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Subject : Ruling on Brokering

Fatwa Number : 239

Date : 30-03-2009

Classified : Allowance, Ration

Fatwa Type : Search Fatawaa

Question :

As the owner of a real estate office, customers usually deputize me to sell their property and agree that I take whatever extra amount I manage to make in case I sold it for a higher price. This is of course in addition to the customary 2% commission that any real estate office normally collects. Is that extra amount, which the buyer isn`t aware of, permissible?

The Answer :

Praise be to Allah the Lord of the Worlds.

From an Islamic perspective, brokerage is facilitating the sale transaction between the buyer and the seller. The broker is the intermediary who brings both parties to finalize the sale transaction.

Jurists have allowed the commission that a broker collects. Al-Bukhari said, "Ibn Sirene, Ata` and Al-Hasan permitted the commission collected by the broker."

The broker`s commission should be known. For example, if someone told another to sell or buy him a commodity and gave him a certain amount (Lump sum) in return for his efforts, then, according to the majority of scholars, this line of work is lawful and its revenue is lawful as well.

If someone said to another, "Sell that commodity for a certain price and you are entitled to any extra amount in case you managed to sell it for more." We hope that there is nothing wrong with this type of agreement because Al-Bukhari reported that Ibn Al-Abbas said, "There is nothing wrong with his saying, " Sell that cloak for a certain price and you are entitled to any extra amount in case you managed to sell for more." The Messenger of Allah said, "The Muslims will be held to their conditions." And Allah the Almighty knows best.



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