Issue in Completing Home Payment

Issue in Completing Home Payment

Question:

Assalaamu Alaikum ,

Topic: Issue is completing home booking payment

Description : I am Indian national residing in gulf from past 5 years. four years back i have invested in under construction residential property which will be delivered to me in 2022. Considering that i have enough time to pay the property amount from my savings without any loans i have taken this decision.

Alhamdulillaah by grace of Allaah swt so far i have already paid more than 50% property amount without any loans.

However, due to current economic situation bulder is asking me to pay the remaining amount in one go else they will terminate my booking and i will not get any balance amount in return( they have accumulated interest amount in the demand letter) and forcing me to go for non-islamic home loan ( wchi i am no willing to take). I have also tried to get some finance from islamic banking here but even banks are not providing any personal loans at the moment.

So, now i have only two choice remaining : 1) to loose my flat and my payments done so far(including the interest amount) or 2) apply for non-islamic home loan.

The decision i have made is to try negotiate with builder and figure out a way to it. Else, i will terminate the flat and bear the loss. In any case i will not take interest based loan. However the amount they are deducting from my payments done so far also include interest amount. So will i be sinful in this case

Please guid me how to come out of this situation and make duaa for me.

Answer:

In the name of Allah, Most Compassionate, Most Merciful,

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Brother Mohmed Yusuf,

It is pleasing to note that you wish to refrain and stay away from interest based loans and mortgages.

Indeed, Shariah has strictly prohibited and condemned all forms of Riba (interest). Riba is Haram and it causes the displeasure of Allah Ta’ala. No sin has been given a more severe and stern warning than the sin of being involved with Riba. The Quran explicitly states in Surah Al-Baqarah that Allah has declared war on those who involve themselves in this evil sin:

يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ. فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ (سورة البقرة:278/279)

Translation: “Oh those who believe, fear Allah and give up what still remains of the Riba (interest) if you are believers. But if you do not then listen to the declaration of war from Allah and His Messenger.” (Surah Al-Baqarah:278/279)

In the enquired situation, we advise that you try your best to negotiate with the builder and agree on mutual terms that don’t involve you having to deal with interest. However, if you are unable to agree on mutual terms and are required to pay the remaining amount, we would advise that you try and obtain an interest free loan from family and friends and totally avoid an interest-bearing loan from conventional banks.

And Allah Ta’āla Knows Best

Hammad Ibn Ismail Jogiat

Student - Darul Iftaa

Cambridge, Ontario, Canada

Checked and Approved by,

Mufti Ebrahim Desai.

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