Is it permissible to purchase a property from Al Baraka Bank by paying a percentage of the price to the bank, after which the bank pays the full price to the seller, and then the bank adds a percentage to the property's price and sells it to the buyer in installments, knowing that some have issued a fatwa (religious edict) that this transaction is usury because the bank is an intermediary that takes a percentage and does not actually own the property?
The transaction mentioned is Islamically forbidden if the bank does not purchase the property and it does not enter into its ownership, because it is an interest-based loan (riba). The inclusion of the property in it is a stratagem to facilitate usury. The bank is not an intermediary but rather a lender with interest. Therefore, it is not permissible to purchase the property in this forbidden manner.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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