Selling A Property Held As Surety

Business Dealings, Rahn (Mortgage)

Question

A person borrows 1 million Rand. He says that will pay back in 3 months, he gives his property worth 4 million Rand as surety. The person fails to pay back after three months , the property is claimed. Is this correct in Islam?

Answer

It is not permissible for the one holding the 4 million Rand property as surety to sell the property without the consent of the owner. Yes, if the owner consented to the sale of the property, then there is no harm in doing so.

However, if the debtor (one that borrowed the funds) is not meeting his instalments, nor is he consenting to the sale of the property then the matter should be referred to a Muslim judge, with whose consent the property may be sold.

Checked and Approved By:

Mufti Muhammed Saeed Motara Saheb D.B.

References

Fataawa Darul Uloom Zakariyya Pg. 61 Vol.6

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