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The question

What is the Shar'i ruling on investing other people's money in building and selling real estate with fixed, unchangeable profits, without giving depositors any percentage of capital inflation or increased profits resulting from rising real estate prices, and refusing to return their money or delaying that while not acknowledging their share?

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

It is permissible to invest other people's money in building real estate and selling it for a percentage of the profits, provided that the agreement is not based on a percentage of the capital, and that losses are shared among all parties. If the profit is a percentage of the capital with a guarantee, this is considered an interest-based loan (riba) and the contract is void. In this case, previous profits must be redistributed as a percentage of the actual profits (e.g., 40% or 50% for the mudarib [investor/manager] and the rest for the investors), and not according to the void previous agreement.

The investor has the right to withdraw from the company at any time, and it is not permissible to delay them or withhold their money. Failure to respond to investors' requests to adjust profits or allow them to withdraw is a forbidden injustice, and Allah's grace upon the oppressor will cease. Rights must be returned to their owners, and sincere repentance is required.

Summarized from the full answer at Ftawy · imported

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
29845
Imported
Translation status
Source text, unreviewed
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