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To what extent are some transactions permissible in the real estate ownership apartment company, including: the company owner's agreement with a partner to contribute a sum without specifying a profit percentage, content with an anticipated certain percentage; selling apartments under construction; stipulating that capital cannot be reclaimed before all apartments are sold; what is the difference between a partner and a shareholder; how is profit calculated for a partner after the project cost was reduced following the agreement with him; and what is the ruling on the company owner stipulating a percentage of profits in exchange for management?

1 min readAlso available in العربية

1. It is not permissible to determine the contributor's share of the profit as a percentage of their capital. Instead, a known percentage of the profit must be agreed upon, and the capital's share of the profit is distributed among each contributor according to their contribution.

2. It is permissible to sell apartments under construction if their specifications are clearly defined. This is known as an Istisna' (manufacturing) contract.

3. Some scholars have allowed stipulating that the paid-in capital cannot be retrieved before all apartments are sold, while the majority of jurists view this as impermissible because a partnership contract is a revocable contract (aqd ja'iz).

4. There is no difference between a partner and a shareholder. A share is a common stake in the company, and the owner of the share is called both a partner and a shareholder.

5. If an agreement is made with a partner to pay an amount in exchange for a percentage of the net profit, this agreement is valid. If the project cost is reduced, the amount not needed should be returned to the partner.

6. If the company director is also a shareholder, they have two considerations: a partner by their capital, entitled to a percentage of the profit for their capital, and a director. Their compensation for management may be a percentage of the profit or a salary under a separate contract from the partnership agreement. It is not permissible to allocate a specific fixed salary for them in the partnership agreement itself.

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

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