Question
I have purchased a property 'off the plan' – that is, before it has been built. It is a condition of the agreement that if possession of the completed property is not given on a certain date, then the seller will have to pay me a monthly penalty of a fixed amount. What is the Shariah's ruling?
Answer
The entire contract is baatil and haraam. It is not permissible to sell a non-existing item. It is not permissible to sell a property which has not yet been built. The sale is haraam and the penalty is haraam. The purchaser has to be refunded the full amount which he had given as the 'purchase price'.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 22 No 08
- PDF page
- 4
Appears under Questions and Answers (approximate).