Back to search
The question

What is the ruling on a real estate merchant sharing in the profits in exchange for finalizing the legal deed (sukuk shar'i) paperwork for a property and paying government fees, while also receiving a fixed amount per plot of land as profit, recovering the invested amount, and taking a plot of land as collateral?

Share this answer

Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

The fact that the property owner will pay the initial investment amount means it is in the nature of a guaranteed loan. If the agreed-upon profit is in exchange for providing this guaranteed amount, then this contract is impermissible because it is a loan that brings benefit, which is usury (riba). This is further confirmed by receiving one of the properties as collateral to be sold if he fails to pay the agreed-upon amounts to collect the principal of the loan and its profit.

Summarized from the full answer at Ftawy · imported

Read the full answer on Ftawy
Where this answer came from
Source platform
Ftawy
Original fatwa ID
173059
Imported
Translation status
Source text, unreviewed
Read the full ruling
Read the full answer on Ftawy