2

Recently I've been searching for a house online, of course I do not want to get involved in Riba Astagfir-Allah, so I started subscribing to all these "sale in execution" property auction websites, so I can see whether I could get some good deals.

Anyways, I came across this one car they said you can buy it on "rent to buy".

So I looked up "rent to buy" and according to this explanation on Forbes.com you pay a deposit / down payment on the property (car / home/etc) and the rent you pay each month includes rent plus a downpayment on the innitial price of the house, and the price does not fluctuate with the interest rate.

Is it Halal to be involved in such a transaction? Please give a reason for your answer, Shukran.

  • 2
    why it can be Haram? reason is needed for being Haram. not for being Halal. in Islam if something is not Haram so it is allowed. i.e. by default everything is allowed unless it is specified as Haram. this principal is called Ibaheh اباحه. rent and buy are both Halal. tanzil.net/#2:275 if you have any reason it contains riba include it. – Battle of Karbala Jan 30 '14 at 19:02
  • Shukran brother, I realise this, I'm just very scared of getting close to Riba, therefore I'm asking a second opinion here – pythonian29033 Jan 31 '14 at 8:29
  • secure way is to avoid any doubtful situation. – Battle of Karbala Jan 31 '14 at 11:29
4

The contract is originally a rent contract with one term. The term is after paying all duties(your monthly payment and other things) the landlord will sell it to you by Hiba. This is accepted by all Ulama.

Here is the English article about this

And If you can read Arabic you go to this book الاجارة المنتهیة بالتملیک و صکوک الاعیان الموجرة/ دکتر منذر قحف ص7

You can find this book Here

  • Salaam Fatemah, when you say "accepted by all Ulama" do you mean by all mathahib? or by the big Imaams and muftis of modern day? because in our country the Ulama say, since we can't afford to buy a house cash, we are allowed to take out bonds. . .I don't agree with that view. I think if Allah thought it'd be that hard for us, He'd have made other avenues for us – pythonian29033 Jan 28 '14 at 12:59
  • Salam Alaykom, I checked The Sunni and Shi'a references. But I never check Wahhabism references. In my country also we buy bonds to buy a house If we have not enough cash. – Fatemeh Jan 28 '14 at 20:53
  • Astaghfir Allah Fatemeh! you can't do that it's a major sin! doesn't matter who's doing it, just because a lot of people do it does not mean it is right. my parents also unfortunately bought a house with a bond, but my mother pays her stuff off quickly, and I don't think she knew at the time, but I've enlightened her on the subject. I don't wanna touch Riba, Allah help me with that goal insha Allah – pythonian29033 Jan 30 '14 at 13:22
1

Assalamu alaykom,
All buy, sell, and rent contract has its own conditions and constraints. sometimes one condition will make the contract haram, for example here in my country Jordan many banks provide rent to buy contracts, the scholars said it's halal for some contracts that was giving by some banks, and it's haram for the other contracts unless they change some of their contract's conditions.

In conclusion, the concept of rent to buy contracts is halal, but it depend on the contract terms and conditions. So you have to give trusted scholar your contract to give you a fatwa about that exact contract, if it's halal or haram.

0

Answer Praise be to Allaah. What we understand from the question is that the bank sells its share of the house to you, and the price is divided into monthly instalments. But at the same time the bank retains its ownership of the house until the instalments are paid off, and during that period it rents its share of the house to you.

Based on that, you pay a monthly sum, part of which is towards the price of the house and the other part is rent for the house.

This is one of the kinds of “rent-to-own” schemes, and it is a haraam kind, because it includes a number of things that are contrary to sharee‘ah, namely:

1-It goes against the implication of the sale contract, because the sale contract implies that the item sold is transferred to the purchaser, but in this case the house remains under the ownership of the bank and is not transferred to the purchaser.

One of the statements of the Islamic Fiqh Council is that “the seller has no right to retain ownership of the sold item after the sale.”

Qaraaraat wa Tawsiyyaat Majma‘ al-Fiqh al-Islami, p. 110

2-It includes two transactions, namely sale and rental, concerning one item at the same time, but these are two different transactions. Sale implies that the item and its benefits are transferred to the ownership of the purchaser, who becomes liable for it and entitled to its benefits. Rental implies that the item remains the property of its owner and the renter is entitled to make use of its benefits only; he cannot dispose of the item itself. It says in a statement of the Islamic Fiqh Council: The reason for the prohibition of rent-to-own schemes is that they involve two different transactions at the same time concerning the same item. End quote.

See also the answer to questions no. 97625 and 125909

The way to get out of that is:

The bank should sell you its share of the house for monthly instalments, even if that is for more than the price for which it bought it, and it should make the house collateral until the instalments are paid off in full, so as to protect its rights.

And Allah knows best.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.