❖ Sharʿī Ruling on Returning Advance Rent When the Agreement is Cancelled ❖
Question:
If a person pays ₹13,000 as advance rent and ₹37,000 as refundable advance for a property but later cancels the agreement and decides not to rent the property at all, is it permissible for the property owner to keep the advance rent?
Answer by:
Fadhīlat al-ʿĀlim Ikrāmullāh Wāḥidī ḥafiẓahullāh
✔ If the tenant cancels the agreement and does not use the property, then:
① The ₹37,000 refundable deposit must be returned in full, as it was not compensation for any service or usage.
② The ₹13,000 advance rent:
Breaking a contract or promise without a valid Sharʿī excuse is sinful, as fulfilling promises is a key Islamic teaching.
"وَأَوْفُوا بِالْعَهْدِ ۖ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا"
“And fulfill every [proper] covenant. Verily, the covenant will be questioned about.”
➤ [Surah al-Isrā’: 34]
◈ The landlord has no right to retain the advance rent or deposit if the property was not used.
◈ All refundable amounts should be returned, and any deduction is only valid for actual usage or damage, if applicable.
◈ This approach is in line with justice, honesty, and Sharʿī ethics.
Question:
If a person pays ₹13,000 as advance rent and ₹37,000 as refundable advance for a property but later cancels the agreement and decides not to rent the property at all, is it permissible for the property owner to keep the advance rent?
Answer by:
Fadhīlat al-ʿĀlim Ikrāmullāh Wāḥidī ḥafiẓahullāh
❀ Sharʿī Guideline:
✔ If the tenant cancels the agreement and does not use the property, then:
① The ₹37,000 refundable deposit must be returned in full, as it was not compensation for any service or usage.
② The ₹13,000 advance rent:
- If the property was used, rent should be kept proportionate to the usage, and the rest returned.
- If the property was never used, then keeping the rent is not permissible, and it must be returned.
Important Principle:
Breaking a contract or promise without a valid Sharʿī excuse is sinful, as fulfilling promises is a key Islamic teaching."وَأَوْفُوا بِالْعَهْدِ ۖ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا"
“And fulfill every [proper] covenant. Verily, the covenant will be questioned about.”
➤ [Surah al-Isrā’: 34]
Conclusion:
◈ The landlord has no right to retain the advance rent or deposit if the property was not used.
◈ All refundable amounts should be returned, and any deduction is only valid for actual usage or damage, if applicable.
◈ This approach is in line with justice, honesty, and Sharʿī ethics.
