In the guardian home contracts I've read. the guardian is not the legal owner. The breeder retains ownership.
It's not an arrangement I would enter into, but the breeder, the dog, the guardian, and the contract would all need to be on the same page.
This is a contract from a reputable poodle breeder, identifying info removed.
Guardian Program - Only One Special Puppy Per Litter
In an effort to provide excellent family homes while expanding our breeding options, we offer a Guardian program option to one pick one puppy per litter. As the gene pool for quality Poodles is very limited, having more animals available allows more genetic diversity possibilities for future breeding to produce healthy puppies. In this program, the Guardian family raises the puppy like normal while the AKC registration remains in the breeder’s name.
Just like buying a puppy, the Guardian is responsible for the daily care, veterinarian costs, food, maintenance grooming, training costs, etc. The Guardian is also responsible to put at least five AKC or UKC titles on the puppy. The title(s) can be in conformation and/or performance sports including obedience, rally, agility, tracking, hunting, fly ball, therapy, etc. Although not required, we do prefer people who have previous dog experience. Of course we provide guidance with any questions concerning the dog sport world. We often also offer to handle the puppy in the show ring as needed. Putting a title on a dog proves the animal is stable, intelligent, and can work in a stressful environment. We can offer show grooming until the puppy finishes the Championship title as most pet groomers are not familiar with show trims.
As the breeder, I pay for all health testing associated with breeding, initial AKC registration fees, microchip, and housing and care while being used for breeding. If all the health testing, performance, structure, and temperament shows the puppy is of breeding quality, they might become an active part of our breeding program after 2 years of age. The dog will return to us for breeding. Males are only needed for a couple days typically. Males may be kept intact for up to the age of 10 years old. We do not have behavior problems with our intact males, but we will not allow a Guardian home to have a male if they also have another intact female of any breed to prevent accidental breeding.
If the puppy does not prove it is a good breeding candidate or when it completes its breeding career, it will be neutered and live out its life as a cherished family pet. At that time, all AKC registration paperwork will be changed to reflect that the Guardian is the sole owner of the dog. Your home is their home for their entire life.
Guardian homes must stay in regular contact with us and should be within a 2 hour driving radius of our home. The Guardian program is excellent for people who want to show their puppy in dog sports at a reduced price for their puppy. It is a partnership with the guidance and mentoring of an experienced breeder. Guardian homes are an integral part of the family! As an incentive, Guardian homes receive a $800 discount off their puppy. We only offer one Guardian puppy per litter, so please let me know if this option sounds like a good fit for you.