The Majlis Archive

Finance - Banking - Business The Majlis Vol 21 No 12, p.3

I have hired a premises. The owner charges an amount which has to be paid upfront.

Question

I have hired a premises. The owner charges an amount which has to be paid upfront. This amount is not part of the monthly rental. It is a payment for securing the house. Is this permissible?

Answer

The lease agreement explained by you is not permissible. The amount paid upfront, if it is not rental in advance, is haraam.

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The Majlis Vol 21 No 12
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