Wednesday, July 17, 2024
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Buying something and selling it for profit to the same person

Fatwaa ID: 2362

السلام عليكم ورحمة الله وبركاته

My friend (muslim) has a neighbour (non Muslim) who constantly has cash flow problems. As a result the neighbour sells stuff to him, like her car or watch for instant cash. She then purchases the item back at a later stage, sometimes weeks or days later, at a higher price than she sold it.

It is not a condition that he must sell it back to her. However they both have this understanding that he will. This is basically like a reverse īnah transaction. What is the ruling on these transactions and what should he do with prior money earned from such transactions?

Many darul iftas in South Africa are closed during the darul ulooms holiday period and so I have not submitted this question to any darul ifta in South Africa.

جزاك الله خيرا

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

In principle, a buyback clause or agreement, is contrary to the dictates and values of a sales. It renders the sales faasid. Such an agreement or transaction is haraam. The buyer has the right to sell and do as he wishes with the item he purchases unconditionally. If the buyback is not a written condition at the time of the sales but it is mutually understood or expected, then that too will not be permissible. That which is customarily known is like that which is explicitly stipulated. However, if there was no condition at the time of sales and the buyer voluntarily promises later on to sell it, then that will be permissible. He may sell it at any price he wishes.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

11/16/1445 AH – 05/24/2024 CE | 1093

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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