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Can land purchased on loan be inherited?

Answered according to Hanafi Fiqh by DarulUloomTT.net

Assalamu alaikum, A father purchases land on loan with interest as he didn’t have the money, so that he can later on try to build a house for his family. Question 1, will it be permissible for his children to inherit this land that was purchased with interest,while he is alive or after he has passed. Question 2, will it be permissible for his child to accept an offer made by the father to extend the house he built and the child can live there because the child doesn’t own his/her own home and is renting.

Answer:

Wa Alaikum As Salaam,

  1. It will be permissible for the children to inherit the land that was purchased by the father, whether it is done while he is alive or after he passes away.

(Based on what you have explained, the father did not purchase the land with interest (money). Instead, he took a loan and agreed to pay interest on that loan. He then used the money he borrowed to purchase the land. The interest is what he will be paying to the bank when he is repaying the loan. Although, his agreement to pay interest on the loan was not lawful in Islam, the monies he used to pay for the land was borrowed – money, and not interest – money. Therefore, it cannot be said that he purchased the land with interest – money. Instead, it was Halaal money which he used, by borrowing it. The Haraam money is what he will be paying as interest to the bank or financial institute.

  1. Yes, it will be permissible for his child to accept the offer to extend the house and live there, since the child doesn’t have his own house.

And Allah Knows best

Mufti Waseem Khan

06/03/2020

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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