What is the ruling on a lease that ends in ownership?
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The questioner : May Allah reward you, O Shaykh: Buying a car through installments that end in ownership?
The Shaykh : Buying a car through installments that end in ownership means that as soon as he buys it, he owns it.
The questioner : No, the lease means ...
The Shaykh : Okay, tell me, a lease that ends in ownership, how is that?
The questioner : It means it is in the company's name.
The Shaykh : Huh?
The questioner : And it is not in the buyer's name until he finishes all the installments, then they transfer it to his name.
The Shaykh : So does that mean it is a suspended sale?
The questioner : Yes, that is right.
The Shaykh : A suspended sale is not permissible, but I tell you the matter is currently under the consideration of the Committee of Senior Scholars and is a subject of research. After they research it, if Allah wills, it will become clear and they will issue a ruling based on what Allah guides them to. If they are correct, they have two rewards, and if they are wrong, they have one reward. So wait until the fatwa is issued soon, if Allah wills.
The questioner : The person bought it, O Shaykh.
The Shaykh : He bought it, is he trying to pay its value now and redeem it from them?
The questioner : He cannot.
The Shaykh : Okay, is he trying to cancel the contract?
The questioner : No, there is a contract between them.
The Shaykh : He cannot cancel it. He says, "Come, my brother, lease me the car." The lease does not end in ownership, because there is a difference between a lease and ownership now. For example, if the car is in my hand through leasing and it gets damaged, on whom does the damage fall?
The questioner : On the lessee.
The Shaykh : No, it falls on its owner if I did not commit any transgression or negligence, then I am not liable for it. But if it were his property, it would fall on him because the contract gave the man the full price of it, whether I transgressed or not, whether I was negligent or not. Yes.
The Shaykh : Buying a car through installments that end in ownership means that as soon as he buys it, he owns it.
The questioner : No, the lease means ...
The Shaykh : Okay, tell me, a lease that ends in ownership, how is that?
The questioner : It means it is in the company's name.
The Shaykh : Huh?
The questioner : And it is not in the buyer's name until he finishes all the installments, then they transfer it to his name.
The Shaykh : So does that mean it is a suspended sale?
The questioner : Yes, that is right.
The Shaykh : A suspended sale is not permissible, but I tell you the matter is currently under the consideration of the Committee of Senior Scholars and is a subject of research. After they research it, if Allah wills, it will become clear and they will issue a ruling based on what Allah guides them to. If they are correct, they have two rewards, and if they are wrong, they have one reward. So wait until the fatwa is issued soon, if Allah wills.
The questioner : The person bought it, O Shaykh.
The Shaykh : He bought it, is he trying to pay its value now and redeem it from them?
The questioner : He cannot.
The Shaykh : Okay, is he trying to cancel the contract?
The questioner : No, there is a contract between them.
The Shaykh : He cannot cancel it. He says, "Come, my brother, lease me the car." The lease does not end in ownership, because there is a difference between a lease and ownership now. For example, if the car is in my hand through leasing and it gets damaged, on whom does the damage fall?
The questioner : On the lessee.
The Shaykh : No, it falls on its owner if I did not commit any transgression or negligence, then I am not liable for it. But if it were his property, it would fall on him because the contract gave the man the full price of it, whether I transgressed or not, whether I was negligent or not. Yes.