Question
There are seven co-owners who jointly own a building. From those seven, four individuals have a separate partnership which runs a business. Now the business partnership of four is the tenant in the building that is owned by the seven co-owners. The time came to renew the lease, and there were negotiations about the rental, but this could not be concluded. The four who are in the business partnership wanted to pay a very low rental. The others who are not partners in the business wanted a market related rental. Zaid is one of those three who are co-owners in the building whilst not being a partner in the business. Finally Zaid said that you either pay the market related rental or you vacate by so and so date. He gave them three months advance notice. The business partnership refuses to vacate, and also refuses to pay the market related rental. According to the Shariah, does this business partnership have a right to continue to occupy the property on its own terms? Are the business partners sinful for remaining in occupation without having concluded a new lease on mutually acceptable terms?
Answer
In fact the four partners in the business, own more of the property that the three who are not partners in the business. The property has to be physically demarcated for each partner in the property. Then the four will not pay any rent because they will be occupying property belonging to them.
Without demarcating the shares physically, it cannot be established if they are occupying more than their shares of the property or less. If they are occupying more than their combined shares, then they have to pay rent for only the portion in excess to their combined shares.
If they are occupying less than their shares, then they are not liable for paying any rent. On the contrary, they can incorporate into their shares whatever extra they are not occupying. Zaid is in error. The tenants in this case are not sinful.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 28 No 08
- PDF page
- 12
Appears under LEASING THEIR OWN PROPERTY? (approximate).