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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

What is the ruling on taking a loan from an interest-based bank (a usurious bank) to buy an apartment for housing, noting that I am renting at a high amount relative to my income, and I am an employee? Also, considering that the conditions of Islamic banks are strict, and I cannot obtain the full amount from them, is it permissible to take a loan to purchase an apartment or not? May Allah reward you.

 

 

 

 

 

Usury (interest) is prohibited by Islamic law, and the Messenger of Allah, peace be upon him, cursed the one who consumes usury, the one who pays it, its recorder, and its witnesses. Whoever leaves something for the sake of Allah, Allah will compensate them with something better and greater, and Allah will provide relief after hardship. Needing a place to live does not permit taking a loan with interest. And Allah Knows Best.
 
 
 
 
 

Is it permissible for a financially capable woman to pay the Zakat to her sons or one of them?

It is permissible for a mother to give her children from zakat if they are eligible to receive it, even though she is obligated to provide for them. This is based on the saying of the Prophet Muhammad (PBUH) regarding Zainab, the wife of Abdullah Ibn Mas'ud (may Allah be pleased with them): "Your husband and your children are more deserving of your charity" [Al-Bukhari]. And Allah Knows Best.
 
 
 
 
 

If a father stops his daughter from getting married, is it permissible for her to conclude the marriage contract herself?

It is permissible for the father to stop his daughter from getting married if there was a lawful reason for that, and she isn`t allowed to conclude the marriage contract without her guardian. However, if her father denied her right in getting married for an unlawful reason, then she should go to court.

My husband wanted to sell a piece of land that was his own, but his father insisted that he transfer the land in his (the father’s) name so that he could sell it at a higher price. Then, my husband and his father would split the price. After my father-in-law sold the land, he denied everything and refused to acknowledge my husband’s right. My father-in-law passed away a year ago, and my husband’s brothers divided the inheritance, refusing to acknowledge that this land was a trust held by their father for my husband until it was sold. Are they sinful for knowingly denying that the land belongs to my husband, and what is the ruling on praying against them?
 
 
 
 
 

All perfect praise be to Alalh, The Lord of The Worlds, and may His Peace and Blessings be upon our Prophet Muhammad and upon all of his family and companions.
Among the rights of the deceased upon their heirs are: preparing them for burial at death, settling their debts, returning people’s rights to them, executing their will, and then dividing their estate. What was mentioned in the question falls under the rights of others, even if they are among the heirs, and the deceased is not absolved of it unless it is returned to its rightful owners. This is because Allah, Almighty, forbids consuming others' wealth/properties unjustly. However, do not give up on seeking a solution by involving righteous and well - respected individuals who may have influence over them, in the hope that Allah guides them to goodness and correctness. As for supplicating against them, the prayer of the oppressed is not rejected, even if the oppressed person is not a Muslim. And Allah knows best.
 
 
 
 
 

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