Back to search
The question

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?

Share this answer

Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

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 Ftawy
Where this answer came from
Source platform
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.
Read the full ruling
Read the full answer on Ftawy