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The question

Is it permissible to take a sum of money in exchange for withdrawing from an auction?

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

What is termed "reconciliation" in the question is known as "annulment" (iqalah) among scholars. They have differed on whether it is a فسخ (dissolution) or a بيع (sale). If we consider it a sale, as is the view of the Maliki school, then paying the amount is permissible, because it is akin to the seller buying back the sold item at a lower price than what you originally paid him for it. Here, the annulment differs from the forbidden bay' al-'inah (a type of buy-back sale). As for the amount paid by a bidder in some auctions, it is an earnest money sale (bay' al-'urboun), which some scholars have permitted.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
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Ftawy
Original fatwa ID
45059
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