Is it considered usury or trade for a person to buy a plot of land for 20,0 dinars, possessing 15,0 dinars, then propose to a friend that he pay 5,0 dinars to become a partner in the land without registering his name in the deed, on the condition that he buys his share from him after two years with a 10% profit?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This contract is usurious and impermissible, because it is a loan with an increase, which is explicit usury. It also falls under the category of Bai' al-Wafa (a type of conditional sale) which is forbidden by . The permissible scenario is to share in the land without stipulating its purchase, and with witnesses to the shared ownership.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/83672
Where this answer came from
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- Ftawy
- Original fatwa ID
- 83672
- 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