Deposit - Do you keep it if sale falls through?

[merlin]

So I had two bikes (a 250 and a 600) and no car, now have bought a BA ute and am selling one of the bikes (the 250). Had it advertised on another forum for $3,000 and one guy (lets call him Fred) was really interested (though he didnt have a license). Anyway showed him the bike ect. and he said he was going to go do his 2 day RTA learner course and get back to me. Meanwhile a few other people were interested and posted up saying could they look at it. When Fred saw these replies he rang me in a panic and said don't sell it to them I will put down a 10 percent deposit. So I say OK and he does an internet bank transfer to my account.

Now I havn't heard from Fred in a week or so and I email him and he says he failed the L test (what the $%, it SOOOO easy, P's are the hard one), and he isnt going to get a bike.

Hmm in the meantime I have turned down 4-5 enquiries about the bike and knocked back 1 cash offer as Fred already had a deposit down. So should I give Fred back his $300 or do I get to keep it - advice I have had so far is that I keep it. What would you do?

[GreenMachine]

Keep it - that's the point of a deposit - It's compensated for the time you've spent dealing with the clown, and the opportunities you missed to sell it earlier.

[Mechan1k]

Deposits are usually non-refundable.

[EA2BA]

I say keep it, unless one of the other buyers can be contacted and they pay up straigth away (then possibly I might give it back), otherwise the $300 covers your wasted time and re-advertising costs etc.

[Inferno]

Businesses do it all the time, sometimes as security, usually to cover a freight cost or something like that. When I called Ford about an XR bar they said, yeah, that's fine, we'll get it over for you from Melbourne, but if you change your mind we want $100 as a deposit, non refundable. That is your money, keep it.

[falcon91]

Originally Posted by EA2BA

I say keep it, unless one of the other buyers can be contacted and they pay up straigth away (then possibly I might give it back), otherwise the $300 covers your wasted time and re-advertising costs etc.

I totally agree!

[parawolf]

A deposit is security to prevent other buyers from purchasing the item from under them. If they then do not want the item they forfeit the deposit, unless the item turns out not to be what was advertised, or not available at the time they want to buy it.

So basically, if they stuff up, you keep the deposit, if you stuff up, they get the deposit back.

[EBII Fairmont]

Depending on the situation. I put a deposit on a car, and when i called him later, after his son agreeing to have the car checked, the father cracked it and tolled me to ИИИИ off. He tried to keep the deposit and when a lawyer sent him a letter that he didn't fullfil the contract by letting me get the car checked he handed it back over.

If this dude is just being a tyre kicker, stuff him. Did the contract have by any chance a certain he had to pick the bike up by. If so tell him to get lost and its his loss.

[parawolf]

EB: but you described what I mentioned, if the seller stuffs up - then you get the deposit back. eg in this case he didn't fullfill the contract of sale which was to get the car checked. So rightly you got legally involved and got the money back.

[Discovery]

My personal rule is to take the cost of the ad I took out and the same again to readvertise it. If there's any left over I'd give that back. Have only ever had one fall through though and have sold a lot of cars.

Maybe i'm too nice..

[HSE2]

I would give it back

[chief]

I would keep the deposit. That is what the deposit is for. If you feel symphathy for the guy maybe (and thats a big maybe) give him say $100 back. But I would keep the full deposit. You have had to reject offers becaus eof this guy.

[svo347]

Originally Posted by Discovery

My personal rule is to take the cost of the ad I took out and the same again to readvertise it. If there's any left over I'd give that back. Have only ever had one fall through though and have sold a lot of cars.

Maybe i'm too nice..

Nope thats what Id do too.

[brenx]

Deposits yours but only if you stated it was non-refundable at the time. If I leave a deposit on something. I generally tell the owner they can keep the deposit if I change my mind. I consider it compensation to cover costs of advertising and their time.

[merlin]

Interesting keep it coming...by the way there was no contract - simply a couple of PM's along the lines of "if you put down a 10% deposit, I won't sell it to anyone else". I never told him it was non-refundable and he never asked about it. He simply sent me the money.

[HSE2]

And that’s why I said what I did. I assumed that there was no or not much in the way of advertising cost due to the forum nature and he acted in good faith. I would assume he was genuine and move on.

[pauljh74]

What this guy would have needed was to add terms to the sale - ie if he fails his learner's, he gets his deposit back and you to agree to it. Or one I do usually is a condition for a car to get a result satisfactory to the buyer on a professional inspection. If not, get your deposit back. But in this case, the guy put a deposit down on a bike, then due to his own issues, changed his mind. He should have secured his learner's first, then looked for a bike. Or simply parked his purchase until he got his Ls. It's not your problem.

[rag top]

I'm in a similar situation, but the deposit was $3k on a $4k car.
The purchaser, after a few months, now wants me to sell the car on his behalf, and he still owes me $1k.

What I'll most likely do is to keep $500 for stuffing me around, and give him $2500 back.

[Thunder]

"Fred" said not to sell it, thats why he put down 10%. Fred wanted the bike and intended to buy it, thats why he put a deposit down for 2 reasons.

1. to show he was genuine.
2. to prevent others from buying.

Thats what a deposit is for. In business its NOT refundable unless stated elsewhere.

I would not refund the deposit.

[eb91xr6]

Keep it, u just got $300, spend it on your G/F or wife, it was a deposit there for it is yours, he can ask for it back and you can tell him to ИИИИ off

[svo347]

I guess from all the posts here its up to you...
The guy was genuine, and had abit of bad luck so it all fell through.
simply mate its how you feel , put yaself in his shoes $300 aint that much but its not a tiny amount also.
you'll still end up selling the bike for what your after, ...
so the bigger question is...
Would it be Australian to keep it or give it back......

[Smoke Pursuit]

Depends how tuff Fred is, if hes a big basket with tatts and a harley id happily refund his deposit before he comes and breaks down your front door, if hes a doofus and you dont feel threatened by him keep it.

As they say sometimes its cheaper just to let the other party win even tho they are perhaps in the wrong...

[Thunder]

Originally Posted by svo347

..................Would it be Australian to keep it or give it back......

Oh please. Thats a silly comment. Is it "un-australian" when you buy a house at auction, give your deposit, then realise you cant pay the rest and the real estate agents starts laughing at you when you ask for the deposit back? ........

I agree that if "fred" asks for it back then a good responce would be to give it to him after the bike is sold. I think that is fair. It makes sence that if you recived the price you wanted to sell it for, then after that you can return the deposit to fred. Im sure fred know he has stuffed up and realises that you are not required to return it. Im sure he would understand this senario.

"Un-Australian" to not give a deposit back. Whats next? Its un-australian to return videos to blockbuster?

[svo347]

Mate we are not talking thousands of dollars, nor are we talking realestate, this was a private arrangement.
as for the vid remark you know where you can put it!!!

[Thunder]

Yeh...in the slot .......bahahahahah e

[Mr. CVE]

when I bought my car I actually bought one the day prior.
I put a $400 dep down on it, the next day there was a better car in the paper and i bought that one, i called the guy who I had left the deposit with less than 24 hr prior and told him, he was upset, I did say he can keep the deposit. it was my error soI bear the cost. otherwise the whole deposit thing isn't really worth anything.

[svo347]

Right on....

[fiery]

It really comes down to if you can sleep at night knowing you didn't say the deposit wasn't refundable.
But on the other hand if the guy never asked if it was or not then again, its something that you and only you can decide is the right thing or not.

I don't know personally what the right thing to do is, there is some good points for not giving it back and some good points for giving it back.

Have you spoken with the guy in question about the whole deposit thing? Maybe he doesn't expect it back!!!!!!!

[MAGPIE]

What I would have done is to take the deposit but make it clear the bike is still For Sale, but he gets first refusal if another buyer comes along. So if another buyer is definately going to buy it he's got the chance to come up with the cash & buy it or declines, if the second buyers completes the deal, you then return the deposit to the first guy.

But at the end of the day I would give it back if I sold reasonably quickly or give it back less advertising costs.

[AUXRVIII]

Originally Posted by MAGPIE

What I would have done is to take the deposit but make it clear the bike is still For Sale, but he gets first refusal if another buyer comes along. So if another buyer is definately going to buy it he's got the chance to come up with the cash & buy it or declines, if the second buyers completes the deal, you then return the deposit to the first guy.

But at the end of the day I would give it back if I sold reasonably quickly or give it back less advertising costs.

I'm with this one also, sell the bike to another buyer.