What happens when a buyer does not pay? Is a buyer obligated to continue with the sale and purchase?

When a buyer makes an offer that is accepted in a classified; or places a bid over reserve in an auction, it is safe to assume that they are very interested in purchasing the contents of the listing. However, sometimes a buyer will need to cancel the sale.

Summary:

  • Buyers are discouraged from backing out of a sale
  • If a buyer does back out of a sale, the seller can relist for free
  • Repeated sale cancelations can result in sanctions being applied to a buyers account

Detail:

Once an offer or a bid has been placed a buyer should proceed with and complete the sale to the best of their ability.

Flippa does respect the fact that there may be situations that arise which cause a buyer to no longer be able to - or no longer want to - proceed with the sale. These include, but are not limited to:

  • The buyer coming into possession of additional information about the seller or any part of the listing that changes the perceived value or desire to continue with the sale
  • Changes in personal or financial circumstance that results in the buyer being unable to continue with the sale

If a buyer does change their mind about continuing with a sale and either payment has not been made or payment is still held in escrow with no assets transferred, the sale can be cancelled and the seller can relist for free.

If payment has not yet been released to the seller and assets have been transferred to the buyer, then these need to be returned to the seller in the same state that they were transferred with the seller confirming return and condition before any payment is refunded back to a buyer.

If there is any disagreement with regards the return or condition of transferred assets, any payment held in relation to the sale will not be released to any party until there is agreement between both parties on a satisfactory outcome. If no agreement is possible Flippa recommends independent arbitration or legal advice is sought to try and resolve the situation.

Please note that repeated sale cancelations can result in sanctions being applied to a buyers account up to and including a permanent ban.

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