The reality of bayʿ al-wafaʾ

Question

Zayd wants to sell his own house to his nephew (his sister’s son) Bakr. Since the money is not available at present, Bakr wants to give one of his own houses temporarily, for some period, to someone and take money, so that he can pay his (maternal) uncle the price of the house. What is to be ascertained is: is there, according to the Shariʿa, a way by which the money is obtained, the house does not go away permanently, and neither the one giving the house nor the one taking it becomes sinful?

Answer

Although bayʿ al-wafaʾ is called a sale, in reality it is nothing but a pledge (rahn), and it is impermissible for the pledgee to benefit from the pledged item. Bayʿ al-wafaʾ should not be made a stratagem for interest. Mawlana ʿAbd al-Hayy has written an independent treatise, al-Fulk al-Mashhun (الفلك المشحون)

Source: Fatawa Mahmudiyya

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