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The question

What is the ruling on a seller stipulating that he receives the down payment in the event that the buyer reneges on the purchase?

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

It is permissible to sell with an earnest payment—where the buyer pays the seller an amount that is part of the price upon completion of the sale, and which becomes the seller’s if the purchase is not completed—unless there is an authentic prohibition against it. Certain sales are excluded, such as salam (forward) sales and currency exchange, due to the requirement of complete immediate possession or full payment of the price. It is valid provided that the waiting period is specified and both parties agree.

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
20003
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