Q512 :I intend to buy a house in my native place,
paying 50 percent of the value to start with, and paying the balance by
monthly installments. This will inevitably increase the price. However,
it is the only way I can manage to have a house of my own. Is there
anything wrong with this method of purchase?
A512 : It is well-known practice that when you buy
anything on the basis of paying its price, or part of it, sometime
later, then the price of that article is set higher. In Islamic
terminology, this is referred to as “term” purchase. When you tell the
owner that you want to buy that article and agree to the terms of
payment, he will tell you that you may have that article for say, 50 if
you pay immediately and, 55 if you pay after three months. This is
perfectly acceptable. This is neither interest not usury. It is simply
a raising of the price agreed at the time of purchase in return for a
particular facility of payment. Scholars agree that this is perfectly
permissible. This method applies to buying anything on installments.
There is a mutual benefit to the buyer and seller in this method. The
buyer spreads amount which relieves the burden of having to pay the
whole amount at the beginning and the seller has the netmodity sold and
receives a higher price for it in return for waiting for payment. There
is no harm in that.
Our Dialogue ( Source : Arab News – Jeddah )