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How is the earnest money distributed among the landowners after the contract is rescinded and the buyer withdraws?

1 min readAlso available in العربية

If the earnest money is forfeited and the buyer cancels the contract, and the seller takes the earnest money, then if the seller is a group, they divide the earnest money according to the proportion of their shares. If their shares are equal, they divide it equally. If one of them owns half, he gets half of the earnest money, and so on. This is because the right of pre-emption (shufa'a) is a right derived from ownership, so it is distributed according to the extent of ownership, just like yield (ghallah).

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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