Yes — concealing a defect that would affect the buyer's decision or the price is deception (ghishsh) and is forbidden. The sale itself is not annulled automatically, but the buyer gains the option of defect (khiyār al-ʿayb) once he discovers it: he may keep the goods or return them and recover his money. This applies to used cars, second-hand goods, property and business assets alike, and it applies even if the buyer never asked. The Prophet ﷺ passed a heap of food, put his hand inside it and found it wet, and said, "Whoever cheats is not of me." He also said, "The two parties to a sale have the option so long as they have not parted; if they are truthful and disclose, their sale is blessed for them, and if they conceal and lie, the blessing of their sale is erased."
Q&A · Business & Finance
Must I disclose defects in the goods I am selling?
Evidence — the daleel
Sahih Muslim 102 ṢaḥīḥSahih al-Bukhari 2079 ṢaḥīḥSahih Muslim 1532 Ṣaḥīḥ
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Informational, not a personal fatwa. Consult a qualified scholar for rulings on your situation.