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Real Estate Brokerage

Answered according to Hanafi Fiqh by Albalagh.net

Real Estate Brokerage

By Shaykh Abdurrahman ibn Yusuf


Q.) I am taking this opportunity to ask you a question which could help me in seeking the halal earnings.

I live in Canada and want to become a real estate agent. But somebody told me that it is not permissible since it involves mortgages and conventional mortgage loans involve interest and a real estate agent will be a witness in the process of real estate transaction. So the earnings from the transaction would not be halal.

What if an agent refers or asks the buyer to go to so and so bank for his mortgage? And as you know that nowadays there are very few institutions in Canada that offer Shariah mortgage. Further, only Muslims will get Shariah mortgage and not non-Muslims.

Please explain whether being a real estate agent is completely not permissible or are there any circumstance in which real estate earnings could be halal. [Muhammad Babar]


A.) It would be permissible for you to act as an estate broker in securing a sale or purchase of a house for your client as long as you do not take any part in advising, facilitating, or securing a conventional loan for your client. Hence, being a broker is not categorically haram unless you take part somehow in the mortgage part of it. You may be able to overcome the representation of the mortgage by acquiring a proof of the ability of payment on part of the buyer (however he may be arranging that payment), and pass that onto the seller, and let them finalize the deal.

There is a shariah compliant house financing company that has recently started in Canada which you may able to use as an alternative to the conventional mortgages. Their website is  http://www.umfinancial.com/

And Allah knows best.

This answer was collected from Albalagh.net, which is an Islamic site with Q&A and articles authored by many world renowned scholars from the Muslim world. Many of Mufti Taqi Uthmani’s fatawa in English are found exclusively on this site.

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