What is the ruling on selling cars in installments that are owned by the agent but have not yet been delivered to him from the factory, where the buyer is required to pay half the amount in advance, provided that the contract is concluded on the day the agent receives the car and it remains in his name until the full amount is paid?
There is no religious impediment to concluding an installment sale contract if the agent receives the cars from theVmanufacturer before the contract is concluded and half the price is paid in advance. If the half payment is taken before the contract, it is valid as a trust (earnest money), and it must be fully returned to the buyer if he backs out, unless the seller suffers financial damage, in which case he may take an amount equivalent to the actual damage. The seller is not entitled to retain ownership of the sold item after the sale, but he may stipulate that the sold item be mortgaged to him to guarantee his right to collect the deferred installments.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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