I am planning to buy an old apartment from another person. He had purchased that apartment on bank home loan (interest based loan) and still 50% amount he has to pay to the bank. Can I purchase this property and continue the bank loan to pay remaining amount? Is it halal to buy such property? I fear Allah and don’t want any transaction which is haram.
بسم الله الرحمن الرحيم
(Fatwa: 706/695/M=6/1438)
In the question mentioned above you may buy that house from that person after fixing the price but instead of paying the rest amount to the bank you should pay to that person so that there is no helping from your behalf in paying interest. Further, if the person pays the loan of the bank with that amount then its sin will be on that person in case he has taken the loan without a Shariah compulsion. However, there is no harm for you to buy that house and you may pay the whole amount to that person.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband