A fixed-term sale and the benefit from it

Question

Question: (1) Karim Bakhsh borrowed four hundred rupees on interest from a moneylender, and the principal and interest together came to five hundred rupees in all. Karim Bakhsh settled with the moneylender to clear his account in full for two hundred and fifty rupees, and in order to give the moneylender the two hundred and fifty rupees he sold his house to ʿUmar for three hundred rupees; he had ʿUmar write a written undertaking that on the return of his three hundred rupees he would give the house back to him,…

Answer

(1) Stipulating return in a sale renders the sale defective (fasid), and its rescission (faskh) is wajib. In reality this is a pledge, and deriving benefit from a pledge is not permissible — rather, it is interest; therefore this fixed-term sale is impermissible. (2) Taking these six rupees is impermissible.

Source: Fatawa Mahmudiyya

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