❀ Shar‘i Ruling on Benefiting from Mortgaged Land ❀
Source: Ahkam wa Masail, Issues of Buying & Selling, Vol. 1, p. 357
❖ Question:
Can the mortgagee (the one holding the collateral) benefit from mortgaged land or not?
❖ Answer:
Alhamdulillah, was-salatu was-salamu ‘ala Rasulillah, amma ba‘d!
If something is kept as collateral (rahn), and it is an item that can be used for riding or produces milk, then it is permissible to benefit from it, but only in exchange for bearing its expenses.
The Messenger of Allah ﷺ said:
“The mortgaged animal may be ridden if it is fed, and its milk may be drunk if it is milked, and upon the one who rides or drinks is the responsibility of the expenses.”
(Sahih al-Bukhari, Kitab al-Rahn, Bab al-Rahn Markub wa Mahlub)
➥ This hadith makes it clear that one may benefit from a pledged item only if its expenses are borne.
On the same principle, other mortgaged items may also be used, provided that such benefit does not amount to riba (interest).
Thus, in the case of mortgaged land:
◈ Benefiting from mortgaged land is permissible,
◈ On the condition that it is not a form of riba and the benefit is in return for expenses incurred.
ھذا ما عندي، والله أعلم بالصواب
