Reselling a property the price of w...

Egypt's Dar Al-Ifta

Reselling a property the price of which has not been paid in full

Question

no. 513 for the year 2006 which includes the following:

A proprietor sold his property seven years ago for 40, 000 LE; the buyer paid 25, 000 LE and then there arose a dispute over the rest of the sum and registration.

Is it permissible for the owner to sell his property to another buyer for 80, 000 LE? He will remain responsible for settling any disputes with the first buyer and will return the down payment after closing the sale with the second buyer.

Please note that the [first] owner told the second buyer that he is authorized to sell the property on his behalf. However, the first buyer may not be aware of the second sale. Is it permissible for the second buyer to buy this property from its owner? If so, should he buy it from him in his capacity as an owner or an agent [for the first buyer]?

Answer

If the Sale was Valid

• If the case is as mentioned in the question i.e. the owner sold his property and the transaction met the pillars and legal conditions of the contract, then all its consequences are effective i.e. the buyer becomes the owner of the property and the seller is to receive its full price.
• The buyer is free to dispose of the property as he wishes; he must pay the remaining sum.
• The original owner is not entitled to resell the property because he would then be selling what he does not own even though the property has not yet been handed over to the purchaser.
• The second buyer may buy the property from the original owner in his capacity as an agent for the first buyer if he is certain of the validity of the power of attorney.
 

If the Sale is Rescinded or Null

• The first owner is entitled to resell the property if the sale is rescinded or cancelled and the property is returned to him.
• The second buyer may buy the property from the first owner directly without consulting the second party.
 

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