Shouf’a and loan reduction : permissibility of Shouf’a

Fatawa Question

Assalamu Alaykum Brother Monzer, I hope this e-mail finds you well and in the best of states. Brother Monzer I have a short story that I would love if you could give me your advice. A friend of mine from San Francisco bought a piece of land about 25000 m2 in Tunisia where I'm from. The land is initially for agricultural purposes however he knew at the time of the purchase thanks to his father's information that the land will be soon a residential area. The change in the status of the land might bring him a return of about 700 %. The brother of the Moez seller's sold also a second piece of land 30000 m 2 adjunct to Moez's land. According to Moez a lot of people want to buy the piece of land as they know that a change in the status of the land from agricultural to residential is very likely. Now Moez approached me and told me that the law in Tunisia permits him the right of the "Shouf’a" which will give him the first right to buy the second piece of the land. And that since neither the second buyer nor the second brother told him about the sales of the second piece of land he could exercise his right of “Shouf’a” in Tunisia tribunal and get the second buyer out of the land after paying him the price of the land plus legal and administrative fees. Since a good friend of mine could not afford at this point to come up with all the money that needs to be raised to pay off the second piece of land he asked me if we could purchase it together. That means I lend him half of the price and once he got the judgment in his favor he will share with me the second piece of land. Obviously my intention in the transaction if I'm going to proceed with is to profit from the sale of the land once its status would change to residential from agricultural. My concern is that is this transaction Islamically permissible ? And by doing so I'm I not being unethical toward the person who now owns the second piece of land who I would assume is aware of the deal. Brother Monzer I would really appreciate if you could give me your advice in the matter. May Allah protect you and Jazaka Allahu Khairan. Wassalam Mokhtar

Fatwa

Click hereto view more

Publication Date

2009-02-10

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Loans

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-734623

• APA
• MLA
• AMA