Returning A Deposit

Business Dealings, Debt and Loans

Question

Funds were taken as a deposit for the sale of my house. However the sale did not go through for some reason. Must the deposit be returned?

Answer

Fundamentally, if a deposit was given to someone for a certain transaction which then did not work out afterward, then the deposit will be regarded as a debt on the seller’s head and, hence, the exact amount will have to be given back to the buyer.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

فقه البيوع على المذاهب الأربعة (119/2)
و إن فسخ البيع بممارسة الخيار، وجب على البائع أن يرد إليه مبلغ العربون.

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