Ruling on Bay' Al-Arboon (Down Payment Sale)

Authored by: Saudi Fatwa Committee

Definition and Permissibility

Bay' Al-Arboon, commonly referred to as a down payment, is a permissible form of sale in Islam. In this transaction:
  1. Definition:
    • A buyer pays a certain amount as a deposit to the seller (or their representative) to confirm the purchase of an item.
    • This amount is deducted from the total price when the remaining payment is made.
    • The purpose of the deposit is to secure the item so that no other party can purchase it.
  2. If the Buyer Does Not Complete the Purchase:
    • The seller is allowed to retain the deposit and consider it as their property.

Conditions and Validity

  • The sale remains valid whether a specific deadline for the remaining payment is set or not.
  • Once the transaction is finalized and the item is handed over to the buyer, the seller has the legal right to demand the remaining payment.

Evidence from Islamic Tradition

  • Practice of Umar ibn al-Khattab (رضي الله عنه):
    Umar's approval of this practice serves as evidence for its permissibility.
  • Scholars' Opinions:
    • Imam Ahmad: Stated there is no harm in Bay' Al-Arboon.
    • Abdullah ibn Umar (رضي الله عنه): Also allowed this type of transaction.
    • Sa'id ibn al-Musayyib and Imam Ibn Sirin: Permitted it, stating that if the buyer is unwilling to return the item and provides compensation instead, there is no harm.

Weak Hadith on Prohibition:

A hadith attributed to the Prophet Muhammad (ﷺ) prohibiting Bay' Al-Arboon has been classified as weak (da'if).
  • Reference: Sunan Ibn Majah, Hadith No. 2192.
  • Imam Ahmad and other scholars have declared this narration weak, making it unsuitable as evidence.

Conclusion:

Bay' Al-Arboon (down payment) is permissible, provided the agreed-upon conditions are met, and it aligns with Islamic principles of trade.

Reference: Permanent Committee for Scholarly Research and Ifta, Fatwa No. 19637
 
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