Purchasing real estate mortgaged to the Real Estate Fund with the repayment of the loan to the Fund
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I would like to inform Your Eminence that the practice in the Fund’s administration is to allow the transfer of the mortgaged real estate in its favor from one person to another, with the mortgage remaining in place, and the latter taking over the completion of paying the remaining installments and committing to all the conditions stated in the contract, except that from time to time, some citizens who benefit from the Fund’s loans, particularly those bound by ties of kinship, submit applications stating that they have agreed among themselves for each person to take the place of the other by purchasing the real estate mortgaged to the Fund that is in the other person’s name and committing to paying the remaining loan, whether the location of the real estate is in one city or in two different cities, and whether the value of the loan is equal or different, with the difference usually being due to matters related to the seniority of the date of obtaining the loan, the regularity of repayment, or the difference in the loan category
established in (A, B, C), which are as follows: A- (300,000) three hundred thousand riyals for the capitals of administrative regions and governorates (A). B- (250,000) two hundred and fifty thousand riyals for administrative governorates (B). C- (200,000) two hundred thousand riyals for administrative centers. They wish for the Fund’s administration to approve the completion of this transaction, whether it is a correction of an existing situation among them, which is usually the case among those bound by ties of kinship, or a sale, which is conducted with them and with other citizens. We would like Your Eminence to direct the relevant parties to inform us of the Shari'ah ruling regarding these real estate transactions financed by loans from the Fund, and whether they fall under the category of riba? Or does the difference in the location of the real estate or the value of the remaining loan have no effect?
After the Committee’s study of the inquiry, it responded that it is permissible to sell the property for which one is responsible; because in this case, the debt is an accessory to the real estate, and the accessory has the ruling of the principal, which is the real estate, and it is not given a separate ruling; therefore, what is not permissible independently is permissible as an accessory. This is indicated by the hadith of Ibn 'Umar (may Allah be pleased with them both), which is marfu' (traced to the Prophet), and in it:Sunan Ibn Majah 2211Sahih (Darussalam) It was narrated by al-Bukhari and Muslim , and the wording is al-Bukhari’s . This hadith is clear in its indication that the accessory is not given a separate ruling; because the generality of the word "wealth" in the hadith encompasses all his wealth, whether it is cash or a debt, and thereby the suspicion of riba is eliminated.
established in (A, B, C), which are as follows: A- (300,000) three hundred thousand riyals for the capitals of administrative regions and governorates (A). B- (250,000) two hundred and fifty thousand riyals for administrative governorates (B). C- (200,000) two hundred thousand riyals for administrative centers. They wish for the Fund’s administration to approve the completion of this transaction, whether it is a correction of an existing situation among them, which is usually the case among those bound by ties of kinship, or a sale, which is conducted with them and with other citizens. We would like Your Eminence to direct the relevant parties to inform us of the Shari'ah ruling regarding these real estate transactions financed by loans from the Fund, and whether they fall under the category of riba? Or does the difference in the location of the real estate or the value of the remaining loan have no effect?
After the Committee’s study of the inquiry, it responded that it is permissible to sell the property for which one is responsible; because in this case, the debt is an accessory to the real estate, and the accessory has the ruling of the principal, which is the real estate, and it is not given a separate ruling; therefore, what is not permissible independently is permissible as an accessory. This is indicated by the hadith of Ibn 'Umar (may Allah be pleased with them both), which is marfu' (traced to the Prophet), and in it:
And whoever buys a slave who has wealth, his wealth belongs to the seller, unless the purchaser stipulated a condition.
من ابتاع عبدًا وله مال، فماله للذي باعه، إلا أن يشترطه المبتاع
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.