Law Changes Horse Transactions in California

Recent changes to the California Business and Professions Code 19525 affect how horses can be sold in the state of California and has serious implications for horse professionals. This law specifically addresses how things such as bills of sale, commissions, financial records and dual agency must be handled.

This change affects everyone buying or selling a horse or horses, whether as a private individual or as a business. Modification of California Business and Professions Code § 19525  now requires the following:

1. All horse sale transactions must be accompanied by a written bill of sale signed by both the buyer and seller or their agents.
2. If an agent is acting on behalf of both the buyer and seller this “dual agency” must be disclosed in writing.
3.  Any commission paid to an agent in an amount over $500 must be disclosed in the written bill of sale.

If a lawsuit is brought, a person injured by a violation of the statute will be able to recover treble damages from the other party. This is significant because a lawsuit that may not be worth bringing because of cost, suddenly has a much higher potential damages award.