Mufti Online — Madrasah Ta'leemuddeen

Buy and leaseback contracts

· 24 Dhuʻl-Hijjah 1440 AH1 min readEnglish

Question

I want to ask about buy and leaseback in Islam. Is it allowed?

There is this company selling shops in a mall with this buy and leaseback contracts where we own the shop but rights of giving it on rent resides with company and we get a fixed rent of 0.7% with 10% raise per year.

Also the company guarantees 20% price appreciation per year if we sell the shop back to them. All these are written in a single contract. Isnt this just the same as keeping money in banks with a fixed profit?

Answer

It is incorrect.

And Allah Ta'ala (الله تعالى) knows best.

Answered by
Mufti Ebrahim Salejee (Isipingo Beach)
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Source: Mufti Online — Madrasah Ta'leemuddeen — https://muftionline.co.za/node/30009
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