Narrated by Sayyiduna Sa’d bin Abi Waqqas (may Allah be pleased with him): In the time of the Prophet (peace and blessings be upon him), the owners of fields used to lease their lands in exchange for that portion of land where water channels flowed or around wells where water would rise by itself. But when they brought some disputes regarding these matters to the Messenger of Allah (peace and blessings be upon him), he forbade them from leasing land in this manner and said: Lease land in exchange for gold and silver.
Hadith Referenceالفتح الربانی / كتاب المساقاة والمزارعة وكراء الأرض / 6127
Hadith Gradingمحدثین:صحیح
Hadith Takhrij«حسن لغيره۔ أخرجه ابوداود: 3391، والنسائي: 7/ 41، (انظر مسند أحمد ترقيم الرسالة: 1542 ترقیم بيت الأفكار الدولية: 1542»
Brief Explanation
Benefits: … From this chapter, it is understood that the reason for prohibiting leasing land was that the owner would reserve certain portions of the land for himself as rent, which would sometimes result in the owner gaining more benefit and the sharecropper (muzari‘) incurring a loss, and sometimes the opposite. Secondly, this issue is established that it is permissible to give land on contract, for example, to lease one acre of land for one year in exchange for eight thousand rupees.