{"data":{"id":"us-ky/krs-230.357","jurisdiction":"us-ky","citation":"KRS 230.357","heading":"Written bill of sale or acknowledgment of purchase -- Requirements --","body":"Auction requirements -- Dual agents -- Disclosures required -- Violations --\nAuction disclosures not required -- Limitation on application of section --\nEnforceability of contracts for payment of commission.\n(1) For purposes of this section, \"equine\" means a horse of any breed used for racing or\nshowing, including prospective racehorses, breeding prospects, stallions, stallion\nseasons, broodmares, yearlings, or weanlings, or any interest therein.\n(2) Any sale, purchase, or transfer of an equine shall be:\n(a) Accompanied by a written bill of sale or acknowledgment of purchase and\nsecurity agreement setting forth the purchase price; and\n(b) Signed by both the purchaser and the seller or  their duly authorized agent or,\nin a transaction solely relating to a season or fractional interest in the stallion,\nsigned by the syndicate manager or stallion manager.\n(3) In circumstances where a transaction described in subsection (2) of this section is\naccomplished through a public auction the bill of sale requirement described in\nsubsection (2) of this section may be satisfied by the issuance of an auction receipt,\ngenerated by the auction house, and signed by the purchaser or the purchaser's duly\nauthorized agent. An agent who signs an auction receipt on behalf of his or her\nprincipal shall do so only if authorized in writing. When presented with such\nauthorization, all other parties to the transaction may presume that an agent signing\non behalf of his or her principal is duly authorized to act for the principal.\n(4) It shall be unlawful for any person to act as an agent for both the purchaser and the\nseller, which is hereby defined as a dual agent, in a transaction involving the sale,\npurchase, or transfer of an interest in an equine without:\n(a) The prior knowledge of both the purchaser and the seller; and\n(b) Written consent of both the purchaser and the seller.\n(5) It shall be unlawful for a person acting as an agent for either a purchaser or a sel ler\nor acting as a dual agent in a transaction involving the sale, purchase, or transfer of\nan equine to receive compensation, fees, a gratuity, or any other item of value in\nexcess of five hundred dollars ($500) and related directly or indirectly to such\ntransaction from an individual or entity, including any consigner involved in the\ntransaction, other than an agent's principal, unless:\n(a) The agent receiving and the person or entity making the payment disclose in\nwriting the payment to both the purchaser and seller; and\n(b) Each principal for whom the agent is acting consents in writing to the\npayment.\n(6) Any person acting as an agent for a purchaser or seller or acting as a dual agent in a\ntransaction involving the sale, purchase, or transfer of an equ ine shall, upon request\nby his or her principal or principals, furnish copies of all financial records and\nfinancial documents in the possession or control of the agent pertaining to the\ntransaction to the principal or principals. For purposes of this subs ection, financial\nrecords shall not include the agent's or owner's work product used to internally\nevaluate the equine.\n(7) Any person injured by a violation of this section shall recover treble damages from\npersons or entities violating this section, and the prevailing party in any litigation\nunder this section shall be entitled to an award of costs of the suit, reasonable\nlitigation expenses, and attorney's fees. As used in this section, treble damages shall\nequal three (3) times the sum of:\n(a) The diffe rence, if any, between the price paid for the equine and the actual\nvalue of the equine at the time of sale; and\n(b) Any payment made in violation of subsection (5) of this section.\n(8) Nothing in this section shall require disclosure of compensation arrangements\nbetween a principal and an agent where no dual agency exists, where the agent is\nacting solely for the benefit of his or her principal, and where the agent is being\ncompensated solely by his or her principal.\n(9) Notwithstanding any provision of the Kentucky Revised Statutes to the contrary, for\ntransactions contemplated by this section that are accomplished through a public\nauction, this section shall not require disclosure of th e reserves, the identity of the\nprincipals, or the auctioneer's commissions. Auction companies shall not be deemed\nto be dual agents for all purposes under this section.\n(10) The provisions of this section shall not apply to the sale, purchase, or transfer  of an\nequine used for showing if the sale, purchase, or transfer does not exceed ten\nthousand dollars ($10,000).\n(11) No contract or agreement for payment of a commission, fee, gratuity, or any other\nform of compensation in connection with any sale, purch ase, or transfer of an\nequine shall be enforceable by way of an action or defense unless:\n(a) The contract or agreement is in writing and is signed by the party against\nwhom enforcement is sought; and\n(b) The recipient of the compensation provides a writte n bill of sale for the\ntransaction in accordance with subsections (2)(a) and (3) of this section.\n(12) No person shall be held liable under this section unless that person has actual\nknowledge of the conduct constituting a violation of this section.","path":["KRS Chapter 230"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=10850","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:46Z","sha256":"ae99b11976845550bfc451bc7ff0d073a3b0800dded0849e97f9ef2adf160f76","source_id":"us-ky","stale":false,"prev":"us-ky/krs-230.355","next":"us-ky/krs-230.360"},"notice":"GroundRules: Original legal text. Not legal advice."}