Q: I want to ask about buy and leaseback in Islam. Is it allowed?
There is this company selling shops in a mall with this buy and leaseback contracts where we own the shop but rights of giving it on rent resides with company and we get a fixed rent of 0.7% with 10% raise per year.
Also the company guarantees 20% price appreciation per year if we sell the shop back to them. All these are written in a single contract. Isnt this just the same as keeping money in banks with a fixed profit?
A: It is incorrect.
And Allah Ta’ala (الله تعالى) knows best.
Mufti Ebrahim Salejee (Isipingo Beach)