Banking: Sharʿī Validity of Housing Bank Installment Purchases and Ownership Status

Practical Laws of Islam as per the teachings of Imam Khamenei

Banking: Sharʿī Validity of Housing Bank Installment Purchases and Ownership Status

English:

Question #1900:

We bought some property through the housing bank. It was agreed that we repay the money the bank gave us by monthly installments. Is this type of transaction valid as per shar‘, and did we become the owners of the property?

Answer #1900:

There is no objection to that, should the bank have bought the property for itself, then sold it to you by installments.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Banking