The Conditions of Lawful Tawarruq

Question:
This questioner says: I took a tawarruq sale from one of the banking institutions. He says: I want to know the ruling of the Shari'ah regarding tawarruq from sales, may Allah preserve you?

Answer:
Tawarruq from a bank or from anyone else is that the commodity is in the ownership of the creditor-seller before he concludes the sale with you; it is in his ownership, then he sells it to you for a deferred price. You take possession of it from him, you sell it to someone else, and you benefit from its price. When the term arrives, you pay him the value of the commodity, which is a debt in your liability. This is the issue of tawarruq, and these are its conditions; it is not valid except with these conditions: that the commodity is owned by the seller before the contract, that you take possession of it from him, that you sell it to someone else or consume it, and that when the term arrives you pay him. Yes.

The presenter:
May Allah reward you,