We sold a land to one person. The amount decided was Rs. 400000. We agreed that we will give the land to him. The complete payment duration was fixed over several months. The land is still on our name and it will not be registered on his name until he makes the full payment. However, the man sold a part of the land to someone else at a higher rate. He has done partial payment of Rs. 100000 to us till now. 1) Is it permissible on the part of that man to sell the land to someone else at higher rate even though the land is still on our name and full payment has not been made? 2) Seeing some loss we want to cancel this transaction and sell it to someone else. We will return him the Rs 100000 that he payed us. Is it permissible for us to do that even though we agreed initially that we will give the land to him (it was only verbally agreed and no paper agreement was created)?
(1) If he took it into his possession after purchasing and sold some part of it, then it shall be alright though registry was not made into his name. And if he sold it before taking it into his possession then it shall not be right.
(2) When you sold the land to him, now you alone do not have the right to cancel this dealing. Written agreement is not necessary as per the Shariah. As per the Shariah, if verbal ijab-o-qubool (offer of sale and acceptance) is done, it is enough.
Allah (Subhana Wa Ta’ala) knows Best
Darul Uloom Deoband