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Home Q&A Trade and Commerce Buying a Car with Condition

Q: A transaction had taken place between 2 Muslim brothers in the following manner. Zaid bought a car in the auction for R140,000. At the time of purchasing the car his intention was to sell it to his brother Bakr for the same price of R140,000. If Bakr was not going to take the car Zaid was going to sell it at a higher price making a profit for himself. The car was offered to Bakr at the price of R140,000. Bakr accepted and said that I will take it at that price and sell the car. Zaid said that I am giving it to you at that price, if you are going to sell it then I want R5,000 of that sale. Bakr agreed on the condition and purchased the car at R140,000, and after selling the car R5,000 will be given to Zaid.

The question is. Is such a transaction permissible. Or is this Riba/interest. Even if Bakr agreed to the above conditions?

A: This transaction is not correct. Zaid should purchase the car outright and in a separate deal sell it to his brother at a profit.

Aadiel Moosagie (Mufti)
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