Sign on the dotted line
QI’m looking for a new horse and many of the dealers are asking for a deposit in order to secure a viewing. They say this is due to Covid-19. I really like a cob who is currently for sale, but the seller wants a £200 deposit to view him. Is this legal?
Emily Thomas, Hampshire
Rebecca says... It is not illegal to ask for a deposit, including a deposit to view a horse. I would just take care that you are not handing over money to someone without having even a simple contract or agreement in place as it may be a scam. Make sure you do your homework on the seller.
Simple agreement
I would recommend having an agreement for the deposit that sets out:
■ What you have paid and to whom.
■ What the deposit is for.
■ Does the deposit mean that the horse will not be sold before you have had a chance to view him?
■ Under what circumstances the seller can keep part or all of your deposit. For example, if you paid a £200 deposit but decide on the morning of the viewing that you no longer wish to view the horse, could they keep £50 and return £150 within seven days?
■ If you don’t want the horse after viewing, set out in writing that the deposit will be returned to you within a certain number of days, for example, seven days.
Consequences
I would also recommend that the agreement sets out what the consequences are if the deposit isn’t returned to you within the number of days agreed — for example, that interest will accrue at the rate of 8% per day until it is repaid in full.