Refusing to sell to residents of a particular state

[WVBaker]

Need your thoughts.

Some listings on Ebay note that "Due to West Virginia guidelines on purchasing Real Estate; West Virginia Residents will not be able to participate in this Auction)". Only a few companies note this. Only one responded to my request for an explination and this was the reply. "It is our understanding from past experience that there are laws against WV residents purchasing real estate online."

I've lived in this state for over 25 years and have never heard of such a thing. I've never had a real estate agent tell me that. I've purchased other timeshares on the site, etc., etc.

Has anyone ever heard this before?

My understanding is, that in business, you can refuse to sell to anyone, but that refusal can’t be arbitrary and you can’t apply it to just one group of people. Declining to sell to someone must be consistent, reasonable and justifiable.

Any ideas on how to handle this?

 

[DeniseM]

Get a PO box across the state line.

 

[WVBaker]

That was my first thought Denise. Seems most want a drivers license, gas bill, tax forms, etc. upon completion.

 

[ssreward]

WV has many state specific requirements as outlined in their timeshare act:
http://www.legis.state.wv.us/WVCODE/ChapterEntire.cfm?chap=36&art=9
The major one I see is requiring the seller to be a licensed real estate agent. I doubt many resalers are, given few (if any) other states have this requirement. It's undoubtedly easier to just avoid doing business in the state altogether.

 

[davidvel]

My understanding is, that in business, you can refuse to sell to anyone, but that refusal can’t be arbitrary and you can’t apply it to just one group of people. Declining to sell to someone must be consistent, reasonable and justifiable.

I've never heard of such a legal doctrine, unless by group you mean a protected class: race, gender, national origin, etc. There is the 14th amendment (equal protection clause) for residents of a state but these apply to governmental entities.

You will routinely see contests, giveaways, car rebates, loan terms, etc. that exclude people of a particular state, so I don't think there is any prohibition on this.

 

[breezez]

A few states require you to be a licensed agent/broker to transact timeshare transactions unless you are the owner. While most brokers selling on eBay violate all sorts of rules, a few don’t want the head aches of dealing with states that require broker licenses.

It has nothing to do about them not wanting to sell to you.

One of the biggest ethical issues with these guys on eBay is the lack of separation between broker and closing agent, and in many cases escrow services.

That said I have purchased 4 from eBay all different sellers and all worked out okay. A bit harry at times and nothing in timeshare sales/closing seems fast.

 

[jhac007]

Need your thoughts.

Some listings on Ebay note that "Due to West Virginia guidelines on purchasing Real Estate; West Virginia Residents will not be able to participate in this Auction)". Only a few companies note this. Only one responded to my request for an explination and this was the reply. "It is our understanding from past experience that there are laws against WV residents purchasing real estate online."

I've lived in this state for over 25 years and have never heard of such a thing. I've never had a real estate agent tell me that. I've purchased other timeshares on the site, etc., etc.

Has anyone ever heard this before?

My understanding is, that in business, you can refuse to sell to anyone, but that refusal can’t be arbitrary and you can’t apply it to just one group of people. Declining to sell to someone must be consistent, reasonable and justifiable.

Any ideas on how to handle this?

This situation was discussed some time ago. I have purchased all my timeshares online and many from Ebay. The last two weeks I purchased were Marriott's Crystal Shores on Ebay, a high end product. It appears to me that there are no restrictions to prevent a consumer (WV resident) from purchasing on Ebay. However, I believe the issue is there a few vendors on Ebay that can't meet the the WV regulations therefore they make it appear as if we are not qualified to purchase. In other words they are not qualified to do business in WV and those folks can keep their product. Keep looking for something similar, it may take a while but the are plenty other vendors who are glad to do business with you.

 

[WVBaker]

If know off the top your head, which section number that under?

WV has many state specific requirements as outlined in their timeshare act:
http://www.legis.state.wv.us/WVCODE/ChapterEntire.cfm?chap=36&art=9
The major one I see is requiring the seller to be a licensed real estate agent. I doubt many resalers are, given few (if any) other states have this requirement. It's undoubtedly easier to just avoid doing business in the state altogether.

Thanks, quite a long read. I would imagine if it's a, "condominium fee ownership time-sharing plan".

 

[ssreward]

License required to sell is 36-9-18.

It definitely is quite the read, lol! And I wish all states would follow their example - it's a very nicely organized & easy to navigate page! Makes it easy to find anything you might want to know.