Guidelines for Buying and Selling to Keep One’s Conscience Clear of Riba

Question:
The questioner, M. N. A., from Riyadh, says: Buying and selling have become very common. What are the guidelines for buying and selling so that it is permissible and free from riba (usury or interest), and so that the Muslim can keep his conscience clear of falling into it?

Answer:
The default ruling for transactions is permissibility, except for what evidence indicates is forbidden. Allah the Exalted said: . A sale has seven conditions mentioned by the jurists in books of fiqh (Islamic jurisprudence) that must be met. Among them is that the item sold must be permissible, and that its benefit must be permissible. Therefore, it is not permissible to sell forbidden tools or materials, such as carrion, pork, images, and items of amusement, or impure materials such as khamr (intoxicants), tobacco, and qat. These are not permissible to sell.
Second, the seller must be the owner of the item sold or authorized to sell it. Third, there must be mutual consent between the two parties, the seller and the buyer. Allah the Exalted said: . The Prophet (peace and blessings be upon him) said: . Therefore, coercion in a sale is not permissible, except in the case of a person who has debts and is demanded to pay them but refuses. In that case, the judge may sell his property to pay off the debt, even if the person is reluctant, because this is coercion based on a right.
Among the conditions is that the seller must be able to deliver the item sold, so it is not permissible to sell something one is unable to deliver. Also, the item sold must be in the possession of the seller, so he does not sell what he does not own and then go and buy it after the contract is made.
The saying of the Prophet (peace and blessings be upon him) to Hakim ibn Hizam: .
And that both the item sold and the price must be known, known in type, description, and quantity. The price must not be unknown, nor the item unknown. There must be no deception, trickery, or fraud, for this is forbidden in buying and selling. In addition to these other conditions, if the conditions of validity are met, the sale is permissible. However, if a condition is lacking, it is not permissible. One should refer to books of fiqh (Islamic jurisprudence) on this matter, or if one is not skilled in referring to them, he should ask the people of knowledge about any specific issues that are unclear to him. Yes.

The presenter:
May Allah reward you