Condition for imposing a penalty on the lessee if he delays payment
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Q2: Given the international nature of the company's activities, it is required to lease shops and offices outside the Kingdom, and most of the lease contracts it concludes stipulate that a financial penalty, calculated as a percentage of the rent ranging from 5% to 10% of the rent value, is imposed if the lessee delays paying the rent on time. Is this transaction permissible or not?
A2: It is not permissible to take an increase on the rent if the lessee delays paying it at the specified time; because this is riba (usury or interest). If the lessee is able to pay, he is obligated to pay it on time. If he is unable to pay, he must be given a respite without taking an increase from him; due to the saying of Allah the Exalted:[Al-Baqarah 2:280] .
A2: It is not permissible to take an increase on the rent if the lessee delays paying it at the specified time; because this is riba (usury or interest). If the lessee is able to pay, he is obligated to pay it on time. If he is unable to pay, he must be given a respite without taking an increase from him; due to the saying of Allah the Exalted:
And if someone is in hardship, then [let there be] postponement until [a time of] ease
وَإِنْ كَانَ ذُو عُسْرَةٍ فَنَظِرَةٌ إِلَى مَيْسَرَةٍ
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.