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Q 8, 9: There have been a lot of arguments about the amount of money to be paid to brokers; sometimes it is 2.5 percent and at other times it is 5 percent. What is the legal percentage (according to Islamic law) to be paid? Or is the amount determined according to an agreement between the seller and the broker?

A: If the broker, the seller and the buyer (Part No. 13; Page No. 130) have agreed that the broker will be paid by the buyer, seller, or both of them a fixed sum, then, it is permissible to pay that amount and there is no prescribed legal percentage; as it is determined by the agreement and consent of the parties involved. However, this should be within the framework of what is customary among people, and the broker should be adequately reimbursed for the efforts he exerted to finalize the sale between the buyer and the seller. At the same time, neither the seller nor the buyer should be harmed by increasing the amount higher than the usual rate. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.