Deposit on vehicle sale

[Allen e Huffman]

Jurisdiction

North Carolina

I had a person give me a $1000 deposit check to buy a motorhome to hold it until he got money from his savings. The next day when he was supposed to complete the purchase, he cancelled his check and refused to purchase. I thought a deposit was nonrefundable, what options if any do i have to recover the deposit.

 

[army judge]

I thought a deposit was nonrefundable, what options if any do i have to recover the deposit.

Your thought may have been incorrect.

Deposits are often taken under the guise of being NONREFUNDABLE, but that isn't always true.

Generally, if the matter is litigated, courts dislike "unjust" enrichment.

If you sign a car purchase agreement for a nonrefundable deposit, you might lose the deposit.

Did you have a signed purchase agreement, which authorizes you to retain the check if the purchaser later decided NOT to consummate said purchase?

 

[Allen e Huffman]

Your thought may have been incorrect.

Deposits are often taken under the guise of being NONREFUNDABLE, but that isn't always true.

Generally, if the matter is litigated, courts dislike "unjust" enrichment.

If you sign a car purchase agreement for a nonrefundable deposit, you might lose the deposit.

Did you have a signed purchase agreement, which authorizes you to retain the check if the purchaser later decided NOT to consummate said purchase?

No, I made the mistake of taking him at his word. I also cancelled two other peoples appts because of his committment

 

[zddoodah]

I thought a deposit was nonrefundable

Why did you think that? What does your signed, written contract with this person say about this issue? If you didn't have a signed, written contract that covered this issue, what were the terms of your express verbal agreement about the circumstances under which the deposit would and would not be refundable?

, what options if any do i have to recover the deposit.

Small claims court. Did you really not know that?

One other question: In the time between when he gave you the deposit and when he told you he wasn't going through with the sale, did you lose the opportunity to sell the motor home to someone else?

 

[adjusterjack]

Lessons learned from the school of hard knocks.

1 - Never take a check. Cash only.
2 - Never take a deposit. Somebody offers one you say "No thanks, first person with all the cash gets it."
3 - Never take payments. You end up losing the Item and the money.
4 - Never hold anything for anybody after they pay for it. Let them put it out on the street until they can come get it. Then you're not responsible.

Obey those rules and you'll never have a problem selling anything because it will be out the door "as is" and all the money will be in your pocket.

 

[Allen e Huffman]

Why did you think that? What does your signed, written contract with this person say about this issue? If you didn't have a signed, written contract that covered this issue, what were the terms of your express verbal agreement about the circumstances under which the deposit would and would not be refundable?



Small claims court. Did you really not know that?

One other question: In the time between when he gave you the deposit and when he told you he wasn't going through with the sale, did you lose the opportunity to sell the motor home to someone else?

Really don't need a smart-ass response. Yes I know I could go to smalls claims, I wanted opinions on if that was a waste of my time. I did cancel appts for other people to see the vehicle, I have no idea whether they would have bought or not.

 

[Allen e Huffman]

Lessons learned from the school of hard knocks.

1 - Never take a check. Cash only.
2 - Never take a deposit. Somebody offers one you say "No thanks, first person with all the cash gets it."
3 - Never take payments. You end up losing the Item and the money.
4 - Never hold anything for anybody after they pay for it. Let them put it out on the street until they can come get it. Then you're not responsible.

Obey those rules and you'll never have a problem selling anything because it will be out the door "as is" and all the money will be in your pocket.

In other words, don't trust anyone. I get that, I just have a problem expecting that everyone will lie to me. Live and learn.

 

[justblue]

In other words, don't trust anyone. I get that, I just have a problem expecting that everyone will lie to me. Live and learn.

That isn't what Jack said. You can trust family...one would think. But it is foolish to trust a total stranger.

 

[zddoodah]

Really don't need a smart-ass response. Yes I know I could go to smalls claims, I wanted opinions on if that was a waste of my time. I did cancel appts for other people to see the vehicle, I have no idea whether they would have bought or not.

There was nothing "smart-ass" about my prior response. I asked absolutely relevant questions:

1. Did you have a signed, written agreement that covered this issue? If so, what does it say?
2. If you didn't have a signed, written agreement, did you have an express, verbal agreement? If so, what were the terms of that agreement?

If you "wanted opinions on if [going to small claims court] was a waste of [your] time," then (1) that's the question you should have asked, and (2) you should have answered the questions I asked.

 

[adjusterjack]

Yes I know I could go to smalls claims, I wanted opinions on if that was a waste of my time.

Yes, it would be a waste of time. You'd probably end up with a default judgment for a no-show and a judgment that is likely uncollectible.

Concentrate on starting all over again, using the precautions I listed and you'll get it sold. Craigslist is free so you really aren't out anything but your time.

 

[mightymoose]

There was nothing "smart-ass" about my prior response. I asked absolutely relevant questions:

The comment was regarding your "Did you really not know that?" question which you are prone to ask. It is easy to see why your comment would be viewed that way. It comes across as rude every time.

 

[justblue]

The comment was regarding your "Did you really not know that?" question which you are prone to ask. It is easy to see why your comment would be viewed that way. It comes across as rude every time.

Interesting. To me it just came across as curious. I guess it depends on what "tone" you read the comment with.

 

[adjusterjack]

I think all that can be said, has been said. Thread closed.

 

[army judge]

Hmmmm......