Question
Can an investor set up the business. ie. pay for everything involved in the setup, construction, equipment, furniture, décor, literally everything. And then sell it to person B at a profit? For example, if it costs the investor 600k to set up the business, he marks it up by 50% and sells it to person B for 900k. And person B pays him off every month until the full 900k is paid up. Is this permissible? Also does he retain ownership until all the money is paid to him?
Answer
It is permissible to sell the assets at any price. The 'investor' will cease being owner of the assets when the sale transaction has been made. He will be entitled to only the money owed to him.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 28 No 09
- PDF page
- 11
Appears under CHILDREN IN THE MUSAAJID (approximate).