Resolutions of Iftaa' Board



Resolutions of Iftaa' Board

Resolution No.(1)“ Sharia Ruling on Lease Premium “

Date Added : 02-11-2015

Resolution No.(1) by the Board of Iftaa`, Research and Islamic Studies:   
 “ Sharia Ruling on Lease Premium “

 

Question: What is the ruling of Sharia on lease premium and the money paid against that, and is it permissible according to the rulings of Islamic Sharia?
Answer: All perfect praise is due to Allah, The Lord of The Worlds; and may His Blessings and peace be upon our Prophet Mohammad and upon all his Family and Companions.

Ijarah(hiring) is permissible in Islamic Sharia since the Prophet(PBUH) was sent to humanity  while people were leasing and taking on lease, so he permitted that. It is well known that Ijarah is a contract whereby two parties agree upon a certain benefit in return for a compensation, that is money.
Ijarah is actually purchasing a benefit, and it is permissible to conclude an Ijarah contract upon lawful benefits, so the benefit of the leased estate is the right of the lessee, and so he enjoys the right of staying in the estate upon which the leasing contract has been concluded. Islamic Sharia has given a lessee the right of staying and residing in the leased estate, so none has the right to drive him/her out of it, and this right has a financial value according to Islamic Sharia as well as custom.
If a lessee was driven out of the estate without being paid the value of that right(lease premium), he/she may not be able to find a similar one without paying substantial amounts of money.
A lease premium is an integral part of the rent that has been agreed upon by both parties(lessor and lessee); therefore, it is permissible that the lessee pays it to the owner as a part of the rent i.e. the value of the benefit. The lessee is also permitted to sell his right in this benefit and take the lease premium from whoever wishes to purchase it for a price higher, or  lower  than that which he had paid to the owner in the first place.
On the other hand, Muslim jurists  permitted employing such a method on the estates pertaining to Islamic Awqaf(endowments) during the tenth, ninth, and eighth  centuries (H). They passed a legal ruling which  states that the Awqaf administrator has no authority to drive a lessee out of an estate so long as the latter is willing to pay the rent agreed upon in the contract. This way, Muslim jurists have given the lessee of an Awqaf estate the right to remain in it and permitted him to receive a lease premium in case he wished to vacate the estate. By analogy, it is permissible for a lessee, in ordinary types of estates, to demand a lease premium so long as the law grants him the right to stay in the estate even after the expiry of the contact. The law permitted this as a regulative measure  meant to prevent injustice, and after consulting people of sound opinion and expertise; it is parallel to putting price tags on commodities to prevent traders from rigging prices.

It is a purely commercial transaction that  involves buying and selling beyond suspicions of Riba(usury), or unlawfulness; therefore, contracting parties aren`t considered sinful so long as the contract has been concluded with their mutual consent. It is also impermissible for any party to revoke the contract except with the consent of the other party.

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Summarized Fatawaa

What is the ruling of Islamic Law on obtaining financing from Islamic banks by bringing invoices in prior arrangement with the seller, then taking the cash after the financing is approved — with the purpose of settling debts and buying a car?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
It appears from the transaction described that its underlying purpose is to obtain cash through resorting to a legal artifice (ḥīlah/tawarruq-style trick), and it is not permissible to engage in such trickery or to coordinate with the various parties merely to obtain liquidity. This is because such artifices bring the sale closer in reality to a ribā-based (usurious) transaction, even if it outwardly appears otherwise.
The Prophet ﷺ said: "Do not commit what the Jews committed, thereby making lawful what Allah has made unlawful through the flimsiest of tricks." This was related by Ibn Baṭṭah in his book Ibṭāl al-Ḥiyal (p. 47), and many scholars have graded it as ḥasan (sound/acceptable).
We have already explained the impermissibility of engaging in such deceptive dealings with Islamic banks in Fatwa No. 516, so please refer to it. And Allah, the Exalted, knows best.

What is the ruling of Islamic Law on opening an account in a commercial bank in order to deposit a sum and use it for personal purposes, such as transfers and electronic payments?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah.
It is forbidden for a Muslim, if he has a choice, to open an account in an interest-based (ribawī) bank, even if the account earns no interest, because doing so assists in ribā, based on the saying of Allah the Exalted (which means): “And cooperate in righteousness and piety, but do not cooperate in sin and aggression.” [al-Māʾidah/2]
This is because such banks invest deposited funds in forbidden ribā-based transactions, and depositing with them is therefore a form of assisting them in what is unlawful. Assisting in what is unlawful is prohibited by the Sharīʿah. However, if there is a pressing need to open an account in an interest-based bank and it is not possible to open one in an Islamic bank, there is no objection to doing so.
The ruling on bank interest and the prizes distributed by interest-based banks was previously explained in Fatwa no. (471). And Allah Almighty knows best.

How can I love the prayer (Salah) and start praying?

Praise be to Allah, and peace and blessings be upon our Master, the Messenger of Allah.
 
Love for the prayer (Salah) comes when you realize that this world is fleeting and the Hereafter is everlasting. Your prayer is the righteous deed that will comfort you in your grave and be your salvation before Allah in the Hereafter. Do you not wish to attain tranquility in this life and Paradise in the next? Reflect upon your state and do not delay, for life does not wait. We ask Allah to grant us and you steadfastness (Thabat).

What are the Sharia consequences when the sacrificial time for the uḍḥiyyah comes to an end?

 
 
 
 
 
 

 
In the Name of Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
 
If the sun sets on the final day of Tashriq (the 13th of Dhu al-Hijjah) and the Udhiyah (sacrificial animal) has not yet been slaughtered, its designated time has expired. Should a person slaughter it after this point, it will not be counted as an Udhiyah.
 
However, if the sacrifice was a vowed one (Mandhurah), they are strictly obligated to slaughter it as a makeup act (Qada’), and its meat must be distributed entirely according to the rules governing vowed sacrifices.
 
It is stated in Bushra al-Karim (p. 702): "If one slaughters after sunset on the final day [of Tashriq]... it does not count as an Udhiyah, unless it was a vowed sacrifice, in which case it is fulfilled as a makeup act (Qada’)." And Allah the Almighty Knows Best.