Darul Iftaa Mahmudiyyah

Mr. A is in need of money and plans to rent his house for a large deposit and no rent. He is willing to rent his house to anyone who can give him the money which he will return without any deduction after the agreement period is over.

· 28 Ramadan 1426 AH1 min readFatwa 13622English

Question

Mr. A is in need of money and plans to rent his house for a large deposit and no rent. He is willing to rent his house to anyone who can give him the money which he will return without any deduction after the agreement period is over.

Mr B is in need of a house to stay but can only afford to give monthly rent. He does not have money to give large deposit to Mr.A. Mr. B asks his friend Mr C to pay the large deposit to Mr A and Mr B pays the monthly rent in advance to Mr C.

Mr A has given permission that the house will be rented by Mr C but Mr B will be staying in it.

Please comment in detail on this transaction in the light of Islam. Is it Jayaz or not?. If not, then what should be done to correct it, if such a transaction has already been entered into?

Answer

A may take a loan from C and place the house as a collateral to C. He may permit C to stay in the house or allow anyone else to stay in the house. However, C cannot collect a rent from B. Alternatively, C may hire the house from A and sub-lease to B. In the first instance the contract will be based on the rules of Rahn (collateral) and in the second instance the contract will be based on Ijarah (hiring).

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai|

Answered by
Mufti Ebrahim Desai|
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/13622
Fatawa SA: https://fatawa.co.za/fatwa/askimam-13622

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