The Issue of Tawarruq
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The Issue of Tawarruq
What is tawarruq? And what is its ruling?
Tawarruq: It is when a person needs money to buy a commodity, but cannot find anyone to lend him, so he goes to a person and buys a commodity from him for a deferred price that is higher than its spot price, then he takes the commodity and sells it, and buys with its price the commodity he wants.
Likewise, a person may need land to build a residence on, but he has no money and cannot find anyone to lend him, and the owner of the land refuses to sell it for a deferred price,He goes to another person and says: saying, "Sell me cars for a deferred price higher than the spot price," then he takes the cars, sells them, and buys with their price this land.
This is tawarruq,Meaning: where a person needs money, so he buys what is worth a thousand for a thousand and one hundred on credit, to sell it and get his money to buy what he needs.
This is tawarruq.
The scholars (may Allah have mercy on them) differ on this: Some of them permitted it,And some of them said: it is disliked, and some said it is forbidden, and Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him) was strict in this regard.
What is tawarruq? And what is its ruling?
Tawarruq: It is when a person needs money to buy a commodity, but cannot find anyone to lend him, so he goes to a person and buys a commodity from him for a deferred price that is higher than its spot price, then he takes the commodity and sells it, and buys with its price the commodity he wants.
Likewise, a person may need land to build a residence on, but he has no money and cannot find anyone to lend him, and the owner of the land refuses to sell it for a deferred price,He goes to another person and says: saying, "Sell me cars for a deferred price higher than the spot price," then he takes the cars, sells them, and buys with their price this land.
This is tawarruq,Meaning: where a person needs money, so he buys what is worth a thousand for a thousand and one hundred on credit, to sell it and get his money to buy what he needs.
This is tawarruq.
The scholars (may Allah have mercy on them) differ on this: Some of them permitted it,And some of them said: it is disliked, and some said it is forbidden, and Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him) was strict in this regard.