Loan in the disguise of sale : getting a usufruct as a benefit from a loan

Fatawa Question

Assalaamu Alaikum. Here is a common practice of giving one's house to the use of second party on lease for a specific period (say one or three years), by collecting a good sum of money from the second party. The second party uses the house and he does not have to pay the monthly rent to the building owner but he has to do routine maintenance works of the house. While vacating the house, the second party gets back the initial lease amount he paid, from the building owner. Is this practice allowed in Islam ?

Fatwa

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Publication Date

2001-03-23

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Loans
• Usufruct

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726755

• APA
• MLA
• AMA