Shar‘i Ruling: Is Charging a Fee for Property Brokerage Permissible?
Source: Aḥkām wa Masā’il, Issues of Buying and Selling, Vol. 1, p. 373
In property transactions, if a third person acts as a broker (dalāl) and charges a fee either from the buyer, the seller, or both, is this permissible in Sharī‘ah or not? Since nowadays many people are engaged in this business, several individuals have inquired about this issue.
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ‘alā Rasūlillāh, ammā ba‘d!
In Ṣaḥīḥ al-Bukhārī, Ṣaḥīḥ Muslim, and other collections of ḥadīth, the Messenger of Allah ﷺ said:
«لَا يَبِعْ حَاضِرٌ لِّبَادٍ»
(Ṣaḥīḥ al-Bukhārī, Ṣaḥīḥ Muslim)
“A townsman should not sell on behalf of a bedouin.”
From this ḥadīth it is understood that a townsman cannot conduct sales on behalf of a bedouin.
The following three cases are permissible and contain no Shar‘i objection:
◈ A townsman selling the goods of another townsman.
◈ A bedouin selling the goods of another bedouin.
◈ A bedouin selling the goods of a townsman.
It should also be noted that a rural villager (qurawī) is considered under the category of townsman (ḥaḍarī).
If a broker charges the buyer more for the seller’s goods while giving less to the seller, or deceives one or both parties in the deal, then this practice is strictly forbidden and impermissible in Sharī‘ah.
The Messenger of Allah ﷺ said:
«مَنْ غَشَّنَا فَلَيْسَ مِنَّا»
(Mishkāt, Kitāb al-Qiṣāṣ, Bāb mā lā yuḍman min al-jināyāt, Faṣl Awwal)
“Whoever deceives us is not from us.”
If in addition to brokerage fees, the transaction involves other Shar‘i prohibitions such as:
◈ Interest-based dealings (ribā).
◈ A type of sale that has been prohibited (bay‘ manhī ‘anhu).
Then in such a case:
◈ The sale itself will not be valid.
◈ The brokerage will not be valid.
◈ The broker’s fee will not be lawful.
May Allah grant us the ability and strength to earn ḥalāl sustenance, relieve us from financial hardships, and establish the rule of righteous believers in our land.
All my dear brothers and companions are greeted with heartfelt salām.
ھذا ما عندي والله أعلم بالصواب
Source: Aḥkām wa Masā’il, Issues of Buying and Selling, Vol. 1, p. 373
❖ Question:
In property transactions, if a third person acts as a broker (dalāl) and charges a fee either from the buyer, the seller, or both, is this permissible in Sharī‘ah or not? Since nowadays many people are engaged in this business, several individuals have inquired about this issue.
❖ Answer:
Al-ḥamdu lillāh, waṣ-ṣalātu was-salāmu ‘alā Rasūlillāh, ammā ba‘d!
In Ṣaḥīḥ al-Bukhārī, Ṣaḥīḥ Muslim, and other collections of ḥadīth, the Messenger of Allah ﷺ said:
«لَا يَبِعْ حَاضِرٌ لِّبَادٍ»
(Ṣaḥīḥ al-Bukhārī, Ṣaḥīḥ Muslim)
“A townsman should not sell on behalf of a bedouin.”
From this ḥadīth it is understood that a townsman cannot conduct sales on behalf of a bedouin.
❖ Permissible and Impermissible Scenarios:
The following three cases are permissible and contain no Shar‘i objection:
◈ A townsman selling the goods of another townsman.
◈ A bedouin selling the goods of another bedouin.
◈ A bedouin selling the goods of a townsman.
It should also be noted that a rural villager (qurawī) is considered under the category of townsman (ḥaḍarī).
❖ Wrong Practice of a Broker and Its Ruling:
If a broker charges the buyer more for the seller’s goods while giving less to the seller, or deceives one or both parties in the deal, then this practice is strictly forbidden and impermissible in Sharī‘ah.
The Messenger of Allah ﷺ said:
«مَنْ غَشَّنَا فَلَيْسَ مِنَّا»
(Mishkāt, Kitāb al-Qiṣāṣ, Bāb mā lā yuḍman min al-jināyāt, Faṣl Awwal)
“Whoever deceives us is not from us.”
❖ Effect of Other Unlawful Elements:
If in addition to brokerage fees, the transaction involves other Shar‘i prohibitions such as:
◈ Interest-based dealings (ribā).
◈ A type of sale that has been prohibited (bay‘ manhī ‘anhu).
Then in such a case:
◈ The sale itself will not be valid.
◈ The brokerage will not be valid.
◈ The broker’s fee will not be lawful.
❖ Supplication:
May Allah grant us the ability and strength to earn ḥalāl sustenance, relieve us from financial hardships, and establish the rule of righteous believers in our land.
All my dear brothers and companions are greeted with heartfelt salām.
ھذا ما عندي والله أعلم بالصواب
