An agreement to buy a house back after selling it

Question

Question: Owing to compulsion, Zayd sells his house in Bakr’s name and also has it registered, on this basis: “If I am able to, then after one year I will pay the sum and obtain it (back), and this house will be Bakr’s.” Is this method permissible, and will it be valid for Bakr to use this house at his disposal or not?

Answer

Selling with this condition is a defective sale (bayʿ fasid); rather, it has the ruling of a pledge (rahn). This is called bayʿ al-wafaʾ. That house will be a pledge, and it will not be valid for the pledgee (murtahin) to benefit from it. If, however, the sale is concluded without a condition, and after that, in another session (majlis)

Source: Fatawa Mahmudiyya

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