Reselling items not in your possession

[ChrisCavalier]

Hello Everyone,

As a side topic alluded to in a previous thread, I wanted to make sure collectors are aware there is a possibility you may be dealing with someone who is looking to resell an item they do not physically have in their possession.

Please note I am not stating that was the backdrop for why the item was returned in the thread that was deleted. In fact, the buyer claimed there was a different reason for the item being returned (determining whether true or not is outside of the scope of this forum). However, I think it is very useful for collectors to be aware that there are people in the marketplace who may be looking to resell items that they do not have in their possession.

While some people do not have a problem with the fact that people are looking to act as a type of "broker" or that they are looking to "flip" an item for a profit, I think it is worth noting that there are possible implications that might be inherent in that type of transaction. For example, if the item is not physically in the person's possession when they are looking to sell it, they may not be able to accrue the item even after a deal is reached. Or, if they are buying an item from you for resale, they may not come through if their buyer backs out of the resale arrangement.

While I do not believe it is illegal to look to resell items you do not have in your possession, I highly suggest you clarify with the other party up front if they physically have the item they are looking to sell or if they are looking to resell it if they are buying from you. Regarding the latter, I would also highly suggest you define any return policy up front, including requirements for a return (like a rejection letter from an authentication company, etc), to make sure there are no complications later.

Happy to hear members comments on the topic. However, please note this thread is intended to be an educational thread and not one to grip about previous transactions or make accusations toward other parties. There are many collectors who may have limited experience in the buying/selling process and this thread is designed to help educate them on possible implications and the thread will be moderated as such.

Thanks in advance for your cooperation.

-Chris

[Roady]

I would think that selling something that you do not own is illegal.

[ChrisCavalier]

I would think that selling something that you do not own is illegal.

There are plenty of people in the marketplace who act as "brokers" which I do not believe is illegal. If an authority on legal matters has additional perspective, please feel free to provide that information.

-Chris

[KGoldin]

Offering it for sale is not illegal
Concluding a transaction and taking someone else's money with no intent to deliver is. Illegal.
In the trading card world ( more then gu) there are Many well known "brokers" that run web sites listing cards for sale they do not own, but supposedly have permission to list. The famous t206 honus Wagner listed on eBay ( psa 1) is not owned by the person listing it, nor is it in their possession.
I had a problem with one of these brokers when a card that was consigned to Goldin Auctions was listed on their web site for sale while my catalog was going to press! Apparently they had it listed there for several weeks before the consignor gave it to me, and I had to call them and my consignor to have it removed.
It is frustrating as hell, but these people try to insert themselves into a transaction without laying out any cash, without overhead and without the risk of carrying inventory. As long as they actually deliver what is sold, there is no legal issue. Many ( including me) may dislike the practice, but it is more common then you think especially on the card side , and not illegal unless they do not perform.

[Steeleraddict]

Well said. It's exactly like the car dealer that says, " yeah, I can get you that 2014 range rover." which he does not have on his lot. and takes your money. Paid, done deal. Now it's on him to deliver and complete the deal. Meet the criteria of the contract. Or else it's fraud. But not illegal if he finds you one.

[Takuleechch]

When you say outside the scope of this forum does that mean that no one here could have helped solved the problem?

[ChrisCavalier]

When you say outside the scope of this forum does that mean that no one here could have helped solved the problem?

No, I am saying trying to determine whether or not the stated motives of the buyer for returning the item were true was outside the scope of the administrators of this forum.

Please note the rationale for why that thread was closed has been explained already and is NOT the topic of this thread.

Thanks,
Chris

[Takuleechch]

WOW sorrryyy was just asking a question about your post on this thread

[Takuleechch]

Flipping items isn't new and isn't illegal. That from what I've been told that issue wasn't raised recently. People do it all the time
In fact I always see people on this forum offering "finders fees" to people who can find them an item which in a way could be considered the same thing

[Roady]

There are plenty of people in the marketplace who act as "brokers" which I do not believe is illegal. If an authority on legal matters has additional perspective, please feel free to provide that information.

-Chris

The only way I can see it being not illegal is if the original owner knows what is taking place and give his/her approval.
This isn't the stock market.