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The question

What is the ruling on dealing with a real estate financing company that buys a house in cash, then sells it with a Murabaha (cost-plus) markup at a higher price with fixed installments, imposes late payment fees, registers the house directly in the buyer's name, and sometimes uses usurious funds?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

It is not a condition that the house be registered in the bank's name in a Murabaha sale. Rather, it is a condition that it enters into the bank's ownership and guarantee before being sold to the purchaser. As for the condition of paying a certain amount upon delay in payment, it is a forbidden and void condition according to the consensus of the Islamic Fiqh Academy, because it is usury of Jahiliyyah (the pre-Islamic era). Consequently, the contract is impermissible if it includes this condition.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
104860
Imported
Translation status
Source text, unreviewed
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