I don't need to google it. I was told DIRECTLY BY PAYPAL that they do not do this. This is often a tactic used by scammers in order for them to get stuff shipped out before the payment is sent ("Please send package and get a tracking number before paypal releases funds" then the funds never come and the items already shipped because you can't get a tracking number without actually shipping the item)....THIS IS WHY THEY DONT HOLD FUNDS.
Now in your case, this would benefit HIM not YOU, so I doubt you are trying to scam anyone...If anything given the situation, I would say YOU are getting scammed.
But I still stand by my statement that paypal does not hold funds...Maybe they have, I'm certainly not all knowing, but their policy states that they do not, and I have spoken directly with representatives on this issue via email and they have confirmed what I am saying.