Results 1 to 2 of 2
  1. #1
    Join Date
    Feb 2013
    Posts
    1

    Default Do I Have to Refund the Deposit from a Car Buyer Who Changed His Mind, Sold Via eBay

    My question involves a consumer law issue in the State of: Oregon

    In late December 2012, I sold a boat on eBay Motors. The terms of the sale (as per my item description) were that a $2,500 deposit was due within 72 hours of the auction close, and the total balance was due with 10 days of auction close. I also stated clearly in the auction that the boat was for sale "As is, where is with no warranty offered or implied." The boat had recently been inspected by a certified boat surveyor (at a cost of over $2,000), and I emailed a copy of the survey to the buyer a few days before his winning bid.

    He did pay $500 of the $2,500 deposit via Paypal right away, but it was over 15 days before he paid the $2,000 balance of the deposit--but he did finally pay it via Paypal after I asked him to follow through with the sale or I would go to the next highest bidder because he was not following through on the terms of the sale. While I did not state in the item description that the deposit was non-refundable, he did ask me on the phone before making the additional $2,000 payment whether the deposit was refundable or not and I said, "no, it's non-refundable. The boat is sold as is-where is, there would be no cause for you to reject the boat. The boat is being sold for 1/4 of it's appraised value in order to make a quick sale and I provided you with a copy of the recent survey which details the condition of the boat." The buyer agreed, and sent the $2000 deposit balance due via Paypal.

    After making the full deposit, he started demanding that he be able to take the boat to a yard for a full inspection and complete a sea trial (test drive) prior to making full payment. I told him that would be extremely difficult as the boat and I are on opposite coasts, and, reminded him that it had just been inspected by an accredited boat surveyor. We went back and forth on this for several weeks. Other than not being the terms of sale we had agreed to, one of the big problems is that the boat is quite large and the nearest yard that could haul the boat was 12 hours away and they were booked for many weeks. I told him over and over that the terms of the sale were "as is-where is" and that the price (about a 1/4th of the appraised value) was set in order to conduct a quick sale.

    As little as a 4 days ago he was promising (via email and phone) to go up to the boat to check it out (he's never seen it) and then overnight the cashier's check for full payment, but he's been doing that for weeks and payment has not been forthcoming from him.

    Today, out of the blue, I get a notification from Paypal that he has initiated a charge-back against my Paypal account for the deposit funds because he "never received the item." Well, of course he never received the item--he never paid for it!!

    He has yet to give me any reason for why he is not going through with the sale, but, his banker informed me today that the buyer had found a great deal on another boat and that was why he had been stalling and now wants to back out of the sale. You only have 45 days to open a case through eBay and Paypal, and it's been over 50 days so neither one of us can file a claim through eBay or Paypal--or so I thought.

    During the 50+ days since the auction close, I have paid well over the $2,500 deposit amount in slip fees, taxes (annual taxes became due on 1/15 they alone were $6k), insurance, etc., on the boat. I spoke with a rep at Paypal today, and they were very vague, saying only that I needed to respond the chargeback case and detail what happened, and, that the buyer's credit card company would ultimately decide if the charge-back request was valid or not. The Paypal rep went on to say that if the buyer's credit card company found in the buyer's favor (no bias there....), that I would be liable for the $2,500.00, and, if I didn't pay it (I transferred the funds to my bank account several weeks ago) that Paypal could go after me for the money and ruin my credit! Paypal has now frozen my account and there is a -$2,500 balance showing.....

    So, my questions are:

    1. I am under any legal obligation to refund the buyer's deposit?

    2. Can Paypal take action against me (either closing my account and/or turning me over to collections for the money even though A) it's past the 45 day dispute period, B) the buyer made the payment knowing it was non-refundable, and C) the buyer has never set foot on the boat and has no basis for defaulting on our original deal?
    3. Can I sue to try and force him to complete the sale like he agreed to?

    I apologize for the long post--thanks in advance for your help!!

  2. #2
    Join Date
    May 2008
    Location
    Louisville, KY
    Posts
    1,877

    Default Re: Do I Have to Refund the Deposit from a Car Buyer Who Changed His Mind, Sold Via e

    1. Probably.

    2. Paypal appears to be its own separate entity and can do what they like. Never underestimate what Paypal might do...

    3. You can. Are you planning to travel to where he lives?

    1. Sponsored Links
       

Similar Threads

  1. Private Sales: Sold a Cell Phone, Buyer Wants a Refund
    By sjman in forum Consumer Law
    Replies: 1
    Last Post: 07-20-2012, 08:05 AM
  2. Purchase Contracts: Buyer on a Lease Purchase Contract Has Changed Her Mind About Buying the House
    By pjhaight22 in forum Buying, Selling and Conveying Real Estate
    Replies: 4
    Last Post: 02-28-2012, 06:54 PM
  3. Rental Agreements: Gave Security Deposit, Signed Lease, then Changed Mind
    By renaissanceproperties in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 07-28-2011, 08:15 AM
  4. Replies: 1
    Last Post: 02-24-2011, 08:42 PM
  5. Computer Crime: Item Sold Outside Of Ebay, Buyer Reversed Payment
    By n.smith360@gmail.com in forum Criminal Charges
    Replies: 6
    Last Post: 05-27-2008, 05:36 AM
 
 
Sponsored Links

Legal Help, Information and Resources