Deposit Return

[valleydweller1]

Hi all,

I had my tractor for sale earlier this month when a gentleman from out of town (we'll call him John Doe) came by to look at it. He liked what he saw, we agreed on a price and he gave be a cash deposit of $100 to hold the tractor until two days later when he would be back with a trailer and the rest of the money.

Three hours later he called, rescinded his offer and asked for his money back. I have been resistant to returning the money. He has become incessant, to the point where he has found out where I work and has been calling my boss. I called my attorney and she advised me to return the money since I didn't write "non-refundable" on his receipt. Here is my letter to him. Let me know what you all think...





Dear Mr. Doe,

I spoke with my attorney and she advised that most small claims courts would rule that I owe you back your deposit of $100.00. She also stated that it was reasonable to deduct my expenses for returning the deposit. Since you have had to wait so long to get your money back, I spared no expense in returning it to you swiftly. Please find an itemized list of my expenses below.

Item

Envelope $0.10
Express Mail $16.25
Receipt Confirmation $2.15
Cost of Money Order $1.00
Mileage from home to the bank and back $12.62

Total expenses deducted: $32.12

Please find enclosed your money order for $67.88. My obligation has been fulfilled and I now consider this matter closed. Any further attempt to contact myself, my employer or any of my friends, family or acquaintances regarding this matter will be considered harassment and/or stalking and will be dealt with accordingly.

Thank you and good luck in finding the right tractor for your needs.


Best wishes,



Greg

 

[MrJimi]

Good one, I think you learned your lesson like I did a long time ago
congrats

 

[dknarnd]

Why sweat the small stuff...just give him the $ back. It was only three hours later that he called and changed his mind, the chances that you would have sold it in those three hours are slim. I would have asked him to come pick up his deposit, I would not go to the trouble of what you are doing.

And as far as the letter he probably won't even read it...the letter is just going to make you feel good.

 

[valleydweller1]

He lives a couple hours away. And yes, the letter does make me feel good.

Greg

 

[shvl73]

Three hours later he called, rescinded his offer and asked for his money back. I have been resistant to returning the money.

Why??
Anything could have come up. He could have incurrred a sudden expense. Return the $ and be done with it. Now. Today. You are prolonging this. Move on.

 

[LabLuvR]

I saw this type of activity a LOT when I was in the real estate business. You did not lose a sale in those three hours, therefore you have no loss, which is mainly what a deposit is about. You can make a big deal out of this in the name of principle but most likely I think this could blow up in your face. When people become angry they do irrational things. If it were me I would gladly refund his deposit and get on with my life,before this turns even more sour. Plus, your lawyer has already told you that man would get his money back in small claims court. Piss the guy off and this will be uglier than it is now. Just food for thought.

 

[LabLuvR]

Normally a deposit is for a seller to hold something for a given a period of time to secure said item from being bought by someone else. In real estate it is a big deal because a seller could have lost another potential sale while the property was being held. In this case, it honestly is very trivial and the seller would probably catch all **** from the judge for even bringing this to court if he tried. People have to learn to pick their battles. This battle is definately not worth it for seller. Since he in effect lost nothing, he should just give the money back.

 

[AndyMA]

Just return all fo the money and get over it. You are being trivial.

Andy

 

[YanmarFever]

Dont be a cheapskate

You're reputation is at stake

 

[john_bud]

All I can say is "goes around, comes around"

 

[CurlyDave]

For my entire adult life, I have tried hard to leave every situation in a way where no man feels that I have cheated him, or even shorted him a little bit.

I know I have left money on the table over the years, but the other side of that coin is that I have made many times more than I have ever left on the table. People seek me out for partnering in profitable business deals because I have a reputation.

 

[Harold_J]

Something I learned a long time ago is I NEVER take a deposit on anything.
The first person that shows up with cash gets the item.

 

[valleydweller1]

Ok, so the Priority Mail is a bit excessive; I was angry. But is this how business is often done? Someone puts down a deposit, then changes their mind and wants it back? There was no outside situation, no family crisis, he said he just decided after looking at other tractors that he didn't want my tractor. No big problem there, no tractor is perfect for everyone.

Every other deposit situation I've been in (Real Estate, Landlord-Tenant, etc...) if a person expects to be able to get their deposit back there is some sort of a contingency. "Must pass inspection", "contingent upon approval for financing", etc.

I'm about to have an open rental. I have someone lined up that's very excited to move-in. He put down a deposit for the rental; I agreed to take the rental off the market and deliver it in move-in ready condition by a certain date. If I can't hold up my end of the deal (if the rental isn't ready by said date) then he gets his money back. If the agreed upon date rolls around and he decides he doesn't want to move in then he loses his deposit. Either party has the option to extend the agreement in leiu of refund. Is this any different from the tractor situation?

Maybe things work differently where Mr. Doe is from (he moved over here from far away), and most of the replies in the negative towards me have been from his general area. Is this a common way to do business east of the Mississippi?

Greg

 

[crabjoe]

Maybe things work differently where Mr. Doe is from (he moved over here from far away), and most of the replies in the negative towards me have been from his general area. Is this a common way to do business east of the Mississippi?

Greg

I think it's you. You lawyer is probably from west of the Mississippi and they said to return the money.

Just return it and know that in the future, have things in writing, if you don't plan to return any deposit.

It's just the decent thing to do.

BTW, although not all business is done this way, when I bought my pickup, it was done on a handshake with a dealership. This was on a factory order because they couldn't find one equipped the way I wanted it. No deposit, not contract ... Just a handshake, and yes I am East of the Mississippi.

 

[Skyco]

I think it's you. You lawyer is probably from west of the Mississippi and they said to return the money.

Just return it and know that in the future, have things in writing, if you don't plan to return any deposit.

It's just the decent thing to do.

I agree with the above. I mean 3 hours? Come on...if it had been 3 days maybe...3 hours is petty.
Remember the Golden Rule.

 

[Hondo1]

Bad Karma there. Just remember it is a round world. That kind of get even mentality is why there are so many rich lawyers out there. What if your lawyer ends up sending you a bill for the phone call? You gonna argue that one? Then again with the attitude you are displaying you probably have them on retainer.

With that being said, I too have been burned by promises to buy or pay for something. It really doesn't matter what the other guy does as long as you do what is right.

Hondo

 

[putt_putt_green]

The buyer calling and threatening doesn't help the situation any. I'm not sure I'd want to give someone their deposit back after acting like that. Did you have any calls on the tractor during the 3 hours it was held on deposit? If so, don't send the deposit back. If you didn't have any calls in the 3 hours, send the money back via regular snail mail and subtract a dollar for the envelope, stamp, and check.

 

[Squeak n Itch]

We learned, while selling our own cars, that a deposit is the wrong way to go. If someone wants to buy something, sell it. We are all disappointed when the sale doesn't go through. Holding on to something for someone, unless a trusted friend, only prolongs or interferes with the sale.

 

[Soundguy]

I have to agree with some of the others... Just mail the guy his 100$ back and be done with the issue, try to think of it in a positive light. Never know.. something pretty bad may have happened to the guy.. like he might have went home and found out he had lost his job!.. and now that tractor purchase was a big no-no.. that 100$ may be nexts weeks ketchup and chicken broth for his family or something...

Sure.. it sucks.. but that's life...

When i take a deposit on an item for sale, and another person comes to look at it during the deposit period.. I usually take their name, and tell them that if the sale falls thru I will call them ASAP.. ( in the order that they showed up.. )

This kind of thing happens alot. A while back i noticed a relative was selling a ford 861.. I was no my way to work that afternoon.. stopped.. looked at it by the road.. liked it.. calle dthem on my way to work.. Told them it was 'sold' and that I would be by in the morning as soon as the bank opened with cash, and my trailer. 3hrs later at work they called me and told me they had just sold the machine.... go figure!

soundguy

 

[valleydweller1]

The buyer calling and threatening doesn't help the situation any. I'm not sure I'd want to give someone their deposit back after acting like that. Did you have any calls on the tractor during the 3 hours it was held on deposit? If so, don't send the deposit back. If you didn't have any calls in the 3 hours, send the money back via regular snail mail and subtract a dollar for the envelope, stamp, and check.

I did indeed have a call during the three hours; I told them I had taken a deposit and they said "thank you" and hung up.

Greg