Buy Back Conditions in Transactions
Question
My friend needs cash immediately. He wants to sell his car to me for Half a Million Rand on condition that I sell the car back to him after one year. Then he will pay me back Half a Million Rand for the car. Is this condition permissible?
Answer
A buy back condition is an invalid (Faasid) condition in a transaction.
Thus, if your friend sells a car to you on condition that you sell the car back to him after one year, the transaction will be valid but the condition becomes invalid (Faasid) and is not binding. In that case, it will not be necessary and binding upon you to sell the car back to your friend after one year.
Alternatively, if the buyback condition is excluded as a condition from the transaction and you unilaterally undertake to sell the car to your friend after one year, the transaction will be valid and the undertaking will be morally binding. (Ahsanul Fataawa 6/507)
And Allah Ta’ala Knows Best
- Answered by
- Mufti Ismaeel Bassa, Mufti Moosa Salie
Fatawa SA is an independent, read-only index of fatawa already published by Jamiatul Ulama KZN. It is not a fatwa service. For your own situation, ask the issuing Darul Ifta directly.