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Assalamualaikum, Two brothers purchased one property on 50% sharing basis. One brother was not able to pay his 50% share instead he paid 20% only (Balance 80% paid by other brother) and told his brother that he will pay later.
Now property price increased and they want to sell the property.
Now, which ratio they have to share the profit 50%-50% or 20-80%?
If the property was recorded as being owned 50-50 then the brother who paid 20% was lent the balance of his payments. If you purchase something with borrowed money, the purchase and your ownership are still valid.
On the other hand if the property's ownership was recorded as 80-20 with the 20% owner having the right to buy an additional 30% share but that purchase never happened, then the sale split must be on the 80-20 ownership basis.
In summary, regardless of how the property was paid for, how is legal ownership recorded on the date of the sale?
My opinion, Allah knows best.
"and told his brother that he will pay later" so he borrowed the unpaid part from his brother, and he owns 50%, (though some of it is got with borrowing), so they should divide money of selling 50% to 50%.
