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

1 min readAlso available in العربية

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.

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

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