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The question

What is the ruling on the "Sarqafliyah" transaction in the marketplace, which is a lease contract for a specified period that automatically renews with the consent of both parties, for a predetermined monthly rent along with a one-time lump sum payment made in advance?

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Source: FtawySummarized from the full answer at Ftawy · reviewed Sep 2, 20261 min readAlso available in العربية
The answer

"Sarqufliyya" is a non-Arabic term, and its rulings vary depending on its types. The first type is Islamically void (batil shara'an), and the money taken through it is unlawful (haram). An example of this is when a tenant refuses to vacate the leased property after the expiration of the contract period unless they receive a sum of money. The second type is Islamically valid (sahih shara'an), and the money taken through it is permissible (ja'iz). An example of this is when a tenant is asked to vacate the leased property before the end of the contract period in exchange for a sum of money. The third type is a lease contract for a specified period, automatically renewable with the consent of both parties, along with a lump sum payment made upfront once. Scholars differed on this type; some permitted it because it included a monthly lease contract and the sale of a known usufruct.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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