Buying properties on interest : buying commercial property on interest

Fatawa Question

Assalaamu Alaikum WRWB, Brother, I have benefited by several of your answers related to Islamic finance at IslamOnline, and May Allah (SWT) bless your work and reward you with the best place in Jannah in the hereafter. I have a question I'd like to ask you : one of my relatives has bought a commercial building as an investment in India using financing from a conventional bank (they are paying interest on this building to the bank). The family already owns a home and bought this commercial building to earn additional income by renting it to companies. Before they bought the place, the first floor of the building was used by a conventional bank. Since the first floor was built to suit a bank environment, the family is looking to rent this to a conventional bank. I have two questions related to this situation : (i) Is it okay to purchase land or building for investment purposes by getting a loan from a conventional bank when one already owns a home ? If it is not, can one seek Islamic financing to purchase land or building for investment purposes ? (ii) Is it okay to rent the property to a conventional bank, who deals with interest, and take their money as rent ? If not, can one rent the property to an Islamic financial institution ? I'd appreciate your quick response so that I can pass on the feedback to my relatives as I see it as my duty to assist them. JazakAllahu Khairan,

Fatwa

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Publication Date

2007-11-22

Main Subjects

Economics & Business Administration
Islamic Studies

No. of Pages

2

Data Type

Fatawa

Language

English

Record ID

BIM-785810

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