What is the ruling on selling by lease-to-own (installment) with a 30% down payment and the remainder paid in installments over 36 months?
The contract in question—lease ending in ownership—can be permissible or prohibited. Its conditions for permissibility are: the existence of two separate contracts (a lease then a sale), or a promise of ownership after the lease, that the lease be actual and not merely a disguise for a sale, and that the guarantee for the leased asset be the responsibility of the owner, not the lessee. It is permissible to pay a portion or the entire rent upon contracting, as mentioned by Al-Kassani and Ibn Al-Najjar. What matters is that the transaction adheres to the -compliant regulations stated in the resolution of the Islamic Fiqh Academy.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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