Distinguishing Between Tawarruq and the Buy-Back Sale
Machine translationRead the Arabic original
Question:
And may Allah bless you. Honorable Shaykh, regarding sales, my question is: What are examples of tawarruq and the buy-back sale, and which one is permissible?
Answer:
Tawarruq is when a person needs money and there is no one to lend him a benevolent loan; there is no one to lend him a benevolent loan, and he is in need of money. In this case, it is permissible for him to engage in tawarruq. He performs tawarruq by purchasing a commodity for a deferred price, then selling it to meet his need from its price. When the due date arrives, he pays the one who sold it to him, the creditor. It is not permissible for the creditor to buy it back if he sold it for a deferred price; it is not permissible for him to buy it back, because that is the buy-back sale. His money returns to him in its original form, so this is not permissible. Someone else must buy it. Yes.
And may Allah bless you. Honorable Shaykh, regarding sales, my question is: What are examples of tawarruq and the buy-back sale, and which one is permissible?
Answer:
Tawarruq is when a person needs money and there is no one to lend him a benevolent loan; there is no one to lend him a benevolent loan, and he is in need of money. In this case, it is permissible for him to engage in tawarruq. He performs tawarruq by purchasing a commodity for a deferred price, then selling it to meet his need from its price. When the due date arrives, he pays the one who sold it to him, the creditor. It is not permissible for the creditor to buy it back if he sold it for a deferred price; it is not permissible for him to buy it back, because that is the buy-back sale. His money returns to him in its original form, so this is not permissible. Someone else must buy it. Yes.
Source
نور على الدرب - الفوزان - 03/070 — archive.org (9:31)
The Arabic text is a machine transcription of the audio recording.