What is a Dog Co-Ownership Contract?
In canine co-ownership, two or more individuals share title and control over a particular dog. Co-ownership often arises between individuals who want to improve the genetic, performance or conformation profiles of their respective breeding programs. In practice, however, it is often impractical for two or more parties to co-own a dog due to the logistical and legal implications involved. When shared ownership is sought, whether for practical or legal reasons, a carefully drafted Co-Ownership Contract that addresses each party’s rights and responsibilities will help prevent misunderstandings or disagreements .
Also referred to as "partnership agreements", co-ownership contracts represent a form of business partnership in which the co-owners seek to outline the terms of their relationship, particularly under circumstances when one party retains physical possession or control of the dog. Unlike most agreements between pet owners, canine co-ownership agreements address issues such as breeding rights, breeding restrictions, health testing, transfer of ownership, future boarding and care for the dog, sales and revenues from sale of puppies (if any), and responsibilities for costs associated with ownership (e.g., veterinary care, food, insurance).
Both the American Kennel Club and Canadian Kennel Club have sample co-ownership agreements that the parties may use, although these models must be carefully tailored to reflect the terms of that particular co-ownership arrangement.
Co-Ownership Contracts Essential Elements
A co-ownership contract should cover the following elements:
License of Purposes: The dog shall only be used for purposes as follows:
(i) A foundation bitch for breeding puppies to be advertised for sale, at the discretion of both the co-owners.
(ii) A sire to work with a reproductive veterinarian (should the owners so desire) for the purpose of providing pregnancy testing, stud services and collection of semen for storage in a facility to be determined in the future by the co-owners. Semen collected and stored shall be the exclusive property of the co-owners, to be provided to the purchaser of the contract for the purpose of getting a litter from an appropriate bitch (determined by the co-owners) at a time agreed to by the parties.
(iii) A pet in accordance with AKC rules and regulations and all applicable local ordinances, statutes and laws.
(v) Such other appropriate purposes as may be mutually agreed upon by the co-owners and the buyer, with specific notice to the AKC of any change of purpose.
Ownership Interest: The dog will be the property of the co-owners.
Care of the Dog: The co-owners agree that they both have the right to and will be responsible for, the care, maintenance, control, and training of the dog, including the responsibility for all reasonable expenses relating to its care (including, but not limited to, food, veterinary care, medications, grooming, and training). The co-owners shall each have the right to and shall be required to provide twenty-seven percent (27%) of the above-mentioned expenses. The co-owners shall have the right to divide the expenses of the dog equally, or in such other manner appropriate under the circumstances; and shall have the right to require an accounting from the other co-owner of all expenditures and how and why made. The co-owners shall maintain all records and receipts pertaining to all expenses incurred in the ownership of the dog.
Liability Insurance: Each party to the contract shall be liable for property damage and/or personal injury to third parties caused by the negligence of their household members or guests in connection with the dog, and shall indemnify and hold harmless the other party to the contract against any such claims, liabilities, suits, demands, costs, losses, and reasonable attorney’s fees arising out of the negligent act or omissions of the indemnifying party.
Permission to Breed: Neither party shall have permission to breed the dog unless there is advance permission granted by the other party in writing who shall have the right to withhold such permission without cause.
Disclaimer: Each party hereto disclaims any representation or warranty, express or implied, including without limitation any representation or warranty that the dog has any particular health or genetic status.
Dog Co-Ownership Agreements Benefits
The greatest benefit of a co-ownership agreement is the assurance that both parties are legally on the same page about the shared responsibility of the pet. A contract as it relates to the breeding of your dog, will put on paper the responsibilities of each party for the dog, the breeding, and possibly the placing of the puppies. It requires the signing parties to agree to a plan, whether or not they have already discussed it, and most likely it will help address issues before they become an actual problem. For instance, using a dog for breeding may make you a co-owner with limited registration, which means your dog is restricted from showing or being bred. The co-owner may want to show the dog without ever breeding, could be allergic to dogs, be bad with youngsters, or any number of other reasons for not wanting the dog in their home. A contract could prevent hardship on the dog, the owner, or an allergic neighbor. Another benefit is protecting your rights as the owner of the dog. If all the conditions are agreed upon before the breeding, there will be less conflict in the future. A co-owner cannot take action that would harm your dog without prior agreement. If you and the co-owner have agreed in writing that the dog cannot be sold, taken to a shelter, or given away, then the co-owner cannot legally do any of these things, even if you get into a disagreement later. If one of the parties wants to sell the dog, it should be offered for sale to the other party first. If the sale goes as intended, make sure to follow up with the buyer about registration and who should be listed as the owner. A main responsibility for both parties is caring for the dog. This consists of walking, grooming, feeding, housing, etc. Breeding is time-consuming. Each party needs to agree on the timing, where the birthing will occur, and how to find a proper veterinarian and puppy buyers. Once the puppies are old enough, they need to be placed in permanent, caring homes. Again, each party must agree on this process. Make sure all requirements for a breeding are written out in the contract and signed by both parties.
Pitfalls of Dog Co-Ownership
Co-Ownership comes with a whole host of challenges. Some of these are more obvious than others, and some are easy to resolve while others are more difficult. Here are a few of the common issues you may run into and how you can mitigate against them with the right contractual terms.
Most co-owners are going to want to breed their dog. But, as with any other area of dog ownership, it’s important that you and the other owner have the same goals and ideas for how you’ll go about breeding. The contract should contain a few essential terms. First, you’ll want to agree on whether or not you’re going to breed the dog at all. If you’re not going to breed, then it doesn’t make sense to spend the money and time you need to invest when you have a major or minor issue present. Second, you’ll want to determine whether the co-owners will have an agreement to have the dog spayed or neutered. Third, it’s important to determine whether or not you agree on breeding with the same stud in mind, and if you don’t, can you agree on the same pool of stud dogs? Fourth, you’ll want to have an agreement about how you and the co-owner will care for and maintain the dog while preparation for breeding is underway . Finally, you’ll want to agree on what will happen to the puppies after they are whelped.
For some owners, the owner care is a major issue, and unless they speak up, they can have significant health issues and ultimately incur large expenses that were never intended. The terms of the contract can be important here in setting standards between co-owners to avoid a situation that may be costly to the owner who has assumed primary care.
If both co-owners want to keep the dog in the home together after purchase, that’s only part of the potential problem. That means you will also need to address whether or not the dog is actually going to live at both homes, and if so, at which home for how long and under what circumstances. Alternatively, will the dog only live at one home? Who will pay the expenses? Who is responsible for a breeder, trainer, or other specialists? How will the cost be divided?
Legalities in Dog Co-Ownership
The enforceability of dog co-ownership contracts, the various jurisdiction’s relevant laws and what occurs if disputes arise in the future are all critical components of any co-ownership dog contract key reasons why properly drafted ownership agreements are necessary.
Some jurisdictions impose certain pitfalls when in circumstances where co-ownership agreements are not some sort of written agreement, or in circumstances where a prior court decision may have ruled against the enforceability of a co-ownership agreement. For example, in the State of California, a co-ownership agreement purporting to create an ownership relationship between two parties will be void as a matter of law under same State holdings that do not recognize the validity of a "fraudulent co-ownership agreement," often even in the presence of a written agreement. In Arizona, the co-owners must both obtain an ownership card in their names in order for the dog to be truly co-owned for the purpose of registration with Arizona regulatory officials (without such joint registration, only the person who was named on the litter registration application will be the official owner of said puppy).
Similarly, in other States, co-ownership agreements may not be recognized unless co-ownership has been set forth in writing. In fact, in an opinion issued by the Connecticut Supreme Court, the Court acknowledged the public policy implications of not recognizing the so called "fraudulent co-ownership agreements." The Court recognized that:
"Fraudulent co-ownership agreements effectively enable breeders to circumvent the liability provisions of [the state Animal Welfare Act] and expose the animals to substandard care and unsuitable living conditions that all but guarantee their suffering and abuse."
If the dog is used for breeding or showing, a complaint may be brought by the American Kennel Club (the "AKC"), the United Kennel Club (the "UKC") or other applicable dog breeding association, to declare a party to be the sole owner or sole person authorized to register the dog on behalf of the co-owners. In some cases, a complainant may request a hearing. If a hearing is held, the complainant usually offers evidence of the breeder sales contract, the registration transaction, the ceding of rights and/or the agreement itself as reasons for transferring sole ownership away from one party to the other party. The respondent co-owner offers evidence of its rights derived from the same form of conveyance or other evidence of entitlement. Which includes evidence of the intention of the parties to the transaction. That is how it is determined which party was most entitled to the dog.
Under Arkansas law, a co-owner may file a lawsuit in small claims court to recover co-ownership of a dog. In some instances, parties may also file an action against the American Kennel Club or other regulatory agency to force it to recognize the parties’ stated wishes as to co-ownership, breeding and/or sale. That may be the easiest way to resolve a co-ownership dispute. It is also a costly venture, and would require you to sue the AKC or UKC in a court of law where they are headquartered. So, most the time, co-ownership dog agreements are only as enforceable as the people that enter into them.
Subsequent actions taken by a co-owner after receipt of full ownership should also be well documented and documented in writing, just as co-ownership agreements should be. For example, if an owner of a dog decides to ship the animal, arrange for its transfer to another party, or offer the animal for sale, such transaction must be documented in writing. That’s because, if the other party is looking to enforce true ownership of a dog, it may be contended that the transaction was facilitated by the transferee or transferee-co-owner breaching the co-ownership agreement’s terms.
Co-ownership Dog Contract Writing Guide
Once your agreement is struck this is not the end, it’s only the beginning. Now that the deal has been struck between you and the co-owner, the specifics of the co-ownership contract must be outlined. These contracts are relatively short in nature, generally a single page long. However, they prevent future misunderstandings and problems between you and the other co-owner. This agreement becomes "the bible" from that point forward. If it’s not in the contract it simply doesn’t exist as far as the dogs are concerned. Errors and omissions in a co-ownership contract can lead to multi-year disputes. Thus, it’s always a good idea to consult with a lawyer about what can or should be in the contract. Working through a co-ownership agreement might be better off facilitated through a lawyer rather than through email or telephone conversations . Even if you think anything is pretty straightforward, meet with a lawyer and write the points down. Better yet get the lawyer to draft the contract. This way the lawyer is ultimately responsible for whether or not an item of yours is included or excluded. The agreement should include the following items: Again, as a thumb rule if it’s important to you, including it in the contract. Additionally, include things like what happens if the puppy dies in utero or dies after being born. There are time lines for these type of things and if you don’t have something in writing you will have to argue via telephone in order to settle your disagreement.
The contract needs to be signed by all co-owners and the puppy must not be registered with the Canadian Kennel Club until this agreement has been put in place and signed off on by the owner and co-owner.
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