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Do I have to refund deposit for car in Maryland?

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feelscrewedinMD

Junior Member
I accepted a $1000 deposit on my car and we agreed on $5300 to be paid after the car passed inspection. I told the buyer that he had to pay for the inspection and we would negotiate the sale price from there if work needed to be done. They took the car to a dealership and told me that the car needed $1200 in repairs. I was surprised he had taken it to a dealership for the inspection because I think the prices are always inflated car dealerships. I said that I thought that was crazy and I took the car to a mechanic who did the repairs necessary for the car to pass inspection for $650 and also paid for a certificate of inspection. After the work was done, the buyer told me he would come back for the car today. Today, he told me that he changed his mind and he wants his deposit back. I only paid the money for these repairs because he was buying the car. Do I now have to refund the deposit?? He acts like I am trying to rip him off when I think I have been more than fair.
 


cosine

Senior Member
What terms of forfeiture did the deposit contract say?

Maybe the repairs you had made were not as good as he'd like. But for sure, we're now talking about a car in a different condition than when the deposit was agreed to. Just return his deposit and try again to sell the car ... now in better shape than before so it should be easier to sell and or get a better price.
 

feelscrewedinMD

Junior Member
There was no written contract. I know - dumb move. I am not asking the "easiest" thing to do - I am asking what my legal obligations are. I spent a lot of time and money on the car this week only because they were buying it.
 

BL

Senior Member
There was no written contract. I know - dumb move. I am not asking the "easiest" thing to do - I am asking what my legal obligations are. I spent a lot of time and money on the car this week only because they were buying it.
You have no contract.

Next time get it in writing .

I presume everything is still in your name and you had it repaired and inspected .

You initially told the prospected buyer to take it and have it inspected .If it did not pass then you'd refund .Then you said you told him if it needed repairs you'd " work it out ". But didn't say how.

Then you took the vehicle back and had it done on your own .

You went against your own verbal deal and gave the prospected buyer the run around .

Refund the deposit like advised and resell it .

BTW this prospective buyer is out of the repair estimate cost .

Yes dealership cost are higher ,but they are certified an usually DX properly .
 
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feelscrewedinMD

Junior Member
Thanks for your reply. No, I never said the deposit would be refunded under any circumstances. What I said was that we would adjust the sale price depending on what came up in the inspection. I told them I was having the work done at another place and they never told me not to do it. They even said they were picking it up AFTER I had the work done. It was 3 days later that they changed their mind. I, personally, don't know anyone who has routine repairs done at a car dealership. They are notorious for charging more than necessary and coming up with innecessary repairs. Even the inspection was $99 vs $65 at any other inspection station.
 

Mass_Shyster

Senior Member
If you had a valid contract to sell the car (which seems questionable) and the buyer breached the contract, your duty is to mitigate your damages (sell the car for as much as you can) and return the deposit, minus any losses, to the buyer.
 

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