He bought land to be paid for in instalments. Does he have the right to sell it before paying off the price?

Question: 87638

I have bought a piece of land to build a home on it. And I paid one third of its price as a first payment. Then I wanted to sell this land versus a bigger amount of money than that amount I paid as first payment. What is the ruling on this? .

Praise be to Allah, and peace and blessings be upon the Messenger of Allah and his family.

It is permissible to buy land and goods – except gold, silver
and currency – and delay paying all or some of the price, such as if it is
agreed to pay an amount such as one-third or one-quarter, and delay paying
the rest until a specified time.

If the contract is concluded, then the purchaser becomes the
owner of the property, and may dispose of it like any other owner. He has
the right to sell it or give it away, whilst continuing to pay the
instalments that he owes, so long as he does not sell it to the first vendor
for a lower price that that which he paid for it, because this is an ‘aynah
transaction which is haraam.

It says in al-Mawsoo’ah al-Fiqhiyyah (9/36): The
effects that result from sale are: (i) transfer of ownership, whereby the
purchaser takes possession of the item sold and the seller takes possession
of the price; ownership of the sold item passes to the purchaser as soon as
the valid contract of sale is concluded and does not depend on him
physically taking possession of it and handing over money, although
physically taking possession and handing over the money counts with regard
to liability. End quote.

It also says (9/40): Handing over the sold item is the most
important action to which the seller commits himself in the sale contract,
and this is established once the price is handed over. But if the price is
delayed, then handing it over is not dependent on handing over the price.
End quote.

In some contracts the seller stipulates that the purchaser
will not sell the item – land or anything else – until he has paid off the
whole price. This is a permissible condition, which is keeping the land in
pledge for its price or until its price is paid off. In that case it is not
permissible for the buyer to sell it without the permissible of the first
seller.

See question no. 69877.

Based on that, if you did not agree with the seller to keep
the land in pledge for him until you had paid off its price, then it is
permissible for you to sell it for whatever price you wish, whether it is
more than you paid for it or less, because you have become the owner of the
land and you have the right to dispose of it as you wish.

And Allaah knows best.

Source:

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