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Is it permissible to seek financial compensation from the owner for terminating a lease contract before its expiration, if this serves the interest of both parties?

1 min readAlso available in العربية

Leasing is one of the binding contracts. If the two parties agree to terminate it during the term, the lessor may compensate the lessee with a specific amount for relinquishing the usufruct of the remaining term. This is called "khulū compensation" (بدل خلو), and it is permissible in Sharia because it is a compensation for the lessee's relinquishment of their right. However, if the lease term expires and the contract is not renewed, khulū compensation is not permissible, because the owner has a greater right to their property.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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