Charging commission

CategoriesTrade, Business & All Things Money [558]

Charging commission

In the name of Allah, the most Beneficent, the most Merciful.


In a situation where the commission is fixed, such as when the broker sells a car and charges £100 for the brokering service, then this is permissible.

Imam Bukhari (RA) has formed a chapter in his Sahih entitled ‘Chapter regarding the commission of brokerage’ in which he states: Ibn Sirin, Ata’, Ibrahim and Al-Hasan did not think that there was anything wrong in a broker receiving a commission.  Saaiduna Ibn Abbas Radiallahu Anhu said “There is nothing wrong in one saying, “Sell this garment and whatever you receive above such-and-such amount is yours.”   (Sahih Bukhari p.303 v.1)

As for those situations where the broker takes a certain percentage from the sale i.e. where the commission is not fixed, there are differences of opinions.  In the Hanafi Fiqh, it is considered permissible.  Even though the commission of the broker was initially unknown, when the item was sold the amount became clear, thus no ambiguity remains.  (Taqrir Tirmizi p.59 v.1)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham

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