Is pre-emption applicable when property is transferred in exchange for monetary compensation?

General Chapter

Al-Mughni

Book of Preemption (Shuf'ah)

Book 23 · Issue 2 · Bab 1

Open in Qurani

Primary text

Pre-emption is applicable without dispute when the consideration for the property is money, such as in a sale. This is established by the Hadith of Jabir, which states that if a sale occurs without the pre-emptor's permission, he has the primary right. This principle extends to all contracts that function as a sale, such as a settlement resolving a claim involving monetary compensation, or a gift where a known reward is stipulated, as these carry the rulings of sale.

Supporting text

Abu Hanifa and his followers stipulate that pre-emption does not take effect in a stipulated-reward gift until the exchange (qabd) is completed, analogizing it to a sale contingent upon an option period, as a gift is only confirmed by possession.