Selling a car before taking possession of it
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Fatwa No. ( 7177 )
Q: Two years ago, I bought a Mercedes car in the following manner: A man I know came to me, and I bought the aforementioned car from him, knowing that he did not have it in his possession, nor was it his property. We agreed on the price (180,000), one hundred and eighty thousand riyals, in monthly installments. Then he bought the car in cash and transferred it to my name according to the agreement between us. After a period of two months, I was told that this sale is not permissible. I asked some scholars, and some of them permitted it, while others forbade it. However, I returned the car to its owner and informed him, so he accepted from me the principal amount he had paid in cash for the car. Is the sale permissible, and if so, do I have to return to him the remainder of the price we agreed upon or not? Knowing that the car became my property after the seller accepted the principal amount. I ask for clarification of the issue, and may you remain in good health.
A: If the reality of the contract between you is as you mentioned, then the first sale is not permissible and is not valid; because the seller sold you the car before taking possession of it, indeed before owning it, and this is prohibited by the Shari'ah. However, your mutual agreement
to pay him in cash what he paid as its price is a permissible contract, and we hope that Allah will forgive what has passed of your buying it before taking possession of it, indeed before he owned it. You do not have to pay anything other than the price you mutually agreed upon last, and it is upon you both to repent and seek forgiveness from the first sale.
Q: Two years ago, I bought a Mercedes car in the following manner: A man I know came to me, and I bought the aforementioned car from him, knowing that he did not have it in his possession, nor was it his property. We agreed on the price (180,000), one hundred and eighty thousand riyals, in monthly installments. Then he bought the car in cash and transferred it to my name according to the agreement between us. After a period of two months, I was told that this sale is not permissible. I asked some scholars, and some of them permitted it, while others forbade it. However, I returned the car to its owner and informed him, so he accepted from me the principal amount he had paid in cash for the car. Is the sale permissible, and if so, do I have to return to him the remainder of the price we agreed upon or not? Knowing that the car became my property after the seller accepted the principal amount. I ask for clarification of the issue, and may you remain in good health.
A: If the reality of the contract between you is as you mentioned, then the first sale is not permissible and is not valid; because the seller sold you the car before taking possession of it, indeed before owning it, and this is prohibited by the Shari'ah. However, your mutual agreement
to pay him in cash what he paid as its price is a permissible contract, and we hope that Allah will forgive what has passed of your buying it before taking possession of it, indeed before he owned it. You do not have to pay anything other than the price you mutually agreed upon last, and it is upon you both to repent and seek forgiveness from the first sale.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.