No agreement between the parties of the terms of payment when paying back a loan
Question
Is it permissible to buy a house from An Nahl. If the house is 600 000 for example, they put up a mark up of 7 % if you pay within 10 months, a mark up of 10% if you pay within 24 months and so on and so forth. It's fixed profits. Please let me know if its permissible?
Answer
If the deal was structured as a 7% markup if you pay in 10 months and 10% if you pay in 24 months and there was no agreement between the parties of the terms of payment then this is wrong and invalid.
And Allah Ta'ala (الله تعالى) knows best.
- Answered by
- Mufti Ebrahim Salejee (Isipingo Beach)
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