What is the ruling when an authorized person (Adl) is given permission to sell mortgaged property with a specified currency?

General Chapter

Al-Mughni

Book of Pledges (Collateral)

Book 13 · Issue 1 · Bab 1

Open in Qurani

Primary text

If the authorized person is permitted to sell and a specific currency is designated, he is obligated to adhere to that designation and is not permitted to deviate from it. If the parties disagree on the currency—one demanding dirhams and the other dinars—the statement of either party is not accepted because both the mortgagor (owner of the property) and the mortgagee (creditor holding the lien) have rights involved. The matter must be referred to the judge (Hakim). The judge commands the sale to be conducted using the currency of the locality, regardless of whether it matches the currency requested by either party, as the primary concern is obtaining the most advantageous price for the sale. If there are two prevalent currencies in the locality, the property is sold for the one with the higher value. If the values are equal, the judge rules that the sale should be conducted using whatever yields the best result through independent judgment (Ijtihad). This is the position of Al-Shafi'i because the goal is to secure the greatest benefit. If the values are equal, the sale is conducted in the currency of the debt itself. If the currency of the debt is not present in the locale, the judge specifies the medium of exchange. This authorized person is treated like an agent (Wakil), being obligated to exercise caution and prohibited from selling below the fair market price (Thaman al-Mithl) or selling on deferred credit (Nasa'). Any violation subjects him to the same liabilities as a dissenting agent.

Supporting text

When selling on deferred credit (Nasa'), one account suggests it is permissible based on the ruling for an agent. However, this is deemed invalid because the sale here is intended to immediately settle a due debt, which deferred payment prevents. Similarly, if there is evidence indicating a prohibition against selling on deferred credit regarding the agent's case, it is impermissible for him. The conflicting opinions regarding deferred sales apply only when no such evidence or indication is present.