What is the ruling on purchasing an apartment from the Ministry of Housing, where the bank mediates the contract on the basis of "transfer of right" (hawālat ḥaqq), knowing that the owner sells it at a fixed price and adds a specific installment interest that the buyer pays to the bank? And does this transaction fall under the category of usurious increase (ribawi increase)?
If the sale is directly between the owner and the buyer, and the bank is merely an agent for the owner in collecting his due, then there is no objection to it. However, if the bank pays the price to the owner and then collects it from the buyer with an increase in installments, this is a usurious transaction and forbidden, because its reality is a loan with an increment.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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