Does a car sale contract by installments—which includes a number of clauses and conditions such as the seller retaining the right to mortgage the car's papers until the full price is paid, and the right to demand the entire remaining amount if some conditions are breached, and the car remaining mortgaged to the seller until the last installment is paid, and the buyer bearing full responsibility for the car after receipt despite it remaining mortgaged to the seller, and the buyer being prohibited from disposing of the mortgaged car, and pledging to enable the seller to inspect it at any time, and committing to pay all its fees and taxes—comply with the provisions of Islamic Sharia?
It is permissible to enter into the aforementioned contract; however, for the installments to become due upon the debtor's default, it is stipulated that he must not be in financial distress. It is permissible to stipulate a mortgage on the sold item for its price, and that the buyer may not dispose of it by selling or similar actions. Similarly, it is permissible for the seller to sell the car and recover his right from its price if the buyer fails to pay the price, provided they agree to that. Signing secular laws is permissible when there is a need, especially with the inclusion of the clause "as long as it does not contradict the provisions of Islamic Sharia."
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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