The Ruling on Selling Real Estate Before It Is Built
Machine translationRead the Arabic original
Question:
He says: Honorable Shaykh, may Allah grant you success, is it permissible to purchase real estate before it is built? And if he pays some of its installments and owns it, is he allowed to sell it? Knowing that all of this is before the real estate is created and built?
Answer:
This is not permissible. This is what is called istisna' (manufacturing contract), and it is not permissible according to the majority of scholars. It is not permissible to sell things until they are complete and exist, so that they are known. As for selling something by description when it does not yet exist and is only to be created anew, this is not valid. This issue of istisna' is permissible only according to the Hanafi school, while the majority do not permit it.
He says: Honorable Shaykh, may Allah grant you success, is it permissible to purchase real estate before it is built? And if he pays some of its installments and owns it, is he allowed to sell it? Knowing that all of this is before the real estate is created and built?
Answer:
This is not permissible. This is what is called istisna' (manufacturing contract), and it is not permissible according to the majority of scholars. It is not permissible to sell things until they are complete and exist, so that they are known. As for selling something by description when it does not yet exist and is only to be created anew, this is not valid. This issue of istisna' is permissible only according to the Hanafi school, while the majority do not permit it.
Source
قناة «العلامة الدكتور صالح الفوزان»، [1411 -2802] حكم بيع العقار قبل بنائه - الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.