What is the ruling on the "sale with mortgage" contract for a car, which stipulates its sale with a guarantee of indemnity and performance, the buyer's commitment to payment while the car is mortgaged in the seller's name until full payment, the buyer bearing all damages and maintenance, the seller's stipulation of retaining a copy of the key and his right to repossess and sell the car in case of delayed payment, with the maturity date falling due upon three months of delay, the permissibility of early payment with a discount determined by the seller, and the buyer's acknowledgement of being free from debt? And what are the differences between it and a lease-to-own contract?

The clauses included in the contract contain various provisions:

Clauses (1) and (2) are permissible, as the seller has the right to request a guarantor for the buyer.

Clause (3) is void if its intent is to prevent the transfer of ownership to the buyer. However, it is permissible if it means to mortgage the car to prevent the buyer from selling it until the full price is paid.

Clause (4) relates to the buyer bearing the costs of damage and maintenance of the car. If the damage occurs while the mortgaged car is with the seller, without the seller's use, the mortgagee (seller) does not bear these costs unless they were negligent or used the car. In that case, the mortgagee bears the expenses.

Clause (5) permits the seller to sell the car if the buyer delays in paying installments, provided the mortgagor (buyer) grants permission. The buyer's agreement in the contract is considered permission, and it is stipulated that the buyer must not retract this permission; otherwise, the matter would be referred to a judge.

Clause (6) permits the seller to accelerate the maturity of the remaining installments if the buyer delays payment.

Clause (7), which dictates deducting a portion of the debt in exchange for accelerating the payment of installments before their due date, is impermissible according to the majority of scholars and is considered usury (riba). However, if the creditor waives a portion of the debt when the buyer pays the full debt without prior collusion, then there is no harm.

Clause (8), which stipulates that the buyer and their guarantor must be free of obligations and debts, is a permissible condition in favor of the seller.

This contract differs from a lease-to-own agreement; it is a sale contract with safeguards for the seller.