Darul Iftaa Mahmudiyyah

invested money with real estate broker - buying 6 lands will have a profit of 10-12%, if I need to withdraw my money earlier before completion of project, I’ll get my money back with only 5% profit

· 22 Shawwal 1424 AH1 min readFatwa 10388English

Question

I have invested my money with a real estate broker who gave me a study of an investment of buying 6 lands which will have a profit of almost 10-12% as soon as the lands will be sold, with the condition that if I need to withdraw my money earlier before the completion of the project, I?ll get my money back with only 5% profit. 2 lands were sold from these 6 and I have earned good profit in both of them. Now I need the remaining amount invested and I?ll get back only 5% profit. Is this considered as interest (Riba) because it?s a fixed amount?

Answer

This is not considered interest as the profit is based on a percentage.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/10388
Fatawa SA: https://fatawa.co.za/fatwa/askimam-10388

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