer I'd rather pay on arrival but as a seller I'd rather they pay me before loading.

What are they asking for? I'd definitely pay a deposit after clear vetting but you aren't legally bound to buy at any point (in the UK at least).

You can arrange for your insurance to kick in from the day you pay so to a certain extent the earlier the better, illness is usually excluded from a few weeks from the purchase date.

 

[Jambarissa]

Also if paying via bank transfer send £10 first and check they get it!

 

[stormox]

Pay before horse leaves the yard. Either cash or through bank.

 

[MummyMoo]

Presumably you've been to view so it's not 5 hours far away.

I'm a control freak and quite risk averse so I would probably get out the cash and drive there to hand over the cash as they put calm sound horse on the lorry.
I would also want to sort my own transport so I know it's someone who's insured and professional.

You need to make sure the passport arrives - professional transporters won't travel without passport but i had one arrive here without it because "a friend" decided to drop him off !

If you plan to insure you also need that in place from the day he is going to travel to you. An issue caused in transport you want to make sure you've covered for.

Thank-you He’ll be loaded by the trainer/sales livery owner so I’d hope she’d remember the passport but I’ll message anyway. Yes, I’ll sort insurance to start, 1st thing, the morning of transport It was a 7.5hour round trip to view him so not able to do that again (we work and have children so just not viable)

 

[MummyMoo]

That’s a very good point.
Would be worth checking what the PIO require (some are more flexible than others).

I’ll give them a call to check. Thank-you

 

[Goldenstar]

I have always paid for the horse before the horse goes on lorry
He’s at your risk when he’s travelling .

 

[FestiveFuzz]

I’ve always paid in full as soon as they’ve passed the vetting and organised for insurance to start the same day.

 

[ycbm]

If you are planning to pay via bank xfer I'd have a conversation with your bank first.
My bank initially stopped my payment as they thought I was being scammed.
My purchase was from a reputable dealer with all proper paperwork in place, but the bank still wanted me to go back to the seller for more information. It took a very lengthy telephone conversation before they agreed to xfer funds.

I had a very long and frustrating conversation with First Direct which resulted in me stating firmly "I am looking at the horse and only waiting on you to carry out my instruction to pay to load her onto my own van and I have been a close neighbour of the seller for 30 years now pay the blinking money!"

 

[MummyMoo]

Thanks so much for all of your replies. I’ve arranged to pay a deposit and will transfer the remainder of the funds on the morning of travel. Seller will video him loading and send a full receipt and passport with the transporter. Hopefully all will go smoothly. Can’t wait to get him home!

 

[starbucker]

Its always a bit of a faff and scary handing over so much money! With bank transfer you have a proper paper trail which is preferred, thought I handed over cash which worked too, meant I could check them over first before parting with cash (with a signed sales agreement beforehand). Though getting it out the bank was fun practically sprinted to my car out the bank door. I also had the insurance set up a week before so it would start as soon as possible as there is a period of exclusion when you start a policy. Good luck with your new horse

 

[Hobo2]

If you are planning to pay via bank xfer I'd have a conversation with your bank first.
My bank initially stopped my payment as they thought I was being scammed.
My purchase was from a reputable dealer with all proper paperwork in place, but the bank still wanted me to go back to the seller for more information. It took a very lengthy telephone conversation before they agreed to xfer funds.

I am glad it was not just me then. I also had the same trouble with the bank not releasing my money! They asked if I had owed a horse before, had I seen it ect. It took an extra 24 hours to get the money. I felt like they were being my mother . Mine was also on sales livery and she wouldn’t load horse before she saw the money. It was to protect her reputation which was fair enough.

 

[Lucky Snowball]

With payment on arrival, I was thinking the vendor had agreed to deliver as part of the deal.