Resolution No.(183)(16/2012) by the Board of Iftaa`, Research and Islamic Studies:
"Ruling on Combining an Ijarah and a Conditioned Hibah"
Date: 5/2/1434 AH, corresponding to 19/12/2012 A.D
All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
On the aforementioned date, the Board reviewed the ruling of Islamic Sharia on combining the lease contract of a property with a binding promise to grant that property to the tenant after the leasing period ends.
After researching and deliberating, the Board decided the following:
Combining the lease of a property with the promise of granting it (property) to the tenant if the latter complies with the conditions set by the landlord is an example of combined contracts that don`t violate Islamic Sharia. In addition, there is no Sharia text that forbids the combination of such contracts.
This is because Ijarah (Leasing) is a binding contract whose rent and period are defined and agreed upon by the contracting parties. Similarly, Hibah (Donation/Grant) is a donation contract which is permissible to be conditioned, as stated by some Hanbalite scholars. Combining them involves no risk since the tenant is able to make full use of the property/house and since he had agreed to the amount of the rent in the first place.
The Malikites` Mufti in Makah, Sheikh Mohammad Bin Ali, passed away in 1367 A.H, stated: "As for examples of Ijarah and Hibah-which are similar to the sale transaction in terms of rulings and conditions- it is permissible to combine any of them with the sale transaction. It is also permissible to combine both of them in one contract because they aren`t contradictory." [Tahtheeb Al-Forooq]
Resolution No.(4/12) of the International Islamic Fiqh Academy states that the above form of transaction is permissible. This has also been confirmed by the Accounting and Auditing Organization for Islamic Financial Institutions/standard (9,8/1) as well as the Fatwa committees in the Muslim World.
All the above is permitted under the condition that the contracting parties abide by the rulings concerning rent throughout the lease period. When applying such transactions, Islamic banks are obliged to comply with all the Sharia standards in this regard. And Allah Knows Best.
The Grand Mufti of Jordan / His Eminence Sheikh AbdulKareem al-Khasawneh
Prof. Dr. Abdulsalam Al-Abbadi / Member
Dr. Yahia al-Botoosh / Member
Sheikh Sae`id Hijjawi / Member
Dr. Wasif al-Bakhri / Member
Prof. Mohammad al-Qhodat / Member
Dr. Mohammad Al-Khalayleh / Member
Dr. Mohammad Khair Al-Esa / Member
Dr. Mohammad al-Z`obi / Member
