Issues about Borrowing Money with Riba
Fatwa No: 447043

Question

Is attending a property transaction where buyer is getting loan forbidden?What I have read till now is indulging in riba in anyway is forbidden, be it taking, giving, making contract, executing or being witness. My questions: 1) What if I do not facilitate loan but get leads of muslim buyers who are willing to take loan on their own...can I work for just seller in that case? If yes then can I do documentation/paperwork for him?2) As a real estate agent can I attend the closure meeting from seller side while muslim buyer is getting bank loan on its own? Will I become a witness?3) In my city muslim developers provide loan to muslim buyers, can I work for them to bring buyers? I am worried about getting indulged in Riba transaction. What is the solution for it?

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

Borrowing money with Riba (Interest/Usury), is one of the major prohibitions; so, it is not permissible to help a person by guiding him to it or writing it (this contract of Riba).

Jabir  may  Allaah  be  pleased  with  him narrated that the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) said “Allah has cursed the one who consumes Riba (i.e. usury or interest), the one who gives it to others, the one who records it and the one who witnesses it (its transaction).” He  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) added: “All of them are equal in sin.” [Muslim]

An-Nawawi may  Allaah  have  mercy  upon  him said in Sharhf Muslim:

This is an explicit statement on the prohibition of recording sale transactions between two parties in a Riba-based contract or being a witness on them. It also proves the prohibition of helping in falsehood.” [End of quote]

As for selling real estate to someone who buys it with money borrowed with interest; there is nothing wrong with it, because we are of the view that the prohibition of interest-based loans is related to the borrower who borrowed money with Riba and not to the very money.

If there are any developers who lend goodly loan [a loan without Riba], then there is nothing wrong with guiding people to these loans and helping them with it.

For more benefit on the prohibition of borrowing money with Riba and the ruling of dealing with Riba, please refer to Fatawa 404938, 402904, 100833, 379279, 136065, 86136 and 86521.

Allah Knows best.

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