Bayʿ al-wafaʾ (sale with the condition of repurchase)

Question

Question: A Muslim sells his property or house to another Muslim on the understanding that after such-and-such a period he will pay the sum and buy the said property back; and if he is unable to buy it back by the appointed date, then after that the right of repurchase ends and the property is yours. The said buyer collects from those who sold it a fixed rent for it. Is this correct? And what is the difference between a pledge (rahn) and this?

Answer

According to the Shariʿa this is not a definitive sale; rather, it is bayʿ al-wafaʾ (a sale with the condition of repurchase), which has the ruling of a pledge. In this case collecting rent is not correct.

Source: Fatawa Mahmudiyya

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