Question
Zaid owes the bank R200,000 which is the balance of the bond on his house. He arranges with Bakr to buy 40% of his house for R200,000 which will be paid to the bank to cancel the bond. Bakr will then sell his 40% to Zaid for a much higher price which will be payable over 10 years by Zaid. Is this transaction permissible?
Answer
It is not permissible to arrange two deals in a single transaction. Rasulullah (sallallahu alayhi wasallam) himself had forbidden this. If Bakr buys a portion (40%) of the house with the condition that Zaid will re-buy that portion for whatever price, then this whole transaction is haraam since it consists of two deals. If Bakr buy's a portion of the house for R200,000, it has to be a straight transaction without the condition of Bakr having to sell that portion to Zaid. After the first deal has been concluded, Bakr will be the sole owner of that portion, and he will be under no obligation to sell it to Zaid nor will he have the right to demand that Bakr sells his portion to him.
After Bakr has purchased a portion of the house and paid for it, then at some future date a decision to sell it to Zaid may be made. But it is essential to explain to Zaid before buying the portion that, the deal will be a real and valid sale in terms of the Shariah, and that he will not have the right to demand that Bakr sells the portion to him. Should Bakr then sell to Zaid, it will be a mutual voluntary agreement.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 21 No 08
- PDF page
- 4
Appears under Questions and Answers (approximate).