What is the legitimate Islamic solution for a contract to purchase an apartment in installments, whose terms stipulate that the ownership of the apartment will not officially transfer to the buyer until all its installments have been paid, while allowing residence in it from the date of signing the contract, and with no money or assets available to be mortgaged to the seller?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The condition that ownership of the apartment not be transferred in official documents, and that the buyer be prevented from selling it until all installments are paid, is permissible. This falls under what is known as official mortgage (al-rahn al-rasmi). The condition to terminate the contract if the buyer delays payment is permissible. However, the condition to pay financial compensation upon termination is not permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/169549
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- Ftawy
- Original fatwa ID
- 169549
- 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.
- Read the full ruling
- Read the full answer on Ftawy