5H-26.003. General Requirements Relating to the Sale or Purchase of Horses

(1) Any sale or purchase of a horse or any interest therein in Florida shall be accompanied by a written bill of sale described in Rule 5H-26.004, F.A.C., except as provided in subsection (8).

(2) A person shall not act as a dual agent in a transaction involving the sale or purchase of an interest in a horse without:

(a) The prior knowledge of both the Purchaser and the Owner; and

(b) Written consent of both the Purchaser and the Owner.

(3) No person acting as an agent for a Purchaser or an Owner, or acting as a dual agent, in a transaction involving the sale or purchase of a horse or any interest therein, may receive consideration, compensation, fees, a gratuity, or any other item of value in excess of five hundred dollars ($500), related directly or indirectly to such transaction, from an individual or entity, including any consignor involved in the transaction, other than the agent’s principal, unless:

(a) The agent receiving, and the person or entity making, the payment disclose in writing the payment to both the Purchaser and Owner; and

(b) Each principal for whom the agent is acting consents in writing to the payment.

(4) Any person acting as an agent for a Purchaser or an Owner or acting as a dual agent in a transaction involving the sale or purchase of a horse or any interest therein shall, upon request by his or her principal or principals, furnish copies of all financial records and financial documents in the possession or control of the agent pertaining to the transaction to the principal or principals. For purposes of this section, financial records shall not include the agent’s or Owner’s work product used to internally evaluate the horse.

(5) An agent or trainer shall not purchase on behalf of its principal, nor recommend that its principal purchase or have purchased, any horse in which the agent or trainer has a legal or equitable ownership interest, either directly or through an entity in which the agent or trainer exercises any ownership or control, without the prior knowledge of the principal and the principal’s written consent, if practicable.

(6) Except as provided in subsection (4), nothing in this rule chapter shall require disclosure of compensation arrangements between a principal and an agent where no dual agency exists, where the agent is acting solely for the benefit of his or her principal, and where the agent is being compensated solely by his or her principal. Further, for any sale or purchase of a horse or any interest therein in Florida through a public auction or a public sale of thoroughbred horses licensed under Chapter 535, F.S., nothing in this rule chapter shall require disclosure of the reserves, the identity of the Owner or Purchaser, or the auctioneer’s commissions.

(7) No contract or agreement for payment of a commission, fee, gratuity, or any other form of compensation to a dual agent in connection with any sale or purchase of a horse or any interest therein shall be enforceable by way of an action or defense unless the contract or agreement is in writing and is signed by the party against whom enforcement is sought.

(8) For any sale or purchase of a horse or any interest therein in Florida through either a public auction or a public sale of thoroughbred horses licensed under Chapter 535, F.S., any bill of sale requirement contained in Chapter 5H-26, F.A.C., may be satisfied by the issuance of an auction receipt or acknowledgement of purchase, generated by the auction company or licensee, stating the name of the horse or the hip number used to identify it for purposes of the public auction or public sale, the date of purchase, and the purchase price, signed by the Purchaser or the Purchaser’s agent. The auction receipt or acknowledgement of purchase shall expressly state or incorporate by reference all conditions of the sale, including the terms of any warranties.

(9) During the conduct of any sale of a horse or any interest therein in Florida through a public auction of horses or a public sale of thoroughbred horses licensed under Chapter 535, F.S., the auction company or licensee shall provide a medical information center on the sales grounds for placement of any medical records on a horse that the Owner or its agent may choose to provide for review by Purchasers and their agents. The auction company or licensee may require in its conditions of sale that an Owner or agent include specific types of medical records in any documentation placed in the center.

(10)(a) An Owner or its agent that has subjected a horse to one or more of the following treatments within 7 days prior to the private sale of the horse or any interest therein shall disclose this fact to the Purchaser prior to the sale:

1. Extra-corporal shockwave therapy or radio pulse-wave therapy.

2. Acupuncture, electro-stimulation, or both, with the intent or effect of altering laryngeal function of the horse.

3. Internal blister or other injections behind the knee, which are intended to or which have the effect of concealing the true conformation of the horse.

4. The use of any electrical or mechanical device designed or used to shock or prod a horse for the purpose of increasing the horse’s speed when it is being exhibited prior to sale, except for the use of a whip, spurs, or items otherwise permitted by the rules of the governing breed association, federation, or other regulatory body.

(b) In any sale of a horse or any interest therein in Florida through a public auction of horses or a public sale of thoroughbred horses licensed under Chapter 535, F.S., the auction company or licensee shall include in its conditions of sale a prohibition on the treatments specified in subparagraphs (a)1.-4., while the horse is on the sales grounds and shall provide specific procedures and means for redress in the event of violations.

(11) With regard to any sale of a horse or any interest therein in Florida through a public auction of horses or a public sale of thoroughbred horses licensed under Chapter 535, F.S., an auction company or licensee that publicly disseminates initial sales results from that auction or public sale shall disclose, within 90 days of the end of the auction or public sale, any such sales that were ultimately determined by the auction company or licensee, based upon the information it receives in the ordinary course of business, as “reserve not attained” or “not sold.” The auction company or licensee shall make this disclosure in the same manner it used to publicly disseminate the initial sales results, as well as in response to any written inquiry to the auction company or licensee.

(12) When an Owner or its agent provides any medical information in response to an inquiry from a Purchaser or its agent about the medical history of a horse, the Owner or its agent shall accurately disclose all information within its knowledge that is responsive to the inquiry.

(13) A violation of any provision of Chapter 5H-26, F.A.C., resulting in actual damages to a person, shall be considered an unfair and deceptive trade practice pursuant to Chapter 501, Part II, F.S.

Rulemaking Authority 535.16 FS. Law Implemented 535.16, 570.07(36) FS. History–New 7-2-08.