Ruling on an Agent Taking Extra from the Sale of a Client’s Property

Authored by: Fatwas of the Saudi Fatwa Committee

Question: A person sells another's property as their agent. The owner entrusts the agent to sell the item due to their connections. The agent sells the item at a higher price and keeps the extra amount for themselves. Is this considered riba (usury)? What is the ruling on such actions?

Answer:
An individual selling property on behalf of someone else is considered an agent (wakīl) of the owner. The following principles apply:
  1. Trust and Transparency:
    • The agent is entrusted with the owner's property and its sale price.
    • If the agent takes any portion of the sale price without informing the owner, it is considered a breach of trust (khiyanah).
  2. Prohibition of Unlawful Gain:
    • Keeping the extra amount without the owner's consent is haram (prohibited).
    • The agent is required to return the additional amount to the rightful owner, as it was taken unjustly.
  3. Islamic Ethical Standard:
    • Agents must be transparent in their dealings. They cannot manipulate the price or withhold any part of the earnings unless they have an explicit agreement with the owner.

Verdict:

Such an act constitutes betrayal of trust and unlawful consumption of wealth, both of which are forbidden in Islam. The agent must return the extra amount to the owner and seek repentance for their actions.

[Reference: Al-Lajnah Ad-Daimah, Fatwa No. 17670]
 
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