Selling what the seller does not have on installments

The questioner:
The Shaykh’s question, may Allah grant you success, is that a person offered goods to another person, which he did not have and which had not entered his possession, but he said to him, “I have goods with so-and-so that I will buy for you, and you can take them on installments at such-and-such a price.” Is that permissible?

The Shaykh:
This is a calamity that is happening now. Customers who want to buy cars, villas, or land come to them and say, “Go and see what you want to buy from people and learn about it.” Then they go and buy it and deliver it to him. They deliver its value and recover it from the borrower in installments. This is not permissible because they do not own these items at the time of the contract. The Prophet (peace and blessings be upon him) said: . Because this Companion said to the Prophet (peace and blessings be upon him), “A man comes to me and asks me to sell him something I do not have.” Hakim ibn Hizam (may Allah be pleased with him) said, “A man comes to me and asks me to sell him something I do not have, then I go and buy it from the market and sell it to him.” He said (peace and blessings be upon him): . If the goods are present with the merchant or in the shop, and he sells them to the borrower for a deferred price or on installments, there is no harm. But if they are not with him, and he only goes to buy them after negotiating with the person, or perhaps he makes the contract and takes a deposit—we have been told that they take a deposit because they are afraid it will be too easy—this is not permissible. This is haram (forbidden). This is selling what one does not own. Yes.

Another questioner:
And he did not take a deposit, or the sale is not finalized in its final form until he has taken possession of it.

The Shaykh:
They say so, but it is not correct. They say so, but it is not correct. They register his name, and they register his affiliation, and they register his credit history,

Another questioner:
But it is not binding.

The Shaykh:
And they control it and rule on it so that it does not happen and they get rid of them. This is a lie. They say, “We do not bind him, and he has the option to cancel.” They are lying. It is not correct.

Another questioner:
This has become a promise.

The Shaykh:
This is empty talk. Ordering the purchase and promising the purchase, this is all empty talk. The Messenger (peace and blessings be upon him) said: . If the goods are present with the merchants, there is no harm in their selling them for cash or on credit. But if they are not with them, this is not permissible. And their saying, “We do not bind here, such-and-such,” no, this is not correct. If they knew he was a buyer, they would not have bothered themselves. Yes. But they are confident that they have registered him and controlled him. Yes. It is not correct. There is no option, not even this. If there were an option, they would not have started. Definitely, he remains independent. Never leave them to you. If it were once or one person, the rest is not correct. Rather, we found and made one swear by Allah, and he swore that he said to me, “Go and buy it, and I will pay the price, and I will recover it from you with an increase.” This is clear riba (usury or interest). This is a loan with interest. Yes.