Question Summary:
Is the following suggestion correct?

Question Detail:

i had initially sent through my email to the address 'daruliftaa@alinaam.co.za'
not sure if this address is correct i reporduce the question below.  if i have caused duplication, i sincerely ask for maaf.
 
Assalaamu 'Alaikum Warahmatullahi Wabarakaatu
 
Respected Mufti Saab
 
My farther in law has given a property to his 3 children. They wish to develop the property. They do not have the finance to develop it and have resorted to obtaining an interest bearing loan. It is my father in laws desire that this investment be for his 3 children.
We have advised that we cannot be part to the interest transaction and loan.
They cannot pay us out for the property share as they do not have any funds and the building is to be financed by the bank.
They have come back with 2 options:
 
-        We have no part in the company, and they donate/gift an amount to their sister each month. (it stands to reason that they will look at the amount of rental profits is made and give her an amount equal to her share)
-        The second option is that they rent out the land from their sister.  And when the building is free hold they will give her as a present.  Initially She will own her share of the land and nothing of the building.
 
My suggestion was a further option… they can put up the building amongst themselves only. Once its up they can fix a selling price to us. We then agree to have this payable to them at a fixed payment plan over 10 years.  The building process and the bond will be their responsibility, and once we enter into a purchase agreement with them,  we will immediately be entitled to her full share of the rental profits.
 
 
Would any of the above options work out sharia wise, or can we amend them to be something sharia would allow? Please advise further.
 
The project is quite substantial, at 25million.  While that should not sway the sharia decision, its also not something to just leave out. So it would be of great appreciation if you could advise /or structure a proposal for the wife’s share as the remaining parties see no issue with going along with a bond.
 
 
 
Jazakallah
 
Shuaib

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
At the outset, we apologize for the belated response. 
According to our understanding of the issue, your wife is a 1/3 shareholder of the property. Her siblings wish to obtain an interest bearing loan to develop the property and she does not want to be part of that as taking an interest bearing loan is prohibited. The attitude of your wife is correct. A person engaged in interest bearing loan incur the wrath of Allah and many other evils. Consider the following:
Allah Ta’ala says:
 
الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ذَلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَى فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ وَمَنْ عَادَ فَأُولَئِكَ أَصْحَابُ النَّارِ هُمْ فِيهَا خَالِدُونَ.
[سورة البقرة :٢٧٥]
Translation :
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein. [ Surah : Al Baqarah, Verse: 275]
It is mentioned in a hadith:
حَدَّثَنَا أَحْمَدُ بْنُ يُونُسَ، حَدَّثَنَا زُهَيْرٌ، حَدَّثَنَا سِمَاكٌ، حَدَّثَنِي عَبْدُ الرَّحْمَنِ بْنُ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنْ أَبِيهِ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَهُ وَكَاتِبَهُ ‏.
 
Hazrat Abdullah ibn Mas'ud Radiallahu Anhu Narrated;
The Messenger of Allah (ﷺ) cursed the one who accepted usury, the one who paid it, the witness to it, and the one who recorded it.
[Tirmizi: 1206]
In another hadith it is mentioned:
عن أبي هريرة رضي الله عنه عن النبي صلى الله عليه وسلم قال‏:‏ “أجتنبوا السبع الموبقات” قالوا‏:‏ يا رسول الله وما هن‏؟‏ قال‏:‏ ‏"‏الشرك بالله، والسحر، وقتل النفس التى حرم الله إلا بالحق، وأكل الربا، وأكل مال اليتيم، والتولي يوم الزحف، وقذف المحصنات الغافلات”‏‏(‏متفق عليه‏‏‏)‏‏.‏
 
 
 
Hazrat Abu Hurairah Radiallahu Anhu said:
The Prophet (ﷺ) said, "Avoid the seven destructive things." It was asked: (by those present): "What are they, O Messenger of Allah?" He replied, "Associating anyone or anything with Allah in worship; practising sorcery, killing of someone without a just cause whom Allah has forbidden, devouring the property of an orphan, eating of usury, fleeing from the battlefield and slandering chaste women who never even think of anything touching chastity and are good believers."

[Al Bukhari and Muslim].
 
The alternatives presented by you are not suitable. Your wife may sell her portion of the land to her siblings. If and when the property is developed, she may consider purchasing a share in it with mutual repayment agreements.[1]
 
And Allah Ta’āla Knows Best
Jibran kadarkhan
Student Darul Iftaa
Mauritius
Checked and Approved by,
Mufti Ebrahim Desai.
 
[1]
اتقوا الله واعدلوا في أولادكم» فالعدل من حقوق الأولاد في العطايا والوقف عطية فيسوي بين الذكر والأنثى، لأنهم فسروا العدل في الأولاد بالتسوية ف العطايا حال الحياة. وفي الخانية ولو وهب شيئا لأولاده في الصحة، وأراد تفضيل البعض على البعض روي عن أبي حنيفة لا بأس به إذا كان التفضيل لزيادة فضل في الدين وإن كانوا سواء يكره وروى المعلى عن أبي يوسف أنه لا بأس به إذا لم يقصد الإضرار وإلا سوى بينهم وعليه الفتوى(الرد المحتار ج4 ص444 سعيد)
 
فتاوى محمودية ج20 ص278 فاروقية