Obtaining customs documents is not considered possession or taking delivery
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Fatwa No. ( 20104 )
Q: We are individuals responsible for a cooperative for some of our relatives. We purchased new cars with customs documents, some of which had registration forms, and we sold them on installment. We note that we did not transfer them into our names with the traffic department, nor did we take them out of the seller’s location; rather, we sold them at the place of purchase. We ask Allah, then you, to answer: Is this riba (usury or interest) or not? And if it is riba, how do we get rid of it? We note that we have not received the profit, up to this date. May Allah guide you, and peace be upon you and Allah’s mercy and blessings.
A: It is not permissible to sell cars, whether for cash or for a deferred price, whether in installments or not, except after the owner possesses them in his ownership and takes full delivery of them. This is done by the first buyer receiving them, possessing them, and transferring them to his own ownership. Merely obtaining the customs documents before taking possession and full ownership is not considered possession of the car or taking delivery of it. Accordingly, selling cars with customs documents before possessing them and taking full delivery of them is considered an invalid sale, which is forbidden to engage in. It must be annulled, and the price must be returned to its owner. It is not permissible to take its value except by a new contract after
the car is possessed by the buyer’s ownership and he takes full delivery of it.
Q: We are individuals responsible for a cooperative for some of our relatives. We purchased new cars with customs documents, some of which had registration forms, and we sold them on installment. We note that we did not transfer them into our names with the traffic department, nor did we take them out of the seller’s location; rather, we sold them at the place of purchase. We ask Allah, then you, to answer: Is this riba (usury or interest) or not? And if it is riba, how do we get rid of it? We note that we have not received the profit, up to this date. May Allah guide you, and peace be upon you and Allah’s mercy and blessings.
A: It is not permissible to sell cars, whether for cash or for a deferred price, whether in installments or not, except after the owner possesses them in his ownership and takes full delivery of them. This is done by the first buyer receiving them, possessing them, and transferring them to his own ownership. Merely obtaining the customs documents before taking possession and full ownership is not considered possession of the car or taking delivery of it. Accordingly, selling cars with customs documents before possessing them and taking full delivery of them is considered an invalid sale, which is forbidden to engage in. It must be annulled, and the price must be returned to its owner. It is not permissible to take its value except by a new contract after
the car is possessed by the buyer’s ownership and he takes full delivery of it.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.