It is narrated from Sayyiduna Abdullah bin Amr bin al-As (may Allah be pleased with them both) that the Messenger of Allah (peace and blessings be upon him and his family) forbade the sale of 'Urbun.
Hadith Referenceالفتح الربانی / كتاب البيوع والكسب والمعاش وما يتعلق بالتجارة / 5874
Hadith Gradingمحدثین:ضعیف
Hadith Takhrij«اسناده ضعيف لابھام الثقة الذي رواه عنه مالك۔ أخرجه ابوداود: 3502، وابن ماجه: 2192 ، (انظر مسند أحمد ترقيم الرسالة: 6723 ترقیم بيت الأفكار الدولية: 6723»
Brief Explanation
Benefits: … Bay‘ Arboon (Bay‘ al-Bayān): Bay‘ Arboon is when the buyer gives the seller some amount of money before the sale on the condition that if he cancels the transaction, that amount will belong to the seller. The buyer’s purpose in this is that the seller remains bound and does not sell the item to someone else. The narrations related to both the permissibility and impermissibility of this sale are weak; therefore, when there is no reliable evidence prohibiting it, it will be considered permissible based on the original principle.
If the permissibility of Bay‘ Arboon is accepted, then the question arises: in the case of canceling the transaction, why and in exchange for what is the seller confiscating the earnest money? When there is no compensation for it, it is not permissible to take someone’s wealth without anything in exchange.