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Resolutions of Iftaa' Board

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

Date Added : 25-01-2018

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. And Allah Knows Best.

 

The Board of Iftaa'

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Summarized Fatawaa

How is the meat of the 'aqīqah to be distributed?

All praise is due to Allah, and may peace and blessings be upon our Master, the Messenger of Allah.
If the 'aqīqah is a recommended one (mandūbah), it is obligatory to give some portion of it in charity to the poor — even if the amount is small — with the minimum being approximately half a kilogram of meat.
The most preferable manner of distribution is to divide it into three equal portions, as with the uḍḥiyyah:
 
One third for the guardian and his household to eat from
One third to be given in charity to the poor
One third to be gifted to friends and neighbours, even if they are wealthy
 
It is furthermore more preferable to send the food to the poor already cooked, rather than inviting them to come and eat. And Allah Almighty knows best.

I`m a pious Muslim woman, but my husband isn`t, what should I do?

You should exercise patience, make supplication that Allah guides him to the straight path, and keep advising him kindly.

What is the ruling on waiving a debt owed by a debtor and counting it toward zakāh?

All praise is due to Allah, and peace and blessings be upon our master, the Messenger of Allah ﷺ.
Waiving a debt owed by a debtor, with the intention of counting it toward zakāh, does not fulfill the zakāh obligation. Rather, it constitutes an ordinary act of charity, for which Allah rewards the giver generously — since one of the conditions for the validity of zakāh is that the person paying it must form the intention of zakāh at the actual moment the wealth is paid out. In this case, the debt has already been established as a standing obligation upon the borrower, so it is not valid to simply redirect the intention toward zakāh after the fact.
It is preferable, instead, for the creditor to first collect the debt from the debtor, and then return to him the amount of money he is required to pay as zakāh — or a portion of it — if the debtor happens to fall under one of the eight categories that Allah, the Exalted, has commanded be given from zakāh.
It is stated in ‘Umdat as-Sālik, from the books of the Shāfi‘ī school: "If someone gives [money] to a poor person, stipulating that the recipient return it to him in payment of a debt owed to him, or says, 'I am making what you owe me into zakāh, so take it [as such]' — this is not valid. But if he gives it to him with the [unstated] intention that the recipient will use it to repay him, or says, 'Repay what you owe me, so that I may [then separately] give it to you as zakāh,' or the debtor himself says, 'Give it to me, so that I may [then] repay you with it' — this is valid, and there is no binding obligation for the recipient to actually fulfill this [informal understanding]." And Allah, the Exalted, knows best.

Is it permissible for a woman to uncover her face while performing Umrah (minor Hajj)?

The woman while in a state of Ihram (ritual consecration) is obligated to uncover her face and hands, but at the same time permitted to let her head-covering garment drape from her head down over her face when non-Mahram (i.e., marriageable) men pass by her. And Allah Knows Best.

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