The Ruling on Taking a Car by Lease with Transfer of Ownership
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What is the ruling on buying a car on installment that ends with ownership?The Shaykh: What does it mean to buy a car on installment that ends with ownership, and that as soon as he buys it, he owns it?The questioner: By lease.
The Shaykh: Okay, tell me: lease with transfer of ownership, how is it?The questioner: Meaning, it is in the company's name, not in the buyer's name, until he finishes all the installments, and then they transfer it to his name afterwards.
The Shaykh: It means a suspended sale.
The questioner: Yes.
The Shaykh: A suspended sale is not permissible, but I tell you: the issue is currently under the consideration of the Council of Senior Scholars, and it is a subject of research. After they research it, if Allah wills, it will become clear. They will issue a ruling based on what Allah guides them to. If they are correct, they have two rewards; if they are wrong, they have one reward.
Wait until the fatwa is issued soon, if Allah wills.
The questioner: He has already bought it, O Shaykh?The Shaykh: He is trying to redeem its value now.
The questioner: He cannot.
The Shaykh: He is trying to cancel the contract.
The questioner: There is a contract between them.
The Shaykh: He cannot cancel it. He says: Come, my brother, lease me the car in a lease that does not end with ownership; because there is a difference between lease and ownership.Now, for example: If the car is in my hand by lease and it is damaged, who is it damaged upon? Upon its owner. If I did not commit any transgression or negligence, I am not liable for it. If it were his property, and it was damaged with me, because he gave the man the full price, whether I transgressed or not, whether I was negligent or not.
The Shaykh: Okay, tell me: lease with transfer of ownership, how is it?The questioner: Meaning, it is in the company's name, not in the buyer's name, until he finishes all the installments, and then they transfer it to his name afterwards.
The Shaykh: It means a suspended sale.
The questioner: Yes.
The Shaykh: A suspended sale is not permissible, but I tell you: the issue is currently under the consideration of the Council of Senior Scholars, and it is a subject of research. After they research it, if Allah wills, it will become clear. They will issue a ruling based on what Allah guides them to. If they are correct, they have two rewards; if they are wrong, they have one reward.
Wait until the fatwa is issued soon, if Allah wills.
The questioner: He has already bought it, O Shaykh?The Shaykh: He is trying to redeem its value now.
The questioner: He cannot.
The Shaykh: He is trying to cancel the contract.
The questioner: There is a contract between them.
The Shaykh: He cannot cancel it. He says: Come, my brother, lease me the car in a lease that does not end with ownership; because there is a difference between lease and ownership.Now, for example: If the car is in my hand by lease and it is damaged, who is it damaged upon? Upon its owner. If I did not commit any transgression or negligence, I am not liable for it. If it were his property, and it was damaged with me, because he gave the man the full price, whether I transgressed or not, whether I was negligent or not.