Ruling on the transfer of a pledge to the pledgee if the pledgor does not repay
Machine translationRead the Arabic original
Question:
He says in another question: We have a custom in Yemen, which is that if one takes a loan from a person, he asks me for a pledge that I pay to him, such as a piece of land that I own, or something similar. He stipulates a period of one or two years, and if I do not pay him the amount before the end of the specified period, the land becomes his property. Is there anything wrong with this, and what is the ruling of the Shari'ah in this matter? May Allah reward you with good.
Answer:
This is a matter for the court. You and your partner should go to the court, and the court will look into the matter, if Allah wills. Yes.
The presenter : May Allah reward you with good. And if it has not yet happened, but they are considering it, what is your guidance, Your Eminence?
The Shaykh : As for a pledge, if it is a simple pledge, there is nothing wrong with it. But if the pledge is for the purpose of utilizing it, such as land that he plants and takes its produce in exchange for the debt, this is not permissible. However, if it is a pledge, meaning it serves as a document, and the land belongs to its owner, and the one who pledged it plants it and benefits from it, there is nothing wrong with it.
As for making it a ruse to take the land so he can plant it and benefit from it in exchange for giving this man time on the loan, this is a loan that yields benefit, and it is not permissible. As for compelling him to sell, this is for the court to look into the matter. If they dispute and he does not give him his right, the court looks into the matter of selling the pledge or not. Yes.
The presenter : He does not own the land unless he breaches the agreement between them.
The Shaykh : Yes, the land is not handed over to him until he complains to the court.
The presenter : May Allah reward you with good.
He says in another question: We have a custom in Yemen, which is that if one takes a loan from a person, he asks me for a pledge that I pay to him, such as a piece of land that I own, or something similar. He stipulates a period of one or two years, and if I do not pay him the amount before the end of the specified period, the land becomes his property. Is there anything wrong with this, and what is the ruling of the Shari'ah in this matter? May Allah reward you with good.
Answer:
This is a matter for the court. You and your partner should go to the court, and the court will look into the matter, if Allah wills. Yes.
The presenter : May Allah reward you with good. And if it has not yet happened, but they are considering it, what is your guidance, Your Eminence?
The Shaykh : As for a pledge, if it is a simple pledge, there is nothing wrong with it. But if the pledge is for the purpose of utilizing it, such as land that he plants and takes its produce in exchange for the debt, this is not permissible. However, if it is a pledge, meaning it serves as a document, and the land belongs to its owner, and the one who pledged it plants it and benefits from it, there is nothing wrong with it.
As for making it a ruse to take the land so he can plant it and benefit from it in exchange for giving this man time on the loan, this is a loan that yields benefit, and it is not permissible. As for compelling him to sell, this is for the court to look into the matter. If they dispute and he does not give him his right, the court looks into the matter of selling the pledge or not. Yes.
The presenter : He does not own the land unless he breaches the agreement between them.
The Shaykh : Yes, the land is not handed over to him until he complains to the court.
The presenter : May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.