Hi
Will I face problems if I start buying bitcoins by PayPal in localbitcoins I know when I am the seller (receiver of money) PayPal will ask what i`m selling and may close my account but what if I`m the buyer( sender of the money)?
You're unlikely to ever get suspended if you're using a third party site to buy coins. If anything, the site is the one that is taking most of the risk when selling bitcoin to you. You're not as likely to get your account limited at all. Established sites like Virwox shouldn't have any issues.
If you're trading p2p then it's a different story. I'd say you still got a moderate chance of getting limited, provided that you do trade with sufficient volume, and consistently have funds going out for crypto purchases. Once paypal finds out they could certainly block your account on the grounds of a terms and conditions violation.
I'd honestly not even buy BTC with paypal if I had alternative ways to do it. Paypal rates are consistently one of the worst. Use cash deposit and bank transfer. Not only will you get better rates, you don't need to worry about all this either.