I transferred 10k the first time as a deposit and then I transferred another 20k. Until now I never signed any paperwork regarding the business. Now for some reason, I want to cancel it and she said I wouldn't get my money back. What can I do under Australian Consumer Law?
WA Australian Consumer Law - How to Get Deposit Back from Seller?
- Thread starter Napitupulu
- Start date
Your position is not good as a starting point. Deposits are allowed to be kept by the seller as a default position. Generally deposits less than 10% can be kept.
There are exceptions where deposits may either be returned in full or in part. Go to a legal community centre for advice, or see a lawyer. And do it quickly before she spends all the money.
There are exceptions where deposits may either be returned in full or in part. Go to a legal community centre for advice, or see a lawyer. And do it quickly before she spends all the money.
How strong is my position? In the beginning, she said I can get my money back if I don't end up buying her business, but now the reason she can't give a refund is because she already used all the money to pay her bills.
Really appreciate your help, Rod.
Really appreciate your help, Rod.
I think you have a strong position, deposits are actually refundable if no contract has been entered into, since you have not signed any paperwork and she has advised deposits are refundable you should be able to obtain a refund in full.
Did the seller advise that refund would be refundable in person or email? Did you agree to purchase the business and have now changed your mind?
Did the seller advise that refund would be refundable in person or email? Did you agree to purchase the business and have now changed your mind?
S
Sophea
Guest
If you are purchasing a business, chances are Australian Consumer Law doesn't apply and yes deposits are generally non refundable in change of mind situations. However if there is something unconscionable about the way the seller has behaved or if they have been misleading with information or something then maybe a different situation altogether. We need more information to provide the correct info.
Great info re unconscionable conduct Sophea, I agree ACL does not apply here, and if it did, I agree it would not be refundable. Agree more information is necessary however in the absence of such information, and if no evidence/records can be produced to the contrary, the assertions made by Napitupulu that the seller stated the deposit was refundable are certainly enough to warrant lodging a claim, that is in my opinion of course.
If the seller wanted to make deposits non-refundable she should have had Napitupulu sign an agreement to that effect. In my opinion, the apparent informality of the situation gives more weight to the buyers argument than the sellers. Nonetheless, prima facie this is 50:50 and more information is definitely necessary.
If the seller wanted to make deposits non-refundable she should have had Napitupulu sign an agreement to that effect. In my opinion, the apparent informality of the situation gives more weight to the buyers argument than the sellers. Nonetheless, prima facie this is 50:50 and more information is definitely necessary.
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