Buy and leaseback contracts
Question
I want to ask about buy and leaseback in Islam. Is it allowed?
There is this company selling shops in a mall with this buy and leaseback contracts where we own the shop but rights of giving it on rent resides with company and we get a fixed rent of 0.7% with 10% raise per year.
Also the company guarantees 20% price appreciation per year if we sell the shop back to them. All these are written in a single contract. Isnt this just the same as keeping money in banks with a fixed profit?
Answer
It is incorrect.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
Fatawa SA is an independent, read-only index of fatawa already published by Mufti Online — Madrasah Ta'leemuddeen. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.