Question
Kindly advise regarding the following: I had invested about 10 years ago in DMC properties. I bought shares in two different properties. Money invested :150 000 and 200 000 respectively. I had been receiving a monthly income from both properties. Since 2014, there was a legal dispute, and then monthly income was not regular from both properties and sometimes no payment was received. Currently, no profit is received from one of the properties in the past year, but I am receiving profits from the other property R400 rand monthly. It has come to our attention that this is not a shariah compliant investment. Although income is derived from rental only, the legal aspect and contract is not shariah compliant. The company is refusing to pay out and is also not performing well. The company has put the properties on auction for several years, but they are not getting a good price. So I am stuck with this non-shariah investment. I like to know whether it will be permissible to calculate the total income received in the past ten years from both ,since inception and offset it with amount invested as there is no hope of ever getting my money back or property getting sold. The company does not respond to queries and makes excuses all the time and says that they are waiting for it to be sold. According to my calculation I received R204,000 approx. from both properties to date. Can I write off the one property, and make a note in my will that if it does ever get sold then the money be regarded as interest for distribution as directed by the Shariah?
Answer
If the returns you are receiving are from rental income, the money is halaal although the initial contract is not compliant with the Shariah. You may therefore continue accepting whatever rental share is given to you. When the property is sold, then you still have to be paid your share of the property which may be substantially more than the R200,000 you had invested.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 26 No 09
- PDF page
- 2
Appears under Questions and Answers (approximate).