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Can I get a discount for pre-paying for a property not yet ready?

Answered as per Hanafi Fiqh by Darulifta-Deoband.com
I. At present they have already purchased the land and construction to be started soon which will complete in next 3-4 years as per their estimate. Since they need money for construction they open booking for shop/office space now only where you have to pay 60 to 80% of price of the space you want to book and they will pay back 12% pa on monthly basis as profit till it is ready for possession. Is it lawful to take this money? The other option is that they are giving some flat discount in the price itself if you do not want to take this monthly return but the discount amount they are calculating from 60% or 75% of total amount for the profit return in expected month of project completion. Mufti sahib I have already booked one office but I have to select the option. Please guide me as per the Shariah at the earliest?


(Fatwa: 230/D=56/File-D=1433)

The first option in which the company returns 12% profit every year on monthly basis after paying 60% or 80% amount in the beginning, it is unlawful to take it as it is interest. As if the company gives 12% profit on the amount which is in his hand. However the second option in which, in case of not taking the profit, the company reduces the price of land from its side on percentage basis, it is lawful. It falls under the category reducing some price, in which the seller gives some concession in price. In this option, the company can reduce as much amount as they wish and fix whatever percentage they want.

Allah (Subhana Wa Ta’ala) knows Best

Darul Ifta,
Darul Uloom Deoband

This answer was collected from the official ifta website of Darul Uloom Deoband in India.

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