What is the ruling on the commercial contract of "Sarfaliyya" (key money), which is an automatically renewable lease agreement for a known period, with a specified monthly rent, along with a one-time lump sum payment made in advance?

The term "al-Sarqafliyya" is Persian, and in some countries, it is referred to as "Badal al-Khuluw" or "al-Furooghiyya." It signifies the waiver of a shop's lease to another party in exchange for a sum of money, which may be taken by the owner from the tenant, or by the tenant from a new tenant. The scenario mentioned in the question, where the owner takes a lump sum at the time of the contract in addition to the monthly rent, is permissible in Islamic law, provided that this amount is considered part of the agreed-upon rent. If the contract is terminated, the tenant must be refunded the portion of this amount corresponding to the remaining period. The Islamic Fiqh Academy has affirmed this ruling.