Leasing a Horse
May 24, 2011
How to make leasing an American Quarter Horse a smooth operation.
Filing a lease with AQHA is a fairly simple process that is often overlooked. Many people are unaware when they enter a lease agreement with an American Quarter Horse owner that they need to officially file the lease with AQHA. This is a very important step to take. You’ll protect yourself and any investment you make by entering into a lease agreement. It’s always good to have it in black and white!
A horse can be leased, according to AQHA rules, for two purposes: breeding or showing. And here’s the catch: If you lease a horse to breed, the horse cannot be shown (Rule 402(d)). If you lease a horse to show, it cannot be bred until the lease is terminated.
First, let’s go over the rules to lease a horse for breeding purposes (Rule 225).
- The lease has a three-year maximum. If the lease needs to be extended beyond three years, a new lease will have to be filed. If you place a beginning date on an AQHA Lease Authorization Form, but no ending date, AQHA will automatically end the lease three years from the start date.
- There is a separate form to lease a horse for breeding purposes and to lease a horse for showing purposes.
- During the lease term, no ownership changes will be completed to a third party until the lease ends.
- During the lease term, only the lessee or lessee’s authorized agent may sign a Breeder’s Certificate, Stallion Breeding Report or Registration Application for leased horses.
If you lease a mare, you become the breeder and owner of the resulting foal if your lease dates correspond. - AQHA charges a $20 fee to file a breeding lease, and a $30 fee for a showing lease. The lessee must be a current member of AQHA.
Those are your basic lease rules. Now, what happens if the lease needs to be terminated early?
- A lease can be terminated via written notice, signed by both the lessor and lessee.
- A lease will be automatically terminated upon the receipt of a transfer of ownership from lessor to lessee (eg., the lessee buys the horse).
- A lease will be automatically terminated upon the receipt of a transfer arising from an approved claiming race.
- There is no additional fee for prematurely terminating a lease.
As stated above, all other transfers will be held until the lease is terminated or ends.
That’s what you need to know to get started. If you are leasing a horse for showing purposes, there are a few extras. The most common question I receive, and also the most obvious difference between leasing for breeding and showing, is that the owner of the horse can still exhibit the horse while the lease is in effect.
- The lessor of a horse may only exhibit the horse in novice or open competition.
- The horse cannot be bred while the lease is in effect if it has been entered into a show.
- The horse may be exhibited in all classes by the lessee.
- The lease must be on file for a minimum of one year. (Breeding leases do not have a minimum.)
- If a show lease is terminated before the one year period ends, there is no penalty.
- A family member of a lessee may also exhibit the horse, so long as they are immediate family members as stated in rules 403(a)(5) and 404(a).
Don’t forget to leave a comment if any question springs to mind!
As always, at your service…
Kayla Randall
AQHA Assistant Internet Production Manager
Comments
19 Comments on “Leasing a Horse”
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April 9th, 2009 at 3:54 pm
Leasing a horse is a good idea. Especially for those might be unable to afford the purchase price of a horse. Especially a good idea for the parent of a child or teenager who might move on to other interest after a short time.
April 25th, 2009 at 9:27 pm
Hello I am considering leasing my AQHA gelding to a teenager who had plans to show her own gelding at AQHA shows but he was tradgicly injured and had to be put down. She and I were wondering if she leases him cam she still show youth amateur or will it mess up her status?
April 27th, 2009 at 9:15 am
Colleen,
A horse leased by an Amateur or Youth exhibitor for showing purposes may only be exhibited in Novice Youth or Novice Amateur classes. The main purpose of this rule is for an exhibitor to be able to try out a horse before purchasing. It is also good for practice before you purchase your own horse.
In order for a horse to be exhibited in Youth or Amateur classes, it must be owned by the exhibitor or an immediate family member per AQHA rules 403 and 404.
Please feel free to contact AQHA Customer Service at 806-376-4811 Monday-Friday 8-5 CST and a representative will be happy to assist you with any further questions.
Kayla Randall
AQHA Customer Service
July 16th, 2009 at 4:56 am
Can two separate individuals (not related) own and show the same horse i.e., both individuals names being on the registration certificate.
August 25th, 2009 at 9:18 am
If I lease my horse out to a novice youth, and she shows him in novice youth showmanship, for example, can I still show him at the same show in Amateur showmanship? What about novice amateur showmanship?
November 11th, 2009 at 2:46 pm
Linda,
All parties involved in the ownership of a horse must be related per AQHA Amateur and Youth rules to exibit the horse. For example: If you purchase a horse in a partnership with a friend, and record the ownership in both of your names you may not exhibit the horse in AQHA Amateur competition and neither can the partner. A horse may be exhibited in the Open Division regardless of ownership, however, any Amateur card holders must follow Amateur rules if they are going to exhibit a horse in the Open Division.
If you have further questions, contact AQHA Customer Service to speak with me or another AQHA Customer Service Representative at 806-376-4811 Monday-Friday 8-5 CST.
Kayla Randall
AQHA Customer Service
November 11th, 2009 at 2:58 pm
Lauren,
AQHA rules state that a horse cannot be shown in the same class in the same division, therefore, you may exhibit your horse in an Amateur class at the same time a Novice Youth is showing him.
Kayla Randall
AQHA Customer Service
December 14th, 2009 at 7:39 pm
I bought a mare from a well known QH ranch, and leased her back to the same ranch for breeding purposes. It was to be a four year lease with a guarantee buy-back at the end. It’s two years into the lease, and the ranch has filed cpt 11 bankruptcy. Also, the lease contract states that I was to be paid $10.00 per year up front for the lease. That was never paid. Can you give me any insight into my options. I don’t know if the mare is currently in foal or not, does that make any difference?
December 16th, 2009 at 3:27 am
Thank for information ! i love it. Many thank !.
August 11th, 2010 at 4:01 am
[...] the same class as the novice exhibitor. Novice youth and novice amateur exhibitors can also show a leased horse in a novice [...]
September 14th, 2010 at 3:19 pm
[...] In October 2007, the pair successfully completed their final event of the year at prelim level. The course was a true test of both Tommy and Emily’s abilities, but Tommy was able to prove his merit. They finished in 10th place at the same event they won in 2006 at the novice level. [...]
November 15th, 2010 at 2:06 pm
Does the AQHA allow amatures to show a leased horse? What I read is that the only level allowed to compete is the youth and novice. Am I not following this correctly?
November 15th, 2010 at 2:29 pm
Joe,
Currently, leased horses may only be shown in the novice division. Beginning January 1, 2011, amateur and youth competitors may show a leased horse, provided that the lease is at least 12 months long.
August 24th, 2011 at 6:32 pm
I am currently an amatuer exhibiter, if I lease one of my show horses out which I have bred and halter trained for show purposes at $200 per year, is that considered remuneration under rule 403 and would that then make me ineligibile for amateur membership
August 25th, 2011 at 3:47 pm
What if I’m leasing a horse, but they don’t plan to breed or show? Can I still file it as a show lease, even though she won’t be showing the horse?
November 15th, 2011 at 5:58 pm
I was wondering on average, what is the most common charge that horse ownwers charge others that want to lease their horses? And is there a standard lease agreement available anywhere to download and print?
January 18th, 2012 at 1:51 pm
I am considering leasing my stud to another farm on a breed lease. I can’t find anything about what that should cost for the lessee (I know it is subjective but I can’t even find a starting point), nor any template or specifics as to wordage for a contract. I do plan on requiring insurance, shipping, etc; but what is acceptable for the lease itself since the lessee will have so many other costs related to my stallion? Is there a rule of thumb for a certain amount per mare covered or per month? Other than Rule 225, would any other rules apply?
February 8th, 2012 at 6:56 pm
To Karina……….
When leasing your Stallion out to another farm.. Generally its an agreement between you n leasor on amount paid.. Usually its a set fee with a limit to how many mares.. That they cover your Stallion with..
March 6th, 2012 at 6:57 pm
i want a horse but i really want it to come to my barn like the horse is really mine. other people are there but i still want to feel like he really is mine. do you let the horses go to other stables or do they have to stay there.