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From the seller's perspective, you have agreed to a price, but that's not a deal unless you put down a deposit.
You asking for a PPI is certainly reasonable and expected but if there's another buyer who isn't needing that, is coming in person, and is potentially willing to purchase he has no obligation to you without you having given him a deposit.
He risks losing an easier sale with another buyer by telling them no.
If you put down a deposit he should absolutely honor that and not show to any further. Until that happens though I don't think he's done anything wrong...provided he's being honest about it and not just trying to get you to buy without a PPI.
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