Trust (Waqf)‎ contractual arrangement : is the Waqf a contract ?

السؤال

Assalaamu Alaikum Dr Kahf; It is with great interest I read your website and the advices you offer. Thank you. I wonder if you can assist me with the following issue. I have a home I purchased long ago that I paid off for. A relative of mine is interested in purchasing it but is unable to qualify for financing at any of the Islamic institutions here in the US due to his credit not being good. I would like to help him out but I'd like to protect myself and property as best as I could. He wants me to rent to him for 3 years with an option to buy until he fixes his credit (could take a couple of years) at which point he will obtain financing from an Islamic institution and purchase the property. I was speaking to a few investor friends of mine and they offer the following solution. Please comment. Thank you. 1. I create a beneficiary directed living trust and transfer the property to it (I am the trustor, my lawyer as trustee, I am the 100 % beneficiary). 2. I assign 90 % beneficial interest to buyer and retain 10 % beneficial interest myself (co-beneficiaries). 3. The trust leases the property to buyer for market rent for a lease period of 3 years with an option to purchase my 10 % beneficial interest during or at the end of the lease period for a pre-agreed price. 4. Buyer would pay the trust a non-refundable option fee for the right to purchase my 10 % beneficial interest. 5. Buyer agrees to be obligated for all maintenance of the property (as he is a beneficiary occupying the property). 6. The trust will pay the property taxes and insurance of the property. 7. During or at the end of the lease period, buyer has the right to exercise his option to purchase my 10 % beneficial interest. 8. If buyer defaults on his lease payments, the trust will revert his 90 % beneficial interest to me (as other beneficiary) and he will be evicted (with adequate warning). The option fee is non-refundable and all monthly payments are regarded as lease payments for usage of the property. 9. At the end of the lease period, if buyer chooses not to exercise his option there is no penalty on him. Another lease can be renegotiated or I can choose to sell to someone else. 10. If buyer exercises his option to purchase, I am obligated to sell to him my 10 % beneficial interest for the pre-agreed price. 11. I will credit the option fee towards the purchase price. According to Shari’ah, can I structure the above transaction ? Thank you so much (I apologize for the length, but I wanted to cover as much detail as possible) Faheem PS : I realize that I can accomplish the above without the involvement of a trust, but (without getting into details), my state laws puts a heavy burden on option to purchase real property. However, as you know, this is a case of an option to purchase beneficial interest which is personal property and the statutes are different.

جواب الفتوى

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تاريخ النشر

2011-01-13

التخصصات الرئيسية

العلوم الاقتصادية والمالية وإدارة الأعمال
الدراسات الإسلامية

الموضوعات

• الفقه الإسلامي
• العقود
• هندسة الإنشاءات
• الوقف
• العمولات
• الثقة

عدد الصفحات

3

نوع البيانات

فتاوى

لغة النص

الإنجليزية

رقم السجل

BIM-728369

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• AMA