What is the ruling on purchasing a piece of land through murabahah (a cost-plus sale)?

Question:
He says: I identified a piece of land and went to a company to buy it and sell it to me. Is that permissible?

Answer:
This is not permissible, because the company is not allowed to sell anything until it owns it and takes full possession of it, and then sells it. As for you identifying it for them, and them going to buy it—they do not buy it to own it, but rather they buy it for you on your account. You pay the price on their behalf, which is a loan, and they recover it with an increase. This is riba (usury or interest). It is not permissible. First, it is selling what one does not own. Second, it is riba, because they pay out an amount for you and take back more than that. Yes.
However, if the company or someone other than the company buys lands, cars, or goods, and takes possession of them and holds them, and then someone comes wanting to buy, they sell to him for a cash price or a deferred price, then there is no harm in that. Yes.