Sale with conditions in the contract : interest clause in a sale contract

Fatawa Question

Assalamu Alaikum : Jazaka Allah Khairan for this svc. I am selling a property (in UK) and due to incentive problem my solicitor has put interest clauses in lease and contract. I'm afraid to sign documents coz those who do are cursed (Sahih Muslim) clause in the lease (1) : penalizes the lessee by charging him interest if he is late in paying the lessor the annual ground rent. Clause in the sale contract (2) : if the buyer doesn't pay for the house on time-they are charged interest. In (1)-What other clauses can I use to combat the incentive problem-bearing in mind that I intend to sell the lease (to a Non-Muslim). In (2)-Can I use that to threaten but not really charge if they pay me late hence it’s not witnessing an actual transaction-my Niyyah is clean. Please advise as soon as you can. Jazaka Allah Khairan Notes : NB. (A) I intend to sell the freehold (lease) after selling the house and my lawyer tells me that nobody will probably want to buy the lease if it doesn't have interest payment clause in it.

Fatwa

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Publication Date

2001-04-20

Main Subjects

Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Islamic jurisprudence
• Sales
• Contracts
• Witnesses
• Usury

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-726794

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• MLA
• AMA