What is the ruling on a car company selling a car to a client while the car remains registered in the company's name, then the client leases it back to the company for a period of three years, after which ownership is transferred to the client, knowing that the lease contract states that the car has been sold to the client and he owns it?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
If a company sells a car to a client on condition that the client leases it back to the company, the sale is void according to the majority of scholars, because it constitutes "two sales in one sale," which is prohibited. However, if the buyer leases the car to the company without this being a condition of the sale, then the contract is valid, and the transfer of ownership of the car in the buyer's name is a documentation procedure that does not affect the validity of the sale.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- 131723
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