Selling the product before owning it and possessing it is not permissible

Selling the product before owning it and possessing it is not permissible


Question :

A merchant displayed samples of some products, like refrigerators, machines and other items. If one of his customers wanted to buy something from them, he would agree with him on the price and from that point he would contact the supplier and buy the requested amount. Then he would use his vehicle to deliver the item to the location of the customer and receive payment afterwards. What is the ruling on this sale?


Answer:

This sale is not permissible because it is selling the product before he owns and possesses it. Indeed it has been authenticated from the Prophet that he said:
"It is not permissible to make a loan and a sale (in one transaction), nor selling what you do not have."

It is also authenticated from him that he said to Hakeem bin Hizam,
"Do not sell what you do not have."

Also, it is confirmed from him that he prohibited items to be sold where they were bought, until the merchants (who bought them) took them to their own places. And Allâh is the Giver of success.


Source:
Ash-Shaykh Ibn Baz
Fatawa Islamiyah, Vol. 4 Pages 442-443

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