Authored by: Dr. Muhammad Zia-ur-Rahman Azmi رحمہ اللہ
If buildings have been constructed with a loan from a real estate development fund and are still mortgaged to that institution, the scholars have differing opinions on this matter. The disagreement is based on whether a pledge (rahn) becomes binding without physical possession or not.
Those who say that a mortgage does not become binding without physical possession hold that acts of disposition like waqf (which transfer ownership) are valid, since the mortgage is not yet physically possessed. On the other hand, those who maintain that a mortgage becomes binding even without physical possession believe that such acts of disposition (like waqf) are not valid.
Therefore, caution dictates that one should not endow such properties until the bank’s obligations have been settled. This not only resolves the issue of differing scholarly opinions but also ensures compliance with the Hadith that states: “Muslims must abide by their conditions.”
[Sunan Abu Dawood, Hadith no. 5349]
[Ibn Baz: Majmuʿ al-Fatawa wa’l-Maqalat 25/20]
If buildings have been constructed with a loan from a real estate development fund and are still mortgaged to that institution, the scholars have differing opinions on this matter. The disagreement is based on whether a pledge (rahn) becomes binding without physical possession or not.
Those who say that a mortgage does not become binding without physical possession hold that acts of disposition like waqf (which transfer ownership) are valid, since the mortgage is not yet physically possessed. On the other hand, those who maintain that a mortgage becomes binding even without physical possession believe that such acts of disposition (like waqf) are not valid.
Therefore, caution dictates that one should not endow such properties until the bank’s obligations have been settled. This not only resolves the issue of differing scholarly opinions but also ensures compliance with the Hadith that states: “Muslims must abide by their conditions.”
[Sunan Abu Dawood, Hadith no. 5349]
[Ibn Baz: Majmuʿ al-Fatawa wa’l-Maqalat 25/20]
