Ebay Buyer with Cold Feet..Paid but now wants to renege

[icydog]

Hi I would appreciate any help I can get with this.

I sold a Royal Holiday 15K contract on Ebay for .01. The buyer and I are splitting the closing and Royal Holiday Fees, $400 to each of us. The buyer paid me $400 on PayPal two weeks ago. I left it with Timeshare Transfer and went on vacation to one of my DVC resorts where I am right now. I paid Timeshare transfer the full amount to close this. I thought everything was done and that was the end of the story.

Last night I got this email from the buyer telling me her husband will kill her when he finds out she bought a timeshare because she thought she was only expressing interest in the property and that she is not sure she wants the timeshare at all. She also said she doesn't want any docs in the mail because she doesn't want her husband to know. As I said, she has already paid me the $400 and I have already paid timeshare transfer.

I wrote her back and said she is now the owner of the property since by sending me the money in paypal she in essence, and actuality, agreed to the deal. I really never expected anything like this. Even though it is true a timeshare auction is not binding 1. She paid me 2. I wrote all over my auction that I expected to be paid if the auction was bid upon and 3. She told me she was going to pay for the timeshare, which she did.

I have since written to ebay to have them remove my bank accounts from my automatic transfer in hopes they will not take the money back from me in Paypal. Is there anything else I should know or do in a circumstance like this? I am so bummed out. I thought I finally put this small contract to bed and then this happens. Now, what do I do?

As always thanks for your help with this.

Marylyn

 

[dwsupt]

Done Deal

Marylyn- I agree with you that it is a done deal. I would explain that the $400 was passed on to the closing company and she has two choices; 1) forfeit the $400 to the deal, or 2) go through with the sale and be the owner of the property. I would further more tell her that if you experience any further pain and suffering you will contact her husband about paying damages. This threat may be enough to push her into finishing what she has started.

I would log into paypal and remove all payment methods as well. I don't know what else to try. Sorry for the duds out there.

 

[MaryH]

Icy Dog,

Sorry about the trouble. How long after the bid did the purchaser sent the e-mail wanting to back out?

I would take the position that they paid and it was only $.01 so if she paid $400.01 she had completed the purchase. But I am not positive if under timeshare law if they have the rescind period for resale too.

So are you getting rid of all your RHC contracts? I have a unifed 90K and are making it work for me but I am finding availability thinner and points higher then we started but still get enough use out of it to justify the 1500$ M/F.

 

[T_R_Oglodyte]

IMHO - after having sent the money to complete the deal, it's disingenuous to try to say that was only an expression of interest. If I go to a travel agent, for example, and give them payment in full for a cruise, I'm doing a bit more than "expressing interest".

 

[icydog]

Marylyn- I agree with you that it is a done deal. I would explain that the $400 was passed on to the closing company and she has two choices; 1) forfeit the $400 to the deal, or 2) go through with the sale and be the owner of the property. I would further more tell her that if you experience any further pain and suffering you will contact her husband about paying damages. This threat may be enough to push her into finishing what she has started.

I would log into paypal and remove all payment methods as well. I don't know what else to try. Sorry for the duds out there.

I just removed all bank accounts and credit cards from my paypal file. I'm so glad you mentioned this. I had written to ebay asking them to remove my bank account from their records. This was so much easier and faster. Thanks again.

 

[icydog]

Icy Dog,

Sorry about the trouble. How long after the bid did the purchaser sent the e-mail wanting to back out?

I would take the position that they paid and it was only $.01 so if she paid $400.01 she had completed the purchase. But I am not positive if under timeshare law if they have the rescind period for resale too.

So are you getting rid of all your RHC contracts? I have a unifed 90K and are making it work for me but I am finding availability thinner and points higher then we started but still get enough use out of it to justify the 1500$ M/F.

Yes, this was my last one. I sold the two weekly contracts. They were the ones that got me such good vacations but I had to pony up 1/2 of the fees to get rid of them as well.

 

[UWSurfer]

I wonder if we'll see the purchasing party with a guest account asking how to get out of an e-bay sale in the coming days?

 

[bnoble]

I would explain that ... she has two choices; 1) forfeit the $400 to the deal, or 2) go through with the sale and be the owner of the property.

I think this sounds about right. Might be tricky if you don't also have a signed contract, but possession is 9/10ths of the law.

Ask her if there is another address to which you can send the documents. She may go along if there's a way she can put off notifying the darling husband.

 

[london]

Let Her Out With Cost

I would let the buyer out, provided she pays you all costs incurred by you to date.

Probably, the best resolution in this case.

 

[chap7]

She bought it. End of story.

 

[lprstn]

Does she still have the ability to dispute this with the closing company? Does she still have to sign something?

If so, and she refuses...than its not hers yet.

 

[shoji]

I think the sale of real property must be in a writing to satisfy something called the "Statute of Frauds". If she has not signed a contract, I don't believe she is actually the owner of the property or can be forced to purchase the property.

Additionally, E-Bay specifically states that the bidding is not binding, so you can't honestly argue that she is contractually obligated to purchase the property.

Can you get the money back from the closing company? If so, I would just let her out of the contract and relist the property. If not, I would indicate that you have paid the closing company and they will not refund the money and that you can't refund her.

Kshoji

 

[JMAESD84]

Closing Documents

I've recently closed on one RHC points contract and have another in process. The closing company is TCS, Inc. and the package they required for RHC involves forms agreeing to the terms of RHC membership which must have two witness signatures and a notery stamp.

If the buyer has delivered all the properly completed transfer documents and paid in full, then it's a done deal. If not, you may have to find another buyer.

Good Luck

 

[icydog]

I've recently closed on one RHC points contract and have another in process. The closing company is TCS, Inc. and the package they required for RHC involves forms agreeing to the terms of RHC membership which must have two witness signatures and a notery stamp.

If the buyer has delivered all the properly completed transfer documents and paid in full, then it's a done deal. If not, you may have to find another buyer.

Good Luck

I wrote to Timeshare Transfer and asked them to email her docs again. I answered her that she would forfeit the $400 she's already paid and that it makes no sense not to close on this deal. I haven't asked Timeshare Transfer if they can refund the money to me because I assumed they wouldn't. I really want to be rid of these points and I thought it was a done deal over two weeks ago, Now I am at square one again.

 

[MaryH]

Icydog, I think you need to talk to the closing company to see that if the buyer would not sign the papers, would they refund part of all of your money.

I know when I purchased RHC, I had to sign some paper and get it notarized to say that I am responsible for the fees. RHC would not transfer without that since they need the guarantee that they will be paid.

Sounds like she had not signed it and have not even received the documents. You should also let her know that she has 2 options: 1) complete the purchase which is only 400.01 out of pocket to her or 2) forfeit the fees paid since everything is in process already.

RHC takes work to use... At least I can get decent multiple weeks out with a little work.

 

[yumdrey]

If buyer didn't sign the paper (contract) yet, you many need to relist it. But you don't have to give buyer refund. Call the closing company and ask if they give refund for the unfinished closing and promise them to use them again for the sale of this TS.
I think buyer would not expect refund from you, and closing company can give you partial refund or give you the credit for the next time use.
1) call closing company and void this transfer and ask about refund or credit
2) contact buyer and explain that there would be no refund.
3) report this to ebay and relist it for free

 

[MaryH]

I think yumdry is right, the TS closing company might not give you a refund but if they don't rather than asking for a partial refund, it would be good to keep it as a credit with the company for the next closing since you definitely want to sell/get rid of the RHC.

I think it is fair that there is no refund for the bidder. If they have a change of heart, it should have been done before she started payment. Considering some people are paying PC companies to get rid of the MF obligation, she is getting off lightly for the 400 towards aborted closing fee. If you relist for free in eBay and the new purchaser splits the closing cost with you, you actually end up not putting anything towards the closing...

 

[icydog]

I never want to go the ebay route again. I had to pay relisting fees and all the other fees to boot twice now on all three of my RHC contracts. I am sick of ebay.

But if anyone wants this contract for free, and the buyer is okay with leaving the $400 on the table, I will give it to you for nothing.

 

[shoji]

If you can get a refund, just refund the money and relist. You do not have a legal agreement and don't have a right to keep the money. THat is why it is called escrow.

If they only give you a partial refund, then only give the pro rata share back but you better show an invoice for what was kept by the closing company. The closing company should not be allowed to keep the full amount (or the majority) since they did not do anything.

 

[Quimby4]

If you can get a refund, just refund the money and relist. You do not have a legal agreement and don't have a right to keep the money. THat is why it is called escrow.

If they only give you a partial refund, then only give the pro rata share back but you better show an invoice for what was kept by the closing company. The closing company should not be allowed to keep the full amount (or the majority) since they did not do anything.

If the buyer initiates a dispute transaction or charge back with Paypal. Paypal will come after you in order to plead your case. If Paypal finds in favor of the buyer you will be required to refund her money. Even if you no longer have any bank accounts with Paypal, it would just be easier to refund the money if Paypal rules in her favor. Good luck, sounds sticky.

 

[icydog]

If the buyer initiates a dispute transaction or charge back with Paypal. Paypal will come after you in order to plead your case. If Paypal finds in favor of the buyer you will be required to refund her money. Even if you no longer have any bank accounts with Paypal, it would just be easier to refund the money if Paypal rules in her favor. Good luck, sounds sticky.

She says she will honor her commitments in one email and then in the next she just wants out of this. I am as mixed up as ever. I guess she could drag her feet until I lose patience.

She took over two weeks after payment to decide she didn't want this timeshare. Then she sends me an email saying she didn't tell her husband about the timeshare and that would cause troubles in her marriage. How can I be at fault in these circumstances? How can ebay or paypal fault me for that? I am going to contact the closing company tomorrow for their take on this. I'll let you know.

 

[ace2000]

What does the escrow company say about this? What happens to the $400?

You'll be able to make the right choice from there. The other advice you get from anyone else on this board is really not going to help you right now.

If the buyer has not signed anything, then you're going to have to relist it again.

 

[london]

I understand your concerns

Again, I would let the buyer out of the contract....you have a real mess on your hands.

Best to move on, and try to sell to another buyer....

I was contemplating selling a timeshare week on Ebay, but now have concerns about a buyer not going through with the deal.

I have had better luck selling on Redweek.

 

[tcornel]

Seems like there was offer, acceptance and consideration paid. It would be binding contract.

That said if she won't sign the transfer papers then you would have to seek specific performance from a court, expensive and the court will probably not give it.

Better to write her a letter telling her you will resell the property and she will be held responsible for all costs incurred to do so. Then resell it and deduct the costs from the 400 and bill her for the difference. You will never get it but it might be a defense if Paypal tries a chargeback.

Tom

 

[myip]

This is not the end. If she pays by paypal through credit card, she can dispute the credit card. The buyer will get money back from the credit card. YOur palpal account become negative value. Paypal will go after you for return of payment. I have payment before and contract before. Paypal go after me for money. Paypal will automatic charge back to your account if it is credit dispute. It is too much headache to go after the buyer. You will be lucky if the buyer agrees to pay you all the cost that you spent.