What is the ruling on the sale of a residence between a buyer and an institution, where this residence involves two contracts within a single contract?
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The questioner : Okay...
The questioner: All right, O Shaykh, a third, fourth, or fifth issue; I do not know.
The Shaykh: Where is the third? It has become the sixth...
The questioner: An issue regarding a sale, also a sale between a buyer and an institution for a residence, but this residence has two contracts in one. How is that done? A contract between the institution and the individual buyer, and a contract between this selling institution and another institution responsible for construction, given that there is riba (usury or interest) in the dealings between the two institutions. The two institutions are involved, but the buyer is not included in the riba (usury or interest) between the two institutions. The riba (usury or interest) is a benefit paid by the selling institution to the institution responsible for construction, which is, in other words, a riba (usury or interest) bank. What do you say, O Shaykh?
The Shaykh: I mean, from whom does the buyer purchase?
The questioner: The buyer purchases from what is called the municipality in our area.
The Shaykh: I do not care what it is called. Does he buy from the bank or from where?
The questioner: No, from this institution called the municipality, not the bank. But there is a contract between the bank and this institution called the municipality, which sells this contract with a percentage increase in the price.
The Shaykh: This is a situation I do not know, but I will speak in general terms. If this type of transaction is common among you, it appears that there is cooperation in riba (usury or interest), and cooperation in riba (usury or interest) is among the evil that falls under the general meaning of His saying, the Exalted:[Al-Ma'idah 5:2], and in his saying, peace and blessings be upon him: Sahih Muslim 1598.
The questioner: All right, O Shaykh, a third, fourth, or fifth issue; I do not know.
The Shaykh: Where is the third? It has become the sixth...
The questioner: An issue regarding a sale, also a sale between a buyer and an institution for a residence, but this residence has two contracts in one. How is that done? A contract between the institution and the individual buyer, and a contract between this selling institution and another institution responsible for construction, given that there is riba (usury or interest) in the dealings between the two institutions. The two institutions are involved, but the buyer is not included in the riba (usury or interest) between the two institutions. The riba (usury or interest) is a benefit paid by the selling institution to the institution responsible for construction, which is, in other words, a riba (usury or interest) bank. What do you say, O Shaykh?
The Shaykh: I mean, from whom does the buyer purchase?
The questioner: The buyer purchases from what is called the municipality in our area.
The Shaykh: I do not care what it is called. Does he buy from the bank or from where?
The questioner: No, from this institution called the municipality, not the bank. But there is a contract between the bank and this institution called the municipality, which sells this contract with a percentage increase in the price.
The Shaykh: This is a situation I do not know, but I will speak in general terms. If this type of transaction is common among you, it appears that there is cooperation in riba (usury or interest), and cooperation in riba (usury or interest) is among the evil that falls under the general meaning of His saying, the Exalted:
but do not cooperate in sin and aggression
وَلَا تَعَاوَنُوا عَلَى الْإِثْمِ وَالْعُدْوَانِAllah's Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses
لَعَنَ اللهُ آكل الربا ، وموكله ، وكاتبه ، وشاهديه
Source
www.al-albany.com
The Arabic text is copied verbatim from the original source, without any edits.