Question Summary:
Does a person become the owner of the property which was put on his name?

Question Detail:

My father intends purchasing a house as an investment. He intends putting it on my brothers name as he intends giving it to my brother after he passes away. Can my father collect the rent or will the rent belong to my brother?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.

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

If your father purchases a property and merely puts it on your brother’s name with the intention of your brother owning it after the demise of your father, then the property belongs to your father.

If your father passes away, that property will form part of the estate and be divided according to the laws of inheritance and succession.

Your brother will not be owner of the property. If your father gifts the property to your brother and relinquishes all rights over the property, including the rentals, then your brother will be the owner from now and not after your father’s death. In such a situation, we advise a separate gifting document be drawn up and signed between your father and brother. Your brother may forfeit the rentals in favour of your father,

The gifting document should comprise of two issues which are 1) the offer and 2) the acceptance traditionally known as Iyjaab and Qabool respectively.

1)    Iyjaab (offer)

I (the name of the person giving the gift) have gifted (the name of the person whom the gift is intended for) the house (mention specifically which house or asset is being gifted) and have relinquished all rights of it. This should be followed by the signature of the person giving the gift.

2)    Qabool (acceptance)

I (the name of the recipient of the gift) have accepted the house (the asset being gifted) which has been gifted to me. This should be followed by the signature of the recipient.

After this, the recipient should take possession of the asset being gifted to him for the process of gifting to be complete.

It is also advised that two people witness this process to avoid future complications.

And Allaah Ta’aala Knows Best

Muhammed Al-Ameen Bin Moulana Ismail Akoo

Student, Darul Iftaa

Newcastle; KZN, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.