Securing the purchase of a racehorse at auction

In the horse racing industry, auctions are a preferred channel for acquiring racehorses. They offer transparency, quality and legal certainty. However, they remain complex to navigate, with multiple players, significant financial flows and specific contractual conditions. Inscio Avocats supports you in securing every stage of your purchase.

A strict legal framework for horse sales

Horse auctions are governed by:

  • Law No. 2000-642 of 10 July 2000 (Commercial Code)
  • Law No. 2011-850 of 20 July 2011
  • Articles L.213-1 et seq. of the Rural Code for health guarantees

Sales are organised by approved operators or public officials (notaries, judicial officers), who act as agents for the seller.

Registration of the horse and the seller: a regulated process

Before the sale:

  • The agency selects the horses offered (visits to stud farms, quality of bloodstock)
  • The seller submits veterinary documents and signs a mandate for sale
  • This mandate is binding on the seller and may include a reserve price and sales fees
  • Withdrawing the horse after signing may result in financial penalties

Sales contracts and valuation of racehorses

Conditions of registration for bidders

Bidders must:

  • Provide proof of their financial solvency
  • Be present or represented by a broker or trainer (written authorisation required)
  • Submit a purchase authorisation prior to the sale

An agent acting without authorisation is personally liable.

Conduct of the sale and transfer of ownership

  • The sale is concluded when the hammer falls
  • Payment is generally made in cash, subject to transfer of ownership
  • The agency may offer a payment guarantee to the seller
  • The horse is sold with a veterinary record or under the regime of redhibitory defects

Health guarantees and redhibitory defects

Articles L.213-1 to L.213-9 of the Rural Code govern guarantees in the event of redhibitory defects:

  • Cornage (respiratory noise)
  • Ataxia (coordination disorder)
  • Stable vices (pathological behaviours)

Warranty claims are subject to strict time limits and require a veterinary assessment. Some agencies offer additional contractual guarantees.

Why seek our firm’s assistance ?

Buying a racehorse at auction involves:

  • Significant financial stakes
  • Complex contractual documents
  • Legal risks in the event of a dispute or non-payment

 

Inscio Avocats can help you:

  • Verify the terms and conditions of sale
  • Draft or analyse mandates
  • Secure your acquisition and your remedies