Sale by Public Auction
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Question: Is sale by public auction, known as al-haraj, considered a case of a man bidding on his brother's bid, which is prohibited, or is it not?
Answer: Bidding on a bid is subject to detail. If the auction is still open, the item is being called out, and higher bids are being requested, there is no harm in a person bidding higher than another's bid, because the increase is required and the door to bidding is open.And the Prophet (peace and blessings be upon him) said: in some of the sales that the Prophet (peace and blessings be upon him) oversaw.
However, if the bidding has ended, and the owner of the item or his agent wants to sell to a specific person, and the bidding has been cut off and concluded, then at that point it is not permissible for anyone to step forward and bid on his brother's bid.Because the Prophet (peace and blessings be upon him) said:Bulugh al-Maram 7:35 , this is if the price has been cut off, the bidding has ended, the bidding has been closed, and the owner of the item or his agent wants to sell it to a specific person.
Answer: Bidding on a bid is subject to detail. If the auction is still open, the item is being called out, and higher bids are being requested, there is no harm in a person bidding higher than another's bid, because the increase is required and the door to bidding is open.And the Prophet (peace and blessings be upon him) said:
Whoever increases
من يزيدHowever, if the bidding has ended, and the owner of the item or his agent wants to sell to a specific person, and the bidding has been cut off and concluded, then at that point it is not permissible for anyone to step forward and bid on his brother's bid.Because the Prophet (peace and blessings be upon him) said: