Brokerage and commission (samsara)

Samsara is brokerage: introducing a seller to a buyer (or the reverse) against a commission. The Prophet (peace and blessings of Allah be upon him) established its legitimacy:

A man said: o Prophet of Allah, I have a property I sell... and he brokered it; the Prophet approved the brokerage commission.rapporté d'Ibn 'Umar

Conditions of lawful brokerage

• A clear mandate: the broker acts at the request of the seller or the buyer, with a defined scope (price, object, duration): this is wakala (mandate) applied.
• A known commission: fixed in advance or according to the trade's usage (market percentage); the commission is paid for the service rendered, not on a mystery.
• Truthful information: the broker presents the property without concealing known defects: kitman al-'ayb otherwise (see the najash page).
• No hidden double mandate: taking fees from both sides without saying so is a breach of loyalty; a disclosed double mandate is lawful when market usage establishes it and the parties accept it.

Brokerage prohibitions

• Brokerage on the unlawful: facilitating an interest loan, a forbidden sale, a fraud: sharing in the sin (Quran al-Ma'ida 2).
• The false valuation: inflating the estimate for the commission: deception and injustice.
• Bypassing the broker: the buyer introduced by the broker who concludes directly with the seller to avoid the commission: fiqh holds the commission due: a right over accomplished work, backed by market usage ('urf) and the pact.

Modern forms of brokerage

Real estate agent, credit broker (without interest products), takaful insurance broker, affiliation platforms (commission on real sales): all enter samsara with their conditions; the affiliate who lies about the product answers like the seller. Investment brokerage (stock exchange, funds) falls under the investment mandate codified by AAOIFI Standard No. 46 (al-wakala bi-l-istithmar): the agent does not guarantee the outcome, his fee is agreed, and he acts within the mandate's limits.

Practical note on brokerage

The honest broker renders a religious service: he saves time and protects from errors; his commission is a price of trust. The principal writes the mandate (object, commission, duration): the contract protects both parties.