Ownership and co-ownership

Registration document

The registration card is the official document which indicates the owner to whom the horse is registered in the SIRE database of the IFCE (French institute for horses and equestrianism) and it has three functions :
•    To establish the identity of the animal with the most relevant information, thus establishing a link between the identification document and the animal. such as his SIRE number, the UELN number, his name, his breeding (either ONC, OC for horses of unknown origin, or the studbook he belongs to), and his parentage.
•    To mention the owner(s) name(s) as registered in the SIRE database and the percentage of ownership as well as the owner’s address.
•    To certify the sale of the animal and to enable the IFCE to update the owner’s details

This document comes in several forms :
•    paper format : as a A5 size card printed on both sides.
•    In digital format : the owner may then print out the form from his computer on an A4 sheet of paper if necessary.

Ownership

Ownership is defined by the Civil Code article 544 which states that : « ownership is the right to be in possession and benefit from things absolutely, provided that the said items are not used in a way which is fobidden by law or by regulations »

The registration document is a probational means. It shows proof of ownership of the horse.
However the ownership stated on the registration card only constitutes a presumption of the right of ownership. This means that the contrary can be proved.
For example, a sales contract, an invoice, or any other document can overturn this presumption by bringing proof to the contrary.

NB : the Civil Code in article 1359 stipulates that a privately signed or authentic document is compulsary for any transaction over and above 1500€.

For the IFCE, the first name on the list of co-owners will be entrusted with the registration document.
The main reason for this, is that in the case of a digital document, the main co-owner will be the only one able to print out the registration document.
However, in the case of a sale, he will need to obtain mandate from the other co-owners to have the right to sell the horse.

This type of relationship can quickly become source of conflict. The regulations concerning co-ownership of horses is not highly developed, and is mainly regulated by case law.
Therefore, it is strongly advised to plan for a suitable co-ownership contract, adapted to the requirements of the different owners, and especially to the planned use of the horse. One should cater for sharing of expenses, sharing of usage, sharing of winnings, the power of decision, the place were the horse is kept….
Integrating a pre-emptive clause giving the other co-owners first choice when one co-owner wants to sell his shares, and this before offering the shares to a third party, can be a very useful provision.
Without a contractual provision, the major share holder does not have the power to sell all of the shares of the horse. He must first obtain express mandate from the other owners, or their signature on the sales certificate.
It is also good to remember the difference between the first co-owner on the registration card and the following names (whether majority or minority share holders). Only the person at the top of the list can print out the card when it is in dematerialized format. Consequently this confers substantial power to this co-owner.

The sales certificate on the back of the registration document and a sales contract both ensure a probational function. Both enable to establish ownership in the case of dispute.
However there is a major difference between the two documents :
•    The vocation of a sales contract is to determine the rights and obligations of both parties in the contract. It determines the price, the delivery mode of the animal, possibly a declaration regarding the existence of a veterinary certificate(s), responsibility etc...
•    the sales certificate does not fulfil these requirements.
Moreover, the stipulations of a sales contract are private and do not need to be transfered to the IFCE, except to prove ownership of the horse.

On the contrary, the sales certificate, should be sent to the IFCE and registered within 8 days after signing for the sale.
•    If there is a paper version of the sales certificate it should be endorsed by both buyer and seller, and transfered by the new owner to the IFCE to be registered. The new owner may then choose to have a dematerialized version of the registration certificate.
•    If the form is the electronic version, the buyer cab register the change of ownership directly from his personal space on the website, thanks to the printed version supplied to him by the seller.