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Am i allowed to buy a property which has a off-license shop and convenience store?

Answered according to Hanafi Fiqh by Askimam.org

Subject: I am allowed to buy a property which has a off-license shop and convenience store

I gave a loan to one of my client who is not in a position to repay that loan and secondly his visa has been refused (UK Visa) and he might end up leaving the country.

He has offered me to buy his property however this property has already been rented out on a short term lease and leaseholder is running off-licence and convenience store from the same premises.

The lease period is 7 years, out of that 2 years have already passed. There are remaining 5 years after which I will have to extend the lease. I might request leaseholder to vacate the premises but this might be difficult as he may argue that I have now established my business and as there has never been delay in paying rent on time hence either lease should be extended or goodwill should be paid which might be a considerable amount.

I would like to know whether this sort of rental income is permissible in Islam as I am not involved in running the business and I would purely be getting rental income from the leaseholder. Secondly, what would be the situation at the time of renewal of lease as I have no option now, If i buy the property, I will have to carry on with the lease but after 5 years at the time of renewing I will have option but might have to pay damages/goodwill if asked to vacate the property.

I would be thankful if you could put me in right direction.

MAY ALLAH GIVE YOU RRWARD FOR TTHAT.

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh

We understand that you issued a loan to your client and he cannot afford to repay the loan. He has offered to buy out his property. In principle, it is permissible for you to purchase the property in exchange of the loan payable to you.

You state that the leaseholder is running off-license and convenience store from the same premises. What do you mean by off-license?

And Allah Ta’āla Knows Best

Ismail Desai,

Darul Iftaa

Checked and Approved,

Mufti Ebrahim Desai.

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

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