We are into Real Estate Development business in Mumbai. Our project is under the development stage with construction undergoing. Mentioned below is an example of a business transaction for which we seek clarity in the light of Shariah. The other party in this transaction is an investor and his sole intent is to make profit out of his investment. Example:
Today I sold 5000 Sq feet of my property to an investor at Rs 500/- per Sq feet, this entitles him with ownership rights of 5000 Sq ft in my project. For the purpose of assurance and security that the investor would earn profit out of his investment, below mentioned are the 2 offers I make to him:
(1) I would buy the same area of property from him at a later time; maybe after 2-3 years at the price prevalent at that time?
(2) I offer him to buy the same area today at a price he quotes; however I would be pay him in installments over the next 2-3 years at intervals discussed and agreed upon today? Please advise.
Today I sold 5000 Sq feet of my property to an investor at Rs 500/- per Sq feet, this entitles him with ownership rights of 5000 Sq ft in my project. For the purpose of assurance and security that the investor would earn profit out of his investment, below mentioned are the 2 offers I make to him:
(1) I would buy the same area of property from him at a later time; maybe after 2-3 years at the price prevalent at that time?
(2) I offer him to buy the same area today at a price he quotes; however I would be pay him in installments over the next 2-3 years at intervals discussed and agreed upon today? Please advise.
بسم الله الرحمن الرحيم
(Fatwa: 357/400/L=04/1436)
Both the offers are alright. You may proceed. However, it is just a promise; neither it shall be necessary for the buyer to sell it to you nor shall it be necessary for you to buy it. If after finalizing the first deal the second deal was done anew then it shall be valid.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband