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Prohibition of Selling Before Ownership is Transferred

Author: Dr. Muhammad Zia-ur-Rahman A'zami (رحمه الله)

❖ Selling Goods Before Taking Possession​


Question:
Some traders purchase goods and receive them without inspection. They obtain a sales receipt and make payment, but leave the goods in the seller’s warehouse. Later, they sell these goods to another trader, even though the items are still lying in the original seller’s warehouse.

Answer:
It is not permissible for the buyer to sell such goods as long as they remain in the ownership and possession of the seller. The goods must first be received and transferred either to the buyer’s home, shop, or market. This ruling is based on several authentic Hadiths.

The Prophet ﷺ said:

«لَا يَحِلُّ سَلَفٌ وَبَيْعٌ، وَلَا بَيْعُ مَا لَيْسَ عِندَكَ»

“A loan and a sale (in one contract) are not lawful, nor is the sale of that which you do not possess.”

The Prophet ﷺ also said to Hakīm ibn Ḥizām:

«لَا تَبِعْ مَا لَيْسَ عِندَكَ»

“Do not sell that which you do not possess.”

It is narrated from Zayd ibn Thābit (رضي الله عنه) that:

“The Messenger of Allah ﷺ prohibited the sale of goods at their place of purchase until they have been transferred to the seller's own premises.”
[Sunan Abī Dāwūd, Hadith No. 3499]

Therefore, based on these Hadiths, whoever purchases goods is not allowed to resell them until the goods have been transferred to another location such as their home, shop, or market.

[Ibn Bāz, Majmūʿ al-Fatāwā wa al-Maqālāt: 19/121]
 
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