Fatwa #1369626 November 2005India
Mr. A is in need of money and plans to rent his house for a large deposit and no rent. He is willing to rent his house to anyone who can give him the money which he will return without any deduction after the agreement period is over.
Question
Mr. A is in need of money and plans to rent his house for a large deposit and no rent. He is willing to rent his house to anyone who can give him the money which he will return without any deduction after the agreement period is over.
Mr B is in need of a house to stay but can only afford to give monthly rent. He does not have money to give large deposit to Mr.A.
Mr. B asks his friend Mr C to pay the large deposit to Mr A and Mr B pays the monthly rent in advance to Mr C.
Mr A has given permission that the house will be rented by Mr C but Mr B will be staying in it.
Please comment in detail on this transaction in the light of Islam. Is it Jayaz or not?. If not, then what should be done to correct it, if such a transaction has already been entered into?
Answer
The following are some proposals to make the deal Shari’ah compliant:
1. A may sell the house to C and have a mutual agreement to repurchase the house either on the original purchase price or on a mutually agreed prive. In principle, C will be the owner of the house. It will be his moral duty to honour the agreement to sell the house to A as per the mutual agreement. However, A cannot compel C to do so if he refuses to sell the house. C may then hire the house to B.
2. A may take a loan from C and place his house as a collateral. A may grant permission to C for B to live in the house.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai