What is the ruling on a penalty clause for delayed payment of house purchase installments, knowing that a large portion of the amount was paid before signing the contract, and the clause stipulates a 10% late fee if the installment payment is delayed for 30 days?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Stipulating a fine for late payment of an installment is a forbidden and void condition, and it is the usury of the Ignorance (pre-Islamic era). Therefore, it is impermissible to fulfill it. However, since you have signed the contract and cannot withdraw from it, and you have paid a large sum of the price, there is no harm in proceeding with the contract and paying the remaining installments, while being careful not to delay payment to avoid this fine.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/184949
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- Ftawy
- Original fatwa ID
- 184949
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy