Home » Hanafi Fiqh » Askimam.org » Invested money with real estate broker – buying 6 lands will have a profit of 10-12%, if I need to withdraw my money earlier before completion of project, I’ll get my money back with only 5% profit

Invested money with real estate broker – buying 6 lands will have a profit of 10-12%, if I need to withdraw my money earlier before completion of project, I’ll get my money back with only 5% profit

Answered as per Hanafi Fiqh by Askimam.org

I have invested my money with a real estate broker who gave me a study of an investment of buying 6 lands which will have a profit of almost 10-12% as soon as the lands will be sold, with the condition that if I need to withdraw my money earlier before the completion of the project, I?ll get my money back with only 5% profit. 2 lands were sold from these 6 and I have earned good profit in both of them. Now I need the remaining amount invested and I?ll get back only 5% profit. Is this considered as interest (Riba) because it’s a fixed amount?

Answer

This is not considered interest as the profit is based on a percentage.

and Allah Ta’ala Knows Best

Mufti Ebrahim Desai

Original Source Link

This answer was collected from Askimam.org, which is operated under the supervision of Mufti Ebrahim Desai from South Africa.

Read answers with similar topics: