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: FtawySummarized from the full answer at Ftawy · imported 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.
Summarized from the full answer at Ftawy · imported
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