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The question

Is it considered usury to agree upon an increase in the land's price for my uncle instead of the stipulated penalty clause, or is it better to فسخ العقد (rescind the contract) and take the penalty clause, or is the latter impermissible?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

According to some jurists, a down payment (ʿurbūn) is permissible. This is an amount paid upon concluding a contract, and if the buyer does not complete the transaction, the down payment belongs to the seller. It is permissible for the seller and buyer to agree to annul the contract if the buyer does not pay the price within a specified period. However, it is not permissible to increase the price in exchange for delayed payment, as this constitutes usury (riba). If annulment is not stipulated in case of non-payment, some jurists have allowed annulment when the buyer procrastinates. In this case, the amount paid by the buyer must be returned, and it is not permissible to take the down payment, unless the annulment and taking of the down payment were conditioned upon non-payment within a specific time.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
16316
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.
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Read the full answer on Ftawy