Regarding Brokerage in Buying and Selling Transactions

Monirul Islam
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Question: In our area, there are some people who take responsibility for land from the owner after agreeing on a certain price at which the owner wants to sell it. Later, whatever amount they can sell the land for above the agreed price, they keep for themselves. The same practice is also seen in buying and selling cars. We call them brokers. Is it permissible to conduct buying and selling in this way?

Answer: Basically, payment can be taken for facilitating communication in a sale, negotiating prices, and ensuring the safety and security of the transaction between both parties. If both the buyer and seller agree, the intermediary may take an agreed payment as compensation for the service. An agent or broker is a profession. Taking a commission for facilitating a sale or purchase after discussion and agreement is also permissible. However, brokers who lie, make false claims, engage in fraud, or deceive buyers by quoting unreasonable prices are not engaged in a permissible profession.

Answered by: Allama Mufti Ubaidur Rahman Khan Nadwi
Source: Jameul Fatawa, Islamic Fiqh and Fatwa Encyclopedia
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