A Question on Tawarruq

The questioner : on the condition that he pays him later. So this seller, the owner of the showroom, goes and says to another person, “Come, because so-and-so wants to do tawarruq with this car.” That means the first buyer buys this item from him at a lower price, so the showroom owner profits. The second buyer profits him a percentage, for example five hundred riyals, to take it in cash. So the second seller, who is the second buyer, profits, and the showroom owner profits.

The Shaykh : This is the original issue of the ruling, because the one who sells it on credit did not buy it except for the sake of this man’s request, because he needs the money. No, let the poor man have it, yes, but the same rich man to whom the poor man came and said, “I want such-and-such a car,” and he went to buy it for him—this is originally forbidden.

The questioner : It is forbidden for him to do this action.

The Shaykh : The first transaction is not valid.

The questioner : The first one buys it for himself. To simplify.

The Shaykh : The first one, who is the rich man.

The questioner : No, the first one is the one who needs the money.

The Shaykh : Where does he buy it from? Does he have money? Where from? Simplify it. Where did he buy it from? Directly, okay.

The questioner : We go to this car.

The Shaykh : This is a lock. If it is a shortening of the car, there is no harm. Yes. If his intention is to seek profit, meaning he buys it, for example, from this country at a cheap price and sells it in another country at a higher price, there is no harm. If he wants to sell it to benefit from its price, this is the issue of tawarruq, which is the one where there is disagreement among scholars. There are two narrations from Ahmad, and Shaykh al-Azhar al-Mutayn chose that it is forbidden. He was consulted about it repeatedly, but he refused to say anything other than that it is forbidden.

The questioner : With the presence of the four conditions that we mentioned. Yes. And it is permissible for this person who truly needs tawarruq. He truly needs it. Okay. So he goes to sell it. The owner of the showroom goes and calls a rich man to buy it, to buy this car in cash, and give the one who needs the money the money. Then the owner of the showroom goes and buys it from this rich man who bought it, so that the showroom owner profits.

The Shaykh : Okay, but on the condition that it is moved, meaning it is transferred.

The questioner : It is transferred to Dammam.

The Shaykh : There is nothing wrong with it.