Question: 1. If I am a middleman in a property transaction i.e. I am able to get hold of a property cheap because the owner is in financial difficulty and is struggling to pay the mortgage which would be either capital re-payment or interest only and he wants to get rid of it. If I decide to take the property off him but rather than getting/buying the property myself I sell this lead to another person/investor say for £5k is this permissible?
2. If this is possible to do then what happens if that person gets a mortgage after I’ve sold the lead to him am I answerable if he got out a mortgage or is that nothing to do with me?
I am going to send you 2 examples of what I mean in relation to this question: After reading this example which means I am controlling the property only I will not own it immediately but if will have a option to buy in the future. This means that the property will have no mortgage or if it does it won’t be in my name it will be in the sellers name. However I will agree to take over his mortgage payments but I will get tenants in who will pay his mortgage and I will take my cut i.e. the difference between the mortgage payment & the rental payment will be my profit.
Question 3. Can I pay someone else’s mortgage be it capital payment or interest only in case they miss a payment or they ask me to pay for it because they are struggling themselves that month. It’s the same as if a family member could not pay off the loan or mortgage and asked me to give them some money to help them out for a month or so.
4. If I did pay it is it not possible to then at the end of the year work out what interest I have paid and take this out as interest money to give away? If you can also suggest what is permissible within property transactions I would be most grateful.
In the name of Allah, the most Beneficent, the most Merciful.
In the aforementioned scenario it is permissible to receive this property and then sell it to someone at whatever price you wish. The receiving of this house is considered as a gift.
In the Hanafi Fiqh the handing over of an item by the Wahib (giver) and receiving by the other (Mawhuub Lahu) is a necessary condition for the gift to be considered complete. For example, if someone gives a gift, which can be transferred like clothes, books etc. then the possession by the other is essential. However, if the gift cannot be moved or transferred like a piece of land or a house then the handing over of the deeds or the keys will be sufficient. Here physical possession will not be necessary for the gift to be considered complete. (Raddul Muhtar p.490 v.8)
Moreover, if the giver says some words or sentences, which clearly, unambiguously indicate to a gift, then that gift will become valid. Later when the giver hands over the gift or for non-transferable goods, keys or the deeds then the gift will become complete. (Raddul Muhtar p.490 v.8)
You are not responsible for the actions of another individual. Hence, if the person you sold the house to gets a mortgage of the house you will not be deemed responsible for his actions.
In the Holy Quran Allah Tala has said:
“And nobody does anything but to his own account and no bearer of burden shall bear the burden of another.” (Al-Anam v.164)
Taking & giving interest is counted as one of the greatest and heinous sins in Islam.
Allah Tala has declared war on those who do not give up taking interest.
“O’ you who believe! Be afraid of Allah and give up what remains from riba (interest) if you are believers. And if you do not do it, then be ready for war with Allah and his Prophet Sallallahu Alahi Wasalam. (Al-Baqarah v.228)
Also Allah (SWA) has said:
“Allah has permitted transactions and has forbidden riba” (Surah Al Baqarah v.275)
The Prophet of Allah (Sallallahu Alahi Wasalam) has cursed the person who takes interest, who gives interest and who writes it and who witnesses it.”
(Mishkaatul-Masabeeh p.244 v.1)
The Prophet of Allah (Sallallahu Alahi Wasalam) has said: “To take dirham of interest knowingly is worse than committing adultery 36 times.” (Mishkaatul-Masabeeh p.246 v.1)
Therefore, it would not be permissible for you to pay of the mortgage in the aforementioned scenario. Merely changing the name or your intention of why you are giving does not alter the ruling.
It will be permissible for you to calculate the amount of interest you paid and give the money to charity without the intention of reward. The recipients of interest money are the poor and destitute. (Raddul Muhtar p.553 v.9 & Jadeed Fiqhi Masaail p.406 v.1)
Only Allah Knows Best
Mohammed Tosir Miah
Darul Ifta Birmingham