What is the ruling on purchasing a plot of land from a company using the murabahah system?
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Question:
The questioner says: I would like to buy a plot of land, and I was told that Al-Rajhi Bank buys the land in its name, then negotiates with me to pay for it in installments, adding a profit. Is this permissible?
Answer:
This is not permissible because it is selling what they do not own. If Al-Rajhi or any other entity has goods for sale—cars, land, or houses—and they own those goods, there is no harm in you coming and buying from them, whether for immediate payment or deferred payment. However, if they have nothing, and you go to them when they have nothing, and you negotiate with them, fill out the papers, and sign them, and then, once you are committed, they go to buy it, that is forbidden. The Messenger (peace and blessings be upon him) said: Do not sell what you do not have.
The questioner says: I would like to buy a plot of land, and I was told that Al-Rajhi Bank buys the land in its name, then negotiates with me to pay for it in installments, adding a profit. Is this permissible?
Answer:
This is not permissible because it is selling what they do not own. If Al-Rajhi or any other entity has goods for sale—cars, land, or houses—and they own those goods, there is no harm in you coming and buying from them, whether for immediate payment or deferred payment. However, if they have nothing, and you go to them when they have nothing, and you negotiate with them, fill out the papers, and sign them, and then, once you are committed, they go to buy it, that is forbidden. The Messenger (peace and blessings be upon him) said: Do not sell what you do not have.
Source
قناة «العلامة الدكتور صالح الفوزان»، ما حكم شراء قطعة أرض من شركة بنظام المرابحة؟ #فتاوى الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.