Prohibition of Selling Goods Before Taking Possession in Islamic Law

Prohibition of Selling Before Transfer of Ownership


Author:
Dr. Muhammad Ziya-ur-Rahman Azmi (رحمہ الله)


Selling Goods Before Taking Possession


Question:
Some traders purchase goods and receive them, but they do not inspect them. Instead, they take the sales receipt, pay the price, and leave the goods in the seller’s warehouse. Later, they sell the goods to another trader while they are still in the first seller’s warehouse.


Answer:
It is not permissible for the buyer to sell these goods while they still remain in the seller’s ownership, until the buyer has taken possession and moved them to his home or marketplace.


This ruling is based on authentic Ahadith, such as the statement of the Prophet ﷺ:
«لا يحل سلف و بيع، ولا بيع ما ليس عندك»
"It is not permissible to combine a loan and a sale, nor to sell what you do not possess."


The Prophet ﷺ also said to Hakim bin Hizam:
«لا تبع ما ليس عندك»
"Do not sell what you do not have."


Hazrat Zayd bin Thabit (رضي الله عنه) narrated that:
"The Prophet ﷺ forbade selling goods at the place where they were purchased until the merchants had moved them to their own homes."
[Sunan Abi Dawud, Hadith no. 3499]



From these Ahadith, it is clear that whoever purchases goods may not sell them until he moves them to another location, such as his home or marketplace.


[Ibn Baz: Majmu‘ al-Fatawa wa al-Maqalat: 19/121]
 
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