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The question

What is the ruling on a partnership agreement regarding a piece of land, in which one of the partners develops the land at his own expense, on condition that he only repays the other partner his share of the original land price upon sale? Is this permissible? And what is the amount that must be paid to the other partner? Is it the amount originally paid, or is the remainder divided after deducting the development costs?

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

If one partner plants on the land of the other partner or builds on it with his permission, and then the land is sold, the partner who planted or built is entitled to the value of what he planted or built, and the remainder is divided between them. You can also sell your share of the land for a price you both agree upon, or you can give him half of what was spent on reclamation, and then you divide the land equally. You are not obliged to sell your share for the same purchase price; you have the right to profit. It is not permissible for one partner to commit to buying the other's share for the same price paid, as this involves guaranteeing the capital.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16827
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