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The question

Is the seller permitted to keep the deposit as earnest money if the buyer backs out of the purchase?

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

Earnest money sale (بيع العربون) is when a portion of the price is paid at the time of the contract, and this portion goes to the seller if the buyer does not purchase the commodity. The Hanbalis permit this type of sale, unlike the majority of scholars, and the Islamic Fiqh Academy has adopted this view. If the buyer did not pay earnest money, or if what occurred was merely a promise, then the seller has no right to claim it. The sales contract is binding and cannot be revoked except with the consent of both parties. If the buyer retracts from the purchase, the sale remains binding, the commodity belongs to the buyer, and the seller demands the price from him. If the buyer delays in paying the price, the seller can revoke the contract (according to Ibn Taymiyyah), or sue the buyer, or refuse to deliver the commodity until the price is paid, or take what suffices him from the buyer's money if he comes across it.

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
29913
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