What is the ruling on a lease that ends in ownership?
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Question:
May Allah reward you. This questioner asks: What is the ruling on installment sales, and on a lease that ends in ownership?
Answer:
There is nothing wrong with installment sales. You may sell for a cash price, or for a deferred price in installments, or for a deferred price in a single term. Allah has made selling lawful and has forbidden riba (usury or interest). The Prophet (peace and blessings be upon him) bought on credit; he (peace and blessings be upon him) bought on credit. As for a sale that ends in ownership, this is not permissible. A decision has been issued by the Council of Senior Scholars stating that it is not permissible, because it combines two contracts that differ in their rulings, and because it leads to an unknown outcome, since it is not known what will happen to this lessee. It is a sale of an unknown item. Yes.
May Allah reward you. This questioner asks: What is the ruling on installment sales, and on a lease that ends in ownership?
Answer:
There is nothing wrong with installment sales. You may sell for a cash price, or for a deferred price in installments, or for a deferred price in a single term. Allah has made selling lawful and has forbidden riba (usury or interest). The Prophet (peace and blessings be upon him) bought on credit; he (peace and blessings be upon him) bought on credit. As for a sale that ends in ownership, this is not permissible. A decision has been issued by the Council of Senior Scholars stating that it is not permissible, because it combines two contracts that differ in their rulings, and because it leads to an unknown outcome, since it is not known what will happen to this lessee. It is a sale of an unknown item. Yes.
Source
www.alfawzan.af.org.sa
The Arabic text is copied verbatim from the original source, without any edits.