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The question

Is the seller entitled to deduct the value of the penalty clause (50,0) upon فسخ the contract and refunding the amount, after the buyer discovered that the agreed-upon price of the land (504,0) is much higher than the real market price (336,0)?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

A penalty clause between buyer and seller is permissible, unless there is a legitimate Shariah reason for annulment, such as the option of excessive deception (Ghabn Fahish). Excessive deception is determined by the custom of traders, or if it amounts to one-third [of the value], or more than one-third.

If deception is proven, the buyer is given the choice between returning the land and taking back the price, or keeping it without compensation (the difference between the price and the market value).

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16666
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy