Selling a land whose owner was forbidden from starting a project on it
Q: My father had a piece of land along with another partner. I applied to the concerned authorities to obtain a building license in order to build a petrol station in the eastern part of land near a crossroad. They denied me a license under the pretext that this place it too close from the crossroad. This is forbidden according to their laws. They told me that I am not allowed to build a petrol station in this place unless it is two hundred meters away from the crossroad. We then went back the appointed distance and applied for the license and we got it. Then someone wanted to buy the area near the crossroad in return for a good price in order to build it as a petrol station. The mediator called me and asked me about this area.
I told him
that I applied to the concerned bodies to get a building license and they denied me this license, and I told him all what had happened. The customer then abstained from buying this piece of land, and my father's partner blamed me severely for telling him about what had happened. He said that there is no fault in this land that annuls the selling contract. He blamed me for spoiling this transaction. Am I right with regard to what happened? Or is my father's partner right?
If the reality is as you have mentioned, then telling the customer about the reasons of preventing this piece of land from being a petrol station is obligatory. (Part No. 13; Page No. 210) Moreover, it is a kind of clarification which was ordered by the Prophet (peace be upon him) in his saying:
"Both parties in a business transaction have the right to annul it so long as they have not separated; and if they speak the truth and make everything clear they will be blessed in their transaction; but if they tell a lie and conceal anything the blessing of their transaction will be wiped out."
(Related by Al-Bukhari and Muslim).
The Prophet (peace be upon him) also said:
"Religion is based on advising one another..."
The objection of the partner of your father is not acceptable.
May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.