The ruling on purchasing a house through a bank via deferred ownership
Machine translationRead the Arabic original
Question:
Allow me to say: We ask Allah, Mighty and Majestic, that Allah accept from us and from you the fasting of this noble month, and that Allah return to us and to the Islamic ummah (the Muslim community) in the best of conditions. Ameen. My dear brother, with your permission, Honorable Shaykh Salih al-Fawzan, may Allah prolong your life and keep you for those who need you. Now, I want to buy a house, but of course, I am doing it through the bank. The bank will buy the house for me for a value of approximately one million and two hundred thousand. The bank is now saying that I will buy the house from them on the condition that I pay it back over a period of approximately twenty to twenty-five years. Is this permissible or not? And then, after the twenty-five years are over, the ownership of the house becomes mine. Is this permissible or not? This is one aspect. The other aspect, please, Honorable Shaykh Salih, I would like to speak with him on a personal matter after the program. May Allah prolong your life. Thank you, O 'Abd al-Ilah. Please, Shaykh.
Answer:
My brother, if the bank buys the house and takes full ownership of it, and then sells it to you, then ownership transfers from the bank's ownership to your ownership. This sale is a valid sale because the seller owns the item being sold before he sells it to you. So, if he sells it and the contract is completed by offer and acceptance, the house becomes your property from the time of the sale. There is no deferral of ownership to after ten years, or to any other time. However, the bank can, if it wants to secure itself, pledge the house; it can pledge this house until it collects the price, pledging it against its price. This is the correct way. As for making your ownership of the house conditional on you paying it off after ten years, this is not correct. Yes.
The presenter:
May Allah reward you,
Allow me to say: We ask Allah, Mighty and Majestic, that Allah accept from us and from you the fasting of this noble month, and that Allah return to us and to the Islamic ummah (the Muslim community) in the best of conditions. Ameen. My dear brother, with your permission, Honorable Shaykh Salih al-Fawzan, may Allah prolong your life and keep you for those who need you. Now, I want to buy a house, but of course, I am doing it through the bank. The bank will buy the house for me for a value of approximately one million and two hundred thousand. The bank is now saying that I will buy the house from them on the condition that I pay it back over a period of approximately twenty to twenty-five years. Is this permissible or not? And then, after the twenty-five years are over, the ownership of the house becomes mine. Is this permissible or not? This is one aspect. The other aspect, please, Honorable Shaykh Salih, I would like to speak with him on a personal matter after the program. May Allah prolong your life. Thank you, O 'Abd al-Ilah. Please, Shaykh.
Answer:
My brother, if the bank buys the house and takes full ownership of it, and then sells it to you, then ownership transfers from the bank's ownership to your ownership. This sale is a valid sale because the seller owns the item being sold before he sells it to you. So, if he sells it and the contract is completed by offer and acceptance, the house becomes your property from the time of the sale. There is no deferral of ownership to after ten years, or to any other time. However, the bank can, if it wants to secure itself, pledge the house; it can pledge this house until it collects the price, pledging it against its price. This is the correct way. As for making your ownership of the house conditional on you paying it off after ten years, this is not correct. Yes.
The presenter:
May Allah reward you,
Source
قناة «مؤسسة الدعوة الخيرية»، فتاوى على الهواء 14-10-1434هـ - الفوزان — youtube.com (10:22)
The Arabic text is a machine transcription of the audio recording.