Atlanta Interest Free Investment Fund for House Purchase

Answered by 

Shaykh Taqi Usmani

Atlanta Interest Free Investment Fund for House Purchase

By Mufti Taqi Usmani
Posted: 10 Shawwal 1423, 15 December 2002

Q.) I have financed the house through Atlanta Interest Free Investment Fund LLC that finance the house based on the shared ownership. The person each month pays the rent + principal amount till he has bought the 100% share in the house. Now I have two questions:

1. Can the rent amount be different than the market rent to make the profit closer to a certain percentage?

2. Is it permissible to ask the resident tenant to pay the home insurance and all the other expense occured at home? [Iftikhar Ahmed]

A.) I cannot comment without a careful study of the agreements underlying the transaction. Basic requirement is that all these agreements are approved by a competent Shariah Board or by a Shariah Scholar.

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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.

Tags: insurance, Interest, investment, Shariah, Shawwal, study

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