Borrowing a car from someone who does not own it, writing the contract, and giving him the money in the session
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The third question of Fatwa No. ( 7570 )
Q3: I borrowed a Datsun car from a person, and we wrote the sale contract, and witnesses testified to it. I am eager to get married, and only one week remains. He gave me the car's amount in cash, 15,700 riyals, while the debt is 25,000 riyals. After a while, I heard that exchanging money for money is riba (usury or interest). I am in debt for the car, and he did not have a car; he had to bring it from Jeddah. If there is riba in this, what is obligatory for me? Do I owe an expiation?
A3: If the situation is as described, that sale is forbidden; because in reality it is a sale of dirhams for dirhams, and that is the forbidden riba (usury or interest) established by the Qur'an, the Sunnah, and the consensus of the scholars. It is obligatory for you to return the dirhams you received from him without any increase; because the sale is invalid.
Q3: I borrowed a Datsun car from a person, and we wrote the sale contract, and witnesses testified to it. I am eager to get married, and only one week remains. He gave me the car's amount in cash, 15,700 riyals, while the debt is 25,000 riyals. After a while, I heard that exchanging money for money is riba (usury or interest). I am in debt for the car, and he did not have a car; he had to bring it from Jeddah. If there is riba in this, what is obligatory for me? Do I owe an expiation?
A3: If the situation is as described, that sale is forbidden; because in reality it is a sale of dirhams for dirhams, and that is the forbidden riba (usury or interest) established by the Qur'an, the Sunnah, and the consensus of the scholars. It is obligatory for you to return the dirhams you received from him without any increase; because the sale is invalid.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.