What is the ruling on the conditions imposed by the company in the auction for selling machinery and cars, such as requesting an initial deposit, confiscating the amount paid if there is a delay in payment, imposing storage fees, reselling at the buyer's expense along with administrative costs, and the buyer not being entitled to the surplus amount if the sale value exceeds the auction value?
There is no issue with stipulating an initial deposit that is refundable to those who do not win the auction, nor with the auction being conducted through sealed bids. However, it is impermissible for the company to confiscate the amount paid by the buyer if he delays in settling the price of the sold item, because that falls under unjustly devouring people's wealth. Similarly, it is impermissible for the company to sell the item on behalf of the buyer and take the price difference and administrative expenses beyond its right. If the selling price exceeds the auction price, the excess must be returned to the buyer, and only the actual dues, such as storage costs and the like, should be retained. These conditions are void and contrary to Islamic law.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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