It is Forbidden for the Merchant to Sell a Commodity that He Does Not Own

প্রশ্ন · Question

Our sheikh, is the bank selling what it does not own forbidden to the
bank or to the buyer?
Question:
If the merchant, does not have the goods but requests them from
another merchant and sells them to the buyer, considered from
“selling what he does not own”?

উত্তর · Answer

Both of your questions are of the same topic and here is the answer to
you both:
The trader selling a commodity that he does not own is forbidden, i.e.
a void contract that the seller and the purchaser bear its sin. If he
knows that the commodity that is being contracted for is not in the

possession of the merchant; rather, the merchant will go and buy it
from the market and bring it to the buyer... We have clarified this in
The Islamic Personality Volume II in Chapter: “ It is not allowed to sell
what you do not have”:
“It is not allowed to sell a good before completing its ownership so
selling it in this situation is a void sale. This is verified in two situations.
Firstly, that one sells the good before he owns it. Secondly, he sells it
after buying it but before he completes owning it via taking possession
in that whose completion of ownership is conditioned upon taking
possession. This is because the sale contract only occurs upon owned
property so that which is not owned yet or is purchased but its
ownership is not yet completed since its possession has not yet been
taken, then there cannot occur over it the sale contract because there
does not exist a place for the contract to occur over it in the Shar’a.
The Messenger of Allah ﷺ prohibited the sale of what the seller does
not own. It is narrated from Hakeem bin Hazam (ra) who said:
«
السوق، فقال: «
“I said: O Messenger of Allah, there comes to me a man asking me to
sell what I do not have to sell then I buy if from the market. He said:
Do not sell what you do not have” (Narrated by Ahmad). And from
Amru bin Shuaib from his father from his grandfather who said: The
Messenger of Allah ﷺ said
ي بيع، ولا رب ح ما لم تضمن، ولا بيع ما ليس عندك
«
“It is not allowed to borrow and sell, nor two conditions in one sale,
nor a profit that is not included nor the sale of what you do not
have”(Narrated by Abu Dawud). The expression of the Messenger ﷺ
of “what you do not have ” is general including your ability to deliver
what you don’t completely own. This is strengthened by the ahadith
which came with a prohibition of selling that which is not possessed in

that whose completion of ownership is conditioned upon taking
possession. This indicates that whoever buys that which requires
taking possession until his purchase is completed is not permitted to
sell until he takes its possession. So its rule became the rule of selling
that which he does not own due to the Prophet ﷺs statement:
«
“Whoever sells foodstuff, he should not sell it until he pays its
due” (Narrated by Al-Bukhari). And due to what Abu Dawud
«أن الننْي ﷺ نهَ عن أن تباع السلع حيث تبتاع حن يحوزها التجار إلَ رحالهم »
“That the Prophet ﷺ prohibited goods to be sold where they are
bought until the trader collects them to their mounts” And due to
what ibn Majah narrated: «أن الننْي ﷺ نهَ عن سُِاء الصدقات حن تقبض »،
The Prophet ﷺ prohibited the purchase of charity (sadaqat) until it
is taken possession.” And due to what was narrated by Al -Bayhaqi
from Ibn Abbas that he said: The Prophet ﷺ sent Uttab bin Usayd to
Makkah, he said:
«ي قد بعثتك إلَ أهل الله، وأهل مكة، فانههم عن بيع ما لم يقبضوا
إب »
‘I have been sent to the people of Allah and the people of Makkah,
Prohibit them from selling that which they have not taken possession
of.’” These ahadith are explicit in prohibiting that which they have not
taken possession of since the seller has not completed his ownership
over it. This is because that which requires taking possession of, then
its ownership is not completed until the buyer possesses it and also
because it is in the guarantee of its seller.
Hence it is clarified that it is a condition of the validity of sale that the
seller owns the good and has completed his possession therein. If
however he does not own it or he owns it but has not completed his
own ownership therein then it is absolutely not allowed to sell it. This
includes what he owns but has not taken possession in what taking
possession is a condition to complete the sale which is what is

measured, weighed and counted. As for those for which taking
possession is not a condition of completing ownership which is other
than that which is measured, weighed or counted such as the animal,
house and land and what is similar then it is permitted for the seller to
sell it before taking possession. This is because the mere occurrence of
the sale contract by offer and acceptance completes the sale whether
he takes possession of it or not, so he would have sold that which his
ownership over it is accomp lished. The issue of the sale being void is
not related to taking possession or not; rather it is related to the
ownership of the sale and the completion of ownership therein. As for
permitting the sale of something that has not been possessed in other
than what is weighed or counted, this is established by the sahih
hadith. And Al-Bukhari narrated from ibn Umar (ra) that he was riding
troublesome camel which belonged to Umar
«فقال له الننْي ﷺ بعنيه، فقال عمر: هو لك فاشي اه ثم قال: هو لك يا عبد الله بن عمر،
فاصنع به ما شئت»
“So the Prophet ﷺ said to him to sell it to him. So he bought it then
said: It is for you, O Abdullah ibn Umar, so do with it as you wish.”
This is disposal in the sale by gift before taking possession of it which
indicates the completion of ownership in the sold good before taking
possession of it. It indicates the permissibility of selling it because the
seller’s ownership therein has been completed. Accordingly whatever
the seller owns and his ownership is completed over it then it is
permitted for him to sell it. And whatever (good) whose ownership is
not completed is not permitted to be sold.
Hence what is done by small traders of bargaining with the buyers of
the good then agreeing with him over the price and selling it to him,
then going to another trader to buy it for the one whom he sold it to
and then presenting it and delivering it to the buyer is not permitted
because it is selling that which is not owned. When the trader is
asked about the good, it is not before him nor does he own it but he

knows it exists in the market with others. So he lies and tells the
buyer that it is present and sells it to him, then he goes to buy it after
selling it. This is haram and not permitted as it is selling that which is
not owned.
Similarly what is done by the owners of shops in the vegetable and
grain market when they sell vegetables and wheat before their
ownership therein is completed. Some traders buy vegetables or
wheat from farmers and sell it before they have taken possession of
it. This is not permitted as it is from the foodstuff wherein ownership
is not. It is not allowed to sell what you do not have completed
except by taking possession of it.
Similar is what importers from other countries do. Some of them sell
the goods and make the delivery in the country a condition therein,
then sell them before they arrive i.e. before their ownership over
them is completed. This sale is forbidden as it is selling before the
ownership over it is completed” [End Quote]
I hope that this is sufficient and Allah is Most Knowledgeable Most
Wise.
Your brother,
Abu Yasin
6 Dhul Qi’dah 1444 AH
26/5/2023 CE