Overhaulin'

Do I have the right to cancel a car sale after taking security deposit?

I was going to sell my car but due to personal reasons, I now need the car. I took some security deposit from the buyer before as the car title transfer won't be initiated until end of the month. I am now thinking of returning the money back to him, and telling him that I need to cancel the car sale. Is this OK legally?

Public Comments

1. If the car was not paid in full and title has not been transffered yet, I think you can legally return his deposit. The car is only transferred when he signs the title.
2. You should be able to return his deposit and cancel the deal as long as the title has not been signed over. Since you have not received full payment, that should not have been done. He may be upset but just let him know your situation has changed.
3. did you sign the title over? if so i think it's a done deal. if not then kiss his/her ass and beg for mercy